SUPREMEIND - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 4.3
| Stock Code | SUPREMEIND | Market Cap | 44,776 Cr. | Current Price | 3,524 ₹ | High / Low | 4,665 ₹ |
| Stock P/E | 50.3 | Book Value | 429 ₹ | Dividend Yield | 1.02 % | ROCE | 22.6 % |
| ROE | 17.1 % | Face Value | 2.00 ₹ | DMA 50 | 3,596 ₹ | DMA 200 | 3,762 ₹ |
| Chg in FII Hold | -2.11 % | Chg in DII Hold | 2.02 % | PAT Qtr | 382 Cr. | PAT Prev Qtr | 158 Cr. |
| RSI | 47.2 | MACD | -22.7 | Volume | 2,91,262 | Avg Vol 1Wk | 1,89,459 |
| Low price | 3,182 ₹ | High price | 4,665 ₹ | PEG Ratio | 8.24 | Debt to equity | 0.02 |
| 52w Index | 23.1 % | Qtr Profit Var | 46.1 % | EPS | 71.7 ₹ | Industry PE | 20.9 |
📊 SUPREMEIND (Supreme Industries Ltd.) demonstrates strong fundamentals with a market cap of ₹44,776 Cr. Current P/E of 50.3 is significantly higher than the industry average (20.9), reflecting premium valuations. ROCE (22.6%) and ROE (17.1%) highlight strong efficiency, while dividend yield of 1.02% adds stability. EPS of ₹71.7 and quarterly PAT growth (₹158 Cr → ₹382 Cr) show robust profitability. However, PEG ratio of 8.24 suggests valuations are stretched relative to growth.
💡 Entry Price Zone: Current price ₹3,524 is below both 50 DMA (₹3,596) and 200 DMA (₹3,762), indicating weakness. Ideal entry lies between ₹3,300–₹3,500, with deeper accumulation possible around ₹3,150–₹3,250 if market correction persists.
📈 Exit Strategy / Holding Period: For existing holders, SUPREMEIND remains a strong long-term candidate given high ROE and ROCE. Hold for 3–5 years, targeting exits near ₹4,600–₹4,650 resistance levels. Monitor PEG ratio and FII holding trends (-2.11%) as valuation risks.
Positive ✅
- 📌 Strong ROCE of 22.6% and ROE of 17.1% show efficiency.
- 📌 Low debt-to-equity ratio of 0.02 ensures financial stability.
- 📌 Quarterly PAT growth (+46.1%) reflects strong profitability momentum.
- 📌 EPS of ₹71.7 supports valuation strength.
Limitation ⚠️
- 📌 Elevated P/E ratio of 50.3 compared to industry average (20.9).
- 📌 High PEG ratio of 8.24 indicates stretched valuations.
- 📌 RSI at 47.2 and negative MACD (-22.7) suggest weak momentum.
Company Negative News 📉
- 📌 Reduction in FII holdings (-2.11%).
- 📌 Stock trading well below 52-week high (₹4,665).
Company Positive News 📈
- 📌 Increase in DII holdings (+2.02%).
- 📌 Strong quarterly profit growth.
Industry 🌐
- 📌 Industry P/E at 20.9 suggests sector is moderately valued.
- 📌 Plastics and industrial products sector benefits from infrastructure and housing demand.
Conclusion 🏭
SUPREMEIND is a fundamentally strong company with high ROE, ROCE, and low debt, making it a solid long-term candidate. Entry between ₹3,300–₹3,500 offers favorable risk-reward. Hold for 3–5 years, with partial exits near ₹4,600–₹4,650. Long-term sustainability depends on managing valuations and maintaining profit growth momentum.
Would you like me to extend this into a peer benchmarking to compare Supreme Industries against other plastic and industrial product leaders for valuation and efficiency?