Supreme Holdings (SUPREME)

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

Key Financials

Strengths

• Price ₹52.87 is a 64% discount to stated book value of ₹147.39, with P/B at 0.36.
• Debt/equity of 0.01 means near-zero leverage, lowering balance sheet risk.
• Promoter holding of 58.17% gives some alignment with minority shareholders.
• ROCE of 2.41% is positive even though low, suggesting some small operating return before capital charges.

Concerns

• Sales growth of -93.39% and latest quarterly sales of ₹1 Cr show the business has almost no revenue momentum.
• Profit growth of -96.76%, net profit of ₹0 Cr, and ROE of -0.17% show no current earning power.
• Piotroski F-Score of 3/9 suggests weak financial condition and possible asset-quality issues.
• Zero dividend yield means no cash return while investors wait for potential asset realisation.

AI Analysis

At ₹52.87 against a book value of ₹147.39, this looks like the classic Graham cigar butt. Buying at 0.36 times book seems to give me a large margin of safety. But my first rule is to never treat a discount without understanding why it exists. The latest quarter reports sales of just ₹1 crore and net profit of ₹0 crore. Sales are down 93.39% and profits down 96.76%. With no meaningful earnings, the P/E of 0.00 tells me nothing; this is not an operating business right now, it is a collection of assets. ROE is -0.17%, and ROCE is only 2.41%. A 3/9 Piotroski F-Score confirms poor fundamentals. The one genuinely healthy sign is debt/equity of 0.01; there is almost no leverage, so the company is not being crushed by interest. Promoter holding at 58.17% is high, but high ownership by itself does not create value. In a residential and commercial project business, value comes from executing and selling projects at a profit. A 93% drop in sales suggests that engine has stalled. The question is whether the stated book value of ₹147.39 is real, reproducible, and eventually unlockable. If management can monetize land or projects, the margin could be large. If not, book value may slowly bleed and the discount can persist. Graham would call this an asset play, not a compounder. I would not pay for growth; I would only pay if I could see a credible catalyst and management with a history of shareholder-friendly capital allocation. Right now, I watch and wait.

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