SUPREMEIND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

📊 Core Financials Analysis

Revenue & Profitability

Quarterly PAT has declined from ₹294 Cr. to ₹202 Cr. (QoQ drop of 26%), indicating short-term pressure.

EPS stands at ₹70, which is solid, but the high P/E suggests stretched valuation.

ROCE of 22% and ROE of 17.1% reflect strong capital efficiency and shareholder returns.

Debt & Liquidity

Debt-to-equity ratio is extremely low at 0.01 — virtually debt-free, which is a major strength.

Healthy dividend yield of 0.79% adds to shareholder value.

Cash Flow

While specific cash flow data isn’t provided, low debt and strong ROCE imply robust operational cash generation.

📉 Valuation Metrics

Metric Value Remarks

P/E Ratio 61.8 Very high vs. industry PE of 26.4

P/B Ratio ~9.7 Premium valuation

PEG Ratio -44.8 Negative due to declining earnings

Intrinsic Value Overvalued Based on current earnings trajectory

The stock trades at a significant premium to industry averages, suggesting overvaluation unless growth rebounds sharply.

🏭 Business Model & Competitive Edge

Supreme Industries is a leader in plastic products, packaging, and piping solutions — sectors with long-term demand.

Strong brand, wide distribution, and diversified product lines offer a durable competitive advantage.

Near-zero debt and high return metrics reflect operational excellence.

📌 Entry Zone & Investment Guidance

Entry Zone: ₹3,400–₹3,800 range (closer to 200 DMA and recent low of ₹3,020) could offer a safer entry point.

Current Price: ₹4,325 — near resistance levels and above both 50 & 200 DMA, suggesting limited upside in short term.

Long-Term View

Hold if already invested — strong fundamentals and business model.

New investors should wait for a correction or earnings rebound before entering.

Would you like a comparison with peers like Finolex or Astral to assess relative value?

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