Supreme Power (SUPREMEPWR)

FairStock Score: 52/100 — MIXED

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

Key Financials

Strengths

• ROCE of 27.50% shows strong return on capital employed.
• Promoter holding of 57.16% aligns management with minority shareholders.
• Sales growth of 37.28% shows solid demand momentum.
• Piotroski F-Score of 7/9 suggests healthy financial fundamentals.
• P/E of 17.64 is not excessive for a growth-oriented business.

Concerns

• Profit growth of 6.62% lags far behind sales growth of 37.28%, indicating margin compression.
• Latest quarter net profit of ₹3 Cr on sales of ₹38 Cr is a thin margin.
• Dividend yield is 0.00%, so investors depend entirely on capital appreciation.
• Book value, ROE and debt/equity data are unavailable, making a Graham-style margin of safety hard to assess.

AI Analysis

Let's examine Supreme Power through the Graham-Buffett lens: return on capital, earnings power, and price. The business earns a ROCE of 27.50% — that is a genuinely good number. Promoters hold 57.16%, so minority shareholders have powerful skin in the game. The Piotroski F-Score of 7/9 is a comforting signal of financial fundamentals. These are the positives. Now the scepticism. Sales grew 37.28%, but profit growth is only 6.62%. In the latest quarter, Supreme Power did ₹38 Cr of sales and generated just ₹3 Cr of net profit — a thin margin. This is the classic tension of a fast grower: revenue is expanding far faster than earnings. The 0.00% dividend yield means I am completely dependent on reinvested growth and future capital gains. There is no cash return while I wait. At ₹235.20, the market cap is ₹372 Cr and the P/E is 17.64. That is not an unreasonable price if the profit engine catches up. The stated PEG of 0.80 appears attractive, but it contradicts the reported profit growth of 6.62%, so I will treat it with caution. Graham would insist on a margin of safety, and here book value, ROE and debt/equity are not available. That limits how much conviction I can have. The price is also about 19% below the 52-week high of ₹291.35 — there is some cushion, but not a deep-value one. This is a top-line fast grower with good capital efficiency and promoter alignment. I would keep it on a short watch list and demand evidence that profits, not just sales, are accelerating before committing significant capital.

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