Supreme Inds. (SUPREMEIND)

FairStock Score: 37/100 — MIXED

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

Key Financials

Strengths

• Very low leverage: Debt/Equity of 0.06 and Altman Z-Score of 7.12 indicate strong financial stability.
• Good capital efficiency with ROCE of 22.04%, supporting a competitive position.
• Piotroski F-Score of 7/9 shows underlying fundamentals remain reasonably healthy despite profit decline.
• Promoter holding of 48.96% aligns management with minority shareholders.
• Positive free cash flow of ₹206 Cr and 5-year revenue CAGR of 10.45% show historical resilience.

Concerns

• P/E of 62.01 with profit growth of -20.30% means paying a premium for falling earnings.
• Price of ₹3,677.30 is far above Graham Number of ₹801.80, leaving no margin of safety.
• Latest sales growth is just 2.78% and quarterly net margin is weak at about ₹153 Cr profit on ₹2,687 Cr sales.
• FairStock Score is 28/100 (RISKY), dividend yield is only 0.86%, and negative EV/EBITDA of -21.31 signals data or earnings quality issues.

AI Analysis

Judged by these figures, Supreme Industries is a financially solid business, but I would not buy it at this price. I like the house: debt-to-equity is just 0.06, Altman Z-score is 7.12, and Piotroski F-score of 7/9 suggests the earning power is not collapsing underneath. ROCE of 22.04% shows good capital efficiency, though ROE of 14.39% is modest for a stock trading at 8.25 times book. Promoter holding of 48.96% is a useful alignment signal. Five-year revenue CAGR of 10.45% shows historical compounding, and positive free cash flow of ₹206 Cr keeps the balance sheet safe. But I do not pay 62 times earnings for a business whose profit fell 20.30% and whose latest sales growth is only 2.78%. Last quarter, net profit of ₹153 Cr on sales of ₹2,687 Cr translates to a thin margin. The market cap of ₹50,496 Cr demands future growth I cannot see in these numbers. Graham’s number is only ₹801.80 against a market price of ₹3,677.30; the given margin of safety is -395.79%. Even if I treat the ₹50.57 DCF estimate as an unreliable extreme, the P/B of 8.25 gives me no asset cushion. The negative EV/EBITDA of -21.31 would make me question the data quality before acting. Dividend yield of 0.86% is not enough compensation for waiting. This is not a fast grower today; it looks closer to a slow grower, perhaps a cyclical with depressed margins, but priced as if growth had returned. I would keep it on my watchlist, not buy it. The FairStock score of 28/100 matches my instinct: risky at this price.

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