Supreme Petrochem Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Supreme Petrochem Ltd trades at ₹694, in a confirmed uptrend and 13 weeks into that stage. That is −1.2% against its own 200-day average. It sits at 52% of a 52-week range of ₹501 to ₹870. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (1 week and counting).

Today the stock is in a confirmed uptrend — week 13 of stage 2. At ₹694 it trades −1.2% versus its 200-day average and sits at 52% of its 52-week range (₹501–₹870).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +1,152% while the NIFTY 500 moved +274% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (1 week and counting; last ahead the week of 2026-07-10) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: how the P/E reads against its own history.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Supreme Petrochem Ltd trades at 42.7× P/E, against too little history to rank. Its long-run median P/E is 41.3×, measured across 0.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 42.7× is against too little history to rank, against a long-run median of 41.3× measured over 0.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +461.2% against a −15.1% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read.

Supreme Petrochem Ltd reads as mixed on its fundamental arc. Mixed — revenue, profit and EPS growth are shrinking while ROCE is still lifting at 30.0% — falling growth against firm returns, so no single stage word fits yet. The read is built from 12 quarters across 4 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

55.7/100 — rank 4 of 7 in Petrochem - Polymers · 80% evidence confidence

Supreme Petrochem Ltd scores 55.7 out of 100 against the 7 companies it is compared with in Petrochem - Polymers, ranking 4. Cheap but unconfirmed: require improving earnings before treating the valuation as an opportunity.

The four contributions add to the total exactly: 14.1 + 14.7 + 14.1 + 12.8 = 55.7. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Supreme Petrochem Ltd reported ₹1,606 Cr of revenue in the Mar 26 quarter, +4.8% year on year. Over 20 years it has compounded at 6.9% a year. The last full year, Mar 26, came in at ₹5,406 Cr. The last four reported quarters add to ₹5,407 Cr.

Supreme Petrochem Ltd reported ₹1,606 Cr of revenue in the Mar 26 quarter, +4.8% year on year. Over 20 years it has compounded at 6.9% a year. The last full year, Mar 26, came in at ₹5,406 Cr. The last four reported quarters add to ₹5,407 Cr.

Mar 26 revenue came in at ₹5,406 Cr (+235.2% on the year), capping 20 years at 6.9% compound. The latest quarter (Mar 26) printed ₹1,606 Cr, +4.8% year on year.

Pace check: the last four quarters averaged −10.2% growth against the decade's 6.9% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −10.1% over the last 4 quarters against +1.5%/yr over the last 8 — rolling over; TTM profit −15.4% vs −2.5%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 16.0% this quarter (null pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Supreme Petrochem Ltd's operating margin is 16.0% in the Mar 26 quarter. That is the widest this company has ever printed on a full-year basis. Across 6 fiscal years the operating margin has ranged 3.0% to 10.0%. The current quarter is running above every full year in that window.

Supreme Petrochem Ltd's operating margin is 16.0% in the Mar 26 quarter. That is the widest this company has ever printed on a full-year basis. Across 6 fiscal years the operating margin has ranged 3.0% to 10.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 16.0%, null pp against the same quarter a year ago. Across 6 fiscal years the operating margin has ranged 3.0%–10.0%, and Mar 26's 10.0% is the top of that band — a record year.

Why the margin moved: operating margin went +6.5 pp year on year while gross margin went +8.0 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins slipped — did that reach the bottom line? Next: profit +57.9% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Supreme Petrochem Ltd earned ₹169 Cr of net profit in the Mar 26 quarter, +57.9% year on year. Full-year Mar 26 profit was ₹330 Cr. The 20-year compound rate is 16.0%. That is 10.5% of the quarter's revenue. The same quarter a year earlier earned ₹107 Cr.

Supreme Petrochem Ltd earned ₹169 Cr of net profit in the Mar 26 quarter, +57.9% year on year. Full-year Mar 26 profit was ₹330 Cr. The 20-year compound rate is 16.0%. That is 10.5% of the quarter's revenue. The same quarter a year earlier earned ₹107 Cr.

Mar 26 profit was ₹169 Cr, +57.9% year on year. On the full year, Mar 26 printed ₹330 Cr (+450.0%), and the 20-year compound rate is 16.0%.

Pace comparison, last four quarters: profit −19.5% vs revenue −10.2%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 85% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 85% of Supreme Petrochem Ltd's reported profit arrived as operating cash — the cash follows the profit. In Mar 26 that was ₹247 Cr of operating cash against ₹330 Cr of profit. Cash resolution here is annual, because quarterly cash statements are not published.

Mar 26: operating cash of ₹247 Cr against reported profit of ₹330 Cr. Across the last 3 fiscal years the conversion rate is 85% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 85%: the cash cycle stretched 13 days between FY06 and Mar 26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 21-day cycle and ₹74.0 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Supreme Petrochem Ltd's cash conversion cycle runs 21 days in Mar 26, up from 8 days in FY06. Capital spending ran ₹74.0 Cr over the last 3 years. At Mar 26 sales of ₹5,406 Cr each day of that cycle holds about ₹14.8 Cr, so roughly ₹311 Cr sits inside the business at any moment.

Mar 26: debtors at 35 days, inventory at 51 days — roughly 1.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 21 days, looser than FY06's 8.

The full loop: cash goes out to suppliers and production on day 0; stock waits 51 days to sell; customers pay about 35 days after that; and suppliers themselves are paid at 65 days — netting out to the 21-day cycle.

In money terms: at Mar 26 sales of ₹5,406 Cr, each day of the cycle holds about ₹14.8 Cr — so the 21-day loop keeps roughly ₹311 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹74.0 Cr over the last 3 fiscal years against ₹55.0 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹29.0 Cr (FY10) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 30% and the ROIC − WACC spread is +14.9 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Supreme Petrochem Ltd earns a ROCE of 30% in FY10. That is up from a trough of 13% in FY08. Return on invested capital clears the cost of that capital by +14.9 percentage points, so growth here adds value rather than only size. The wiring behind it is 6.1% net margin on 1.55× asset turns.

FY10 ROCE is 30%, recovered from a FY08 trough of 13% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (Mar 26): 6.1% net margin × 1.55× asset turns × 1.47× balance-sheet leverage ≈ 13.9% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 26.9% − 12.0% = a +14.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.06.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Supreme Petrochem Ltd carries total debt of ₹133 Cr against shareholder equity of ₹2,378 Cr as of Mar 26, a debt-to-equity of 0.06 — effectively unlevered. On the annual view that ratio went from 0.02 in FY22 to 0.06 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹133 Cr against shareholder equity of ₹2,378 Cr — a debt-to-equity of 0.06. On the annual view, debt-to-equity went from 0.02 (FY22) to 0.06 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 1.5 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 1.5 points of Supreme Petrochem Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 4.1% of the company. Foreign institutions moved +0.8 points over the same window, to 3.8%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +1.5 points over 8 quarters to 4.1%; Foreign institutions: +0.8 points over 8 quarters to 3.8%; Promoters: +0.0 points over 8 quarters to 64.2%.

Why the register moved: domestic institutions drove it (+1.5 points), alongside foreign institutions (+0.8 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Supreme Petrochem Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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