Supreme Infra. (SUPREMEINF)

FairStock Score: 5/100 — RISKY

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

Key Financials

Strengths

• Sales growth of 314.27% shows a notable increase in execution scale or order book recognition.
• Profit growth of 86.46% may indicate losses are narrowing versus the prior comparable period.
• Piotroski F-Score of 6/9 suggests some recent operational and balance-sheet improvements.
• Book value of ₹56.76 provides a tangible asset base, though leveraged.

Concerns

• Latest quarter net loss of ₹49 Cr on sales of ₹30 Cr shows deeply unprofitable operations.
• ROE of -114.20% and ROCE of 0.00% mean shareholder capital is being destroyed, not creating value.
• Debt/Equity of 4.22 is dangerously high for a construction company, raising solvency and interest-cost risks.
• Zero dividend, negative earnings, and a P/B of 1.33 offer no margin of safety for retail investors.

AI Analysis

At ₹75.61, this business is being valued at ₹809 Cr. Yet the latest quarter tells me the most important fact: sales of ₹30 Cr produced a net loss of ₹49 Cr. No rational owner can call that a going concern in good health. The 314% sales growth looks exciting, but the base is tiny, and 'profit growth' of 86.46% is cold comfort when the profit itself is deeply negative. Graham taught me to demand earnings power, not promises. Here ROCE is 0.00% and ROE is -114.20%, meaning capital is being consumed, not compounded. The balance sheet is worrisome: debt/equity of 4.22 is far too high for a construction company whose margins are often thin and unpredictable. Book value is ₹56.76, so P/B of 1.33 asks me to pay a premium for assets funded mostly by debt. That is not a margin of safety; it is a margin of hope. Civil construction has no durable moat—contracts are bid, competition is intense, and bookkeeping can hide problems until cash is demanded. The Piotroski F-score of 6/9 suggests some recent operating improvements, but with a ₹49 Cr quarterly loss, I need to see actual earnings, cash flow, and debt reduction. There is also no dividend to reward patient shareholders. In Buffett's words, 'turnaround seldom turns.' If this is a genuine turnaround, I will wait until the company proves it can earn positive returns on capital. Until then, this is a speculative, financially weak company—not a value investment.

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