Supreme Petrochem Limited

Basic Materials — Specialty Chemicals · NSE

₹770.00+₹6.05 (+0.79%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Supreme Petrochem Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Supreme Petrochem Limited engages in the manufacture and sale of polystyrene, expandable polystyrene, masterbatches and compounds of styrenics and other polymers, and extruded polystyrene insulation board in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees444

Annual revenue₹5,389 Cr

How does it make money?

Turns over ₹5,389 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 444 employees supports ₹12.14 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin10.3%

Net margin6.1%

Revenue / employee₹12.14 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Some evidence

ROCE of 18.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.1%

ROE13.9%

Peer median ROE22.3%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 7.6% and earnings to fall about 5.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+7.6%

Est. earnings growth-5.3%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +2% while net margin moved -35% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+2%

Margin effect-35%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.7% — barely ahead of inflation
✗ Profit has declined at 12.9% a year

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

29.9x

3Y Median

34.4x

40 monthly readings · mean 33.5x · range 18.1x–47.0x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 34.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 26% below the peer median of 40.4x.

vs. its own history

Fair

34.4x median over 40 months · -13%

vs. sector peers

Cheap

40.4x median of 4 peers · -26%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

29.9x

P/B

6.09x

EV/EBITDA

25.9x

PEG

—

Dividend Yield

1.36%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 12.9% to 10.3% over 3 years.
Debt is rising
Total debt is up 701% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 27.0% to 13.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 35.5% to 18.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 43% against revenue growth of 2% — customers are taking longer to pay.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 701% over 3 years, from ₹17 Cr to ₹133 Cr.
🔴High leverageFinancial
Debt/Equity of 5.61x — earnings must service borrowings before shareholders see anything.
🟡Profit is decliningFinancial
Net profit is down 34% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 43% against revenue up 2% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 26% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 12.9% to 10.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.61x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 43% against revenue up 2%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 0.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 27.0% to 13.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.7% CAGR
Latest reported year was 23.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹36 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹14,479 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.9x

Fair

Fairly valued against the generic band

P/B Ratio

6.09x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹25.79

Profitable

Profitable on a per-share basis

ROE

13.9%

Moderate

Moderate capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.61x

High

High leverage

Revenue Growth (YoY)

23.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

193.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.36%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹36 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹770

P/E (Forward)

30.7x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

17.8%

Good

Healthy core-business profitability

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

2.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.06

Defensive

Steadier than the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

818.8 / 770.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

25.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,278 Cr	₹5,236 Cr	₹6,002 Cr	₹5,389 Cr	+0.7%
EBITDA	₹683 Cr	₹505 Cr	₹577 Cr	₹553 Cr	-6.8%
EBITDA Margin	12.9%	9.6%	9.6%	10.3%	—
PAT (Net Profit)	₹498 Cr	₹346 Cr	₹391 Cr	₹329 Cr	-12.9%
EPS	₹26.49	₹18.43	₹20.77	₹17.51	-12.9%
ROE	27.0%	17.2%	17.5%	13.9%	—
ROCE	35.5%	21.9%	22.5%	18.1%	—
Total Debt	₹17 Cr	₹114 Cr	₹130 Cr	₹133 Cr	+100.1%
Free Cash Flow	₹98 Cr	₹244 Cr	-₹36 Cr	₹36 Cr	-28.6%

🟡 Revenue has been broadly flat over 3 years (0.7% a year).

🔴 EBITDA has shrunk at 6.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.9% to 10.3% over 3 years (-2.7 pts).

🔴 PAT (Net Profit) has shrunk at 12.9% a year over 3 years.

🔴 EPS has shrunk at 12.9% a year over 3 years.

🔴 ROE has fallen from 27.0% to 13.9% over 3 years (-13.2 pts).

🔴 ROCE has fallen from 35.5% to 18.1% over 3 years (-17.4 pts).

🔴 Total Debt has grown at 100.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 28.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,490 Cr

Total Liabilities

₹1,112 Cr

Total Debt

₹133 Cr

Cash & Equivalents

₹296 Cr

Operating Cash Flow

₹247 Cr

Capex

-₹211 Cr

Shareholding (proxy)

Institutional Holding

7.0%

Insider Holding

66.2%

Corporate Actions

Dividend Rate

₹10.5

Ex-Dividend Date

14 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹805

+4.5% vs CMP

Target Range

₹767 – ₹843

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive3 mixed2 general

Is Supreme Petrochem the Best Stock in Its Sector? A Look at the Numbers

Univest, 15 Oct

SPLPETRO Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Supreme Petrochem shares rise up to 6% intraday as trading volume spikes

CNBC TV18, 31 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Supreme Petrochem profit surges 192% in Q1 FY27 on widened global deltas

scanx.trade, 27 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Shareholders Should Be Pleased With Supreme Petrochem Limited's (NSE:SPLPETRO) Price

Simply Wall Street, 26 Nov

Supreme Petrochem Share Price rises 5.13% on price action

Univest, 18 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟡Financial HealthAdequate12.5/20

🔴GrowthWeak5/20

🟡ProfitabilityModerate7.1/15

🔴ValuationDemanding6.5/15

🟡RiskModerate5.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 8%10.3%
✗Revenue growth stays above 4% a year0.7% CAGR
✓Free cash flow remains positive₹36 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 15%18.1%