SUPREMEIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | SUPREMEIND | Market Cap | 46,017 Cr. | Current Price | 3,623 ₹ | High / Low | 4,740 ₹ |
| Stock P/E | 50.5 | Book Value | 429 ₹ | Dividend Yield | 0.94 % | ROCE | 23.2 % |
| ROE | 17.5 % | Face Value | 2.00 ₹ | DMA 50 | 3,743 ₹ | DMA 200 | 3,845 ₹ |
| Chg in FII Hold | -2.11 % | Chg in DII Hold | 2.02 % | PAT Qtr | 382 Cr. | PAT Prev Qtr | 158 Cr. |
| RSI | 41.0 | MACD | -42.8 | Volume | 3,36,538 | Avg Vol 1Wk | 5,95,734 |
| Low price | 3,182 ₹ | High price | 4,740 ₹ | PEG Ratio | 7.29 | Debt to equity | 0.02 |
| 52w Index | 28.3 % | Qtr Profit Var | 46.1 % | EPS | 71.7 ₹ | Industry PE | 22.4 |
📊 SUPREMEIND (Supreme Industries Ltd.) shows strong operational efficiency with ROCE of 23.2% and ROE of 17.5%, supported by very low debt-to-equity (0.02). Earnings momentum is robust with quarterly PAT growth of 46.1% (₹382 Cr vs ₹158 Cr). However, valuations are stretched with a P/E of 50.5 compared to industry average of 22.4, and PEG ratio of 7.29 indicates overvaluation relative to growth. Technical indicators show weakness with RSI at 41.0 and MACD at -42.8, reflecting bearish sentiment. Despite this, the company’s strong fundamentals and leadership in plastics manufacturing provide long-term resilience.
💰 Ideal Entry Price Zone: ₹3,550 – ₹3,600 (near support levels and below 50 DMA).
📈 Exit / Holding Strategy: Hold for 3–5 years; consider profit booking near ₹3,850–₹3,900 unless momentum strengthens toward ₹4,000. Long-term investors benefit from strong ROCE and low leverage, but should monitor valuation risks.
✅ Positive
- Strong ROCE (23.2%) and ROE (17.5%) highlight efficient capital use.
- Quarterly PAT growth of 46.1% shows earnings momentum.
- EPS of ₹71.7 supports valuation strength.
- Low debt-to-equity ratio (0.02) reduces financial risk.
- DII holdings increased (+2.02%), showing domestic institutional confidence.
⚠️ Limitation
- P/E (50.5) is much higher than industry average (22.4), indicating overvaluation.
- PEG ratio of 7.29 suggests limited growth relative to valuation.
- FII holdings declined (-2.11%), showing reduced foreign investor interest.
- Stock trading below 50 DMA (₹3,743) and 200 DMA (₹3,845) reflects medium-term weakness.
📉 Company Negative News
- Valuation premium compared to industry peers.
- Weak technical indicators with RSI near oversold territory and bearish MACD.
📈 Company Positive News
- Strong quarterly profit growth and earnings momentum.
- DII inflows highlight domestic investor confidence.
- Low leverage ensures financial stability.
🏭 Industry
- Plastics and industrial manufacturing sector trades at industry PE of 22.4.
- Sector supported by infrastructure growth and consumer demand.
🔎 Conclusion
SUPREMEIND is fundamentally strong with efficient capital use, low leverage, and robust earnings growth. Entry near ₹3,550–₹3,600 offers better risk-reward. Long-term investors can hold for 3–5 years, targeting exits near ₹3,850–₹3,900, while monitoring valuation premium and foreign investor sentiment.