Supreme Engg. (SUPREMEENG)

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

Key Financials

Strengths

• Revenue growth of 45.15% shows improving demand or execution momentum.
• Profit growth of 111.86%, though from a weak base, points in a positive direction.
• Piotroski F-Score of 6/9 suggests some recent fundamental improvements.
• Promoter holding of 41.27% aligns owner interests with minority shareholders.

Concerns

• Book value is negative at -₹3.56 per share, leaving no net tangible asset cushion.
• Latest quarter net profit is ₹0 Cr despite ₹7 Cr sales, so operations are barely breaking even.
• ROCE at -37.17% indicates capital destruction; debt/equity is not calculable because equity is negative.
• No dividend, no meaningful P/E, and negative book value make traditional valuation metrics inapplicable.

AI Analysis

At ₹1.08, Supreme Engineering carries a market cap of ₹25 crore, but this is not a business I can value with confidence. The balance sheet shows a book value of minus ₹3.56 per share, meaning shareholders' funds are deeply negative. With ROCE at -37.17%, the company is destroying capital, not compounding it. The latest quarter shows sales of ₹7 crore but net profit of ₹0 crore, so even the 45.15% revenue growth has not reached the bottom line in any meaningful way. Profit growth of 111.86% sounds impressive, but when starting from a loss or near-zero base, percentages are seductive and dangerous. The iron and steel products industry is cyclical and demands financial staying power; Supreme Engg currently lacks that. There is no dividend, no positive book value to cushion a downturn, and debt/equity cannot even be calculated because equity itself is negative. A Piotroski score of 6/9 does suggest some recent operational improvement, and promoter holding of 41.27% is a positive signal. But good promoter alignment cannot replace a solvent balance sheet. I cannot compute a meaningful P/E with zero earnings, and with negative book value, a price-to-book ratio is useless. In Graham's language, this is not a bargain; it is a speculative situation. If management can sustain revenue growth, repair the balance sheet, and convert sales into genuine profit, it may become a turnaround. Until then, the margin of safety is absent. I would rather watch from the sidelines than pretend a ₹1.08 price is cheap.

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