⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SUPREMEIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | SUPREMEIND | Market Cap | 50,490 Cr. | Current Price | 3,976 ₹ | High / Low | 4,740 ₹ |
| Stock P/E | 63.8 | Book Value | 398 ₹ | Dividend Yield | 0.86 % | ROCE | 23.7 % |
| ROE | 18.1 % | Face Value | 2.00 ₹ | DMA 50 | 3,801 ₹ | DMA 200 | 3,883 ₹ |
| Chg in FII Hold | -1.43 % | Chg in DII Hold | 1.16 % | PAT Qtr | 158 Cr. | PAT Prev Qtr | 193 Cr. |
| RSI | 58.3 | MACD | 58.9 | Volume | 2,94,977 | Avg Vol 1Wk | 2,61,585 |
| Low price | 3,020 ₹ | High price | 4,740 ₹ | PEG Ratio | 29.4 | Debt to equity | 0.06 |
| 52w Index | 55.6 % | Qtr Profit Var | -11.8 % | EPS | 62.2 ₹ | Industry PE | 21.2 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT declined from ₹193 Cr. to ₹158 Cr. (-11.8%), showing short-term earnings pressure.
- Margins: ROE at 18.1% and ROCE at 23.7% reflect strong profitability and efficient capital use.
- Debt: Debt-to-equity ratio of 0.06 indicates negligible leverage, ensuring financial stability.
- Cash Flow: Healthy due to diversified plastic products portfolio and strong domestic demand.
💹 Valuation Indicators
- P/E Ratio: 63.8 vs Industry PE of 21.2 → significantly overvalued compared to peers.
- P/B Ratio: Current Price ₹3,976 vs Book Value ₹398 → ~9.99x, reflecting heavy premium valuation.
- PEG Ratio: 29.4 → indicates severe overvaluation relative to growth prospects.
- Intrinsic Value: Estimated fair value near ₹3,400–3,600, suggesting current price is overvalued.
🏭 Business Model & Competitive Advantage
- India’s leading plastic products manufacturer with diversified offerings in packaging, furniture, and industrial products.
- Strong brand presence and wide distribution network.
- Competitive advantage lies in scale, product diversification, and innovation in polymer solutions.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹3,400–3,600, closer to intrinsic value.
- Long-Term Holding: Suitable for investors seeking exposure to consumer and industrial plastics; hold for 5+ years with caution due to valuation risks.
✅ Positive
- Strong ROCE (23.7%) and ROE (18.1%) highlight profitability.
- Low debt-to-equity ratio (0.06) ensures financial stability.
- DII holdings increased (+1.16%), showing domestic institutional confidence.
⚠️ Limitation
- Quarterly PAT decline (-11.8%) indicates earnings pressure.
- Extremely high P/E ratio (63.8) compared to industry average.
- PEG ratio (29.4) signals severe overvaluation relative to growth.
📉 Company Negative News
- FII holdings decreased (-1.43%), showing reduced foreign investor interest.
- Profit decline due to margin pressures and rising input costs.
📈 Company Positive News
- DII holdings increased, reflecting domestic confidence.
- Strong brand presence and diversified product portfolio.
- Low debt levels provide resilience against market volatility.
🏭 Industry
- Plastics and polymer industry is cyclical, driven by raw material costs and consumer demand.
- Industry PE at 21.2 shows moderate valuation compared to Supreme Industries’ premium.
- Growing demand in packaging, infrastructure, and consumer goods supports long-term growth.
🔎 Conclusion
Supreme Industries demonstrates strong fundamentals with excellent ROCE, ROE, and negligible debt. However, current valuations are stretched with extremely high P/E and PEG ratios, and earnings have shown short-term pressure. Entry around ₹3,400–3,600 offers better risk-reward. Long-term investors can hold for 5+ years, benefiting from diversified product demand and industry growth, but caution is advised due to premium valuation.