Superior Indus. (519234)

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 28.12% shows the company is expanding its revenue base.
• Book value of ₹58.11 and P/B of 1.18 provide tangible asset cover close to the market price.
• P/E of 7.09 is optically cheap, though earnings quality needs close monitoring.
• ROCE of 6.56% is positive and shows some capital efficiency, even if modest.

Concerns

• Profit is collapsing: annual profit growth is -35.90% and latest quarter net profit is roughly ₹0 Cr.
• ROE of 2.40% is far below an acceptable return on equity, and dividend yield is 0.00%.
• Piotroski F-score of 4/9 suggests deteriorating financial health.
• Very small scale—₹6 Cr quarterly sales—and no identifiable moat in a commodity edible-oil business.

AI Analysis

Let me start with what I can measure. At ₹68.35, Superior Industries has a market cap of ₹95 Cr against a book value of ₹58.11 per share, so I am paying 1.18 times book. That is not a distressed price, but it is not expensive either. The real trouble is what that book earns. Return on equity is only 2.40%, and return on capital employed is just 6.56%. For an edible-oil processor—a commodity business with no pricing power—that is barely enough to earn a return on capital, and certainly not enough to compensate me for risk. Add a zero dividend, and the shareholder is paid nothing to wait. Sales grew 28.12%, which sounds healthy, but profit fell 35.90%, and the latest quarter shows ₹6 Cr sales and roughly ₹0 Cr net profit. A P/E of 7.09 looks cheap, but it is an illusion if earnings are collapsing. The Piotroski F-score of 4/9 tells me the fundamentals are deteriorating, not strengthening. I cannot build a moat around an edible oil processor of this tiny scale. There is no product differentiation, no pricing power, and no dividend. The only positive is the asset cover—book value of ₹58.11 near the market price—and the high 52-week range shows the market has chased the price up. But a prudent investor buys earnings power, not just assets. With ROE at 2.40% and no profit visibility, this has the hallmark of a cyclical commodity business at a point where revenue is running ahead of profits. I would want to see debt levels and cash flows, because the balance sheet strength is unknown. Superior Industries is not a business I could confidently call a compounder. It may be a trading candidate in a cyclical recovery, but not a buy for long-term value.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer