Supreme Facility (SFML)

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

Key Financials

Strengths

• Revenue growth of 15.03% shows the business is expanding.
• P/E of 9.02 is inexpensive on the surface.
• ROCE of 13.88% indicates reasonable capital efficiency.
• Promoter holding of 71.52% aligns owners with minority shareholders.
• Latest quarter revenue of ₹230 Cr gives the company meaningful scale.

Concerns

• Profit growth of -7.50% despite sales growth signals margin compression.
• Latest quarter net margin is only about 1.7% (₹4 Cr profit on ₹230 Cr sales).
• Piotroski F-Score of 4/9 suggests weak financial health.
• No dividend, book value, ROE, or debt-equity disclosure limits a full valuation.

AI Analysis

At ₹21.05, Supreme Facility has a market cap of only ₹71 Cr and trades at a P/E of 9.02. That looks like the kind of low-multiple stock Graham would filter for. But cheapness alone never made a fortune. Revenue grew 15.03%, yet profit declined 7.50%. In other words, the company is doing more business and keeping less profit. The latest quarter shows the problem: ₹230 Cr of sales produced just ₹4 Cr of net profit, roughly a 1.7% margin. Such thin margins leave no room for error. ROCE at 13.88% is decent, but without book value, ROE, or debt-to-equity data, I cannot form a full picture of the balance sheet. The Piotroski F-Score of 4/9 adds to my caution — this is not a fundamentally healthy score. On the positive side, promoters hold 71.52%; I like owners with skin in the game. But the company pays no dividend, so minority shareholders must rely solely on capital gains. In diversified commercial services, the moat is likely weak. Contracts are often price-sensitive, and labour competition can squeeze margins. The PEG of 0.60 assumes strong growth, but the growth in earnings is negative. That makes the P/E less attractive than it appears. Is this a Graham value stock or a value trap? At this point, I cannot tell. I need evidence that profit margins are stabilising and that the balance sheet is safe. As Buffett says, price is what you pay, value is what you get. In Supreme Facility, I don't yet see enough value to act with conviction.

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