The Supreme Industries Limited

Industrials — Building Products & Equipment · NSE

₹3,595.50−₹20.50 (−0.57%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by moderate debt load.

In simple words: Strong business and financial position, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 The Supreme Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

The Supreme Industries Limited manufactures and sells plastic products in India.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees6,081

Annual revenue₹11,135 Cr

How does it make money?

Turns over ₹11,135 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 6,081 employees supports ₹1.83 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin14.9%

Net margin8.6%

Revenue / employee₹1.83 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 19.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.6%

ROE15.5%

Peer median ROE15.2%

What is the outlook?

28 analysts covering the stock expect revenue to grow about 15.8% and earnings to grow about 14.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.8%

Est. earnings growth+14.3%

Analysts28

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +22% while net margin moved -10% 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+22%

Margin effect-10%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 44.2x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 52.1x
✗ P/B of 7.40x is a steep premium to book

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

46/ 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

44.2x

3Y Median

52.1x

40 monthly readings · mean 55.2x · range 39.5x–87.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 15% below its 3y median of 52.1x. 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 50% below the peer median of 88.8x.

vs. its own history

Fair

52.1x median over 40 months · -15%

vs. sector peers

Cheap

88.8x median of 3 peers · -50%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

44.2x

P/B

7.40x

EV/EBITDA

27.3x

PEG

13.39

Dividend Yield

1.00%

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention3

Debt is rising
Total debt is up 78% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 19.7% to 15.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.5% to 19.6% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 78% over 3 years, from ₹51 Cr to ₹91 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.6% 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 50% 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?

Growth barely outpaces inflation
Revenue compounding at 6.8% 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 19.7% to 15.5%. 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 13%✓ 14.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.8% CAGR
Latest reported year was 4.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹410 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

₹45,692 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

44.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.40x

Rich

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

EPS (TTM)

₹81.27

Profitable

Profitable on a per-share basis

ROE

15.5%

Strong

Strong capital efficiency

ROCE

19.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.47x

Moderate

Moderate leverage

Revenue Growth (YoY)

4.2%

Modest

Modest growth

Profit Growth (YoY)

38.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.00%

Modest

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

Free Cash Flow

₹410 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹3,595.5

P/E (Forward)

34.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

10.1%

Average

Average margins

Net Margin

9.1%

Average

Average bottom-line conversion

Current Ratio

2.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.21

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3500.1 / 3511.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9,137 Cr	₹10,081 Cr	₹10,359 Cr	₹11,135 Cr	+6.8%
EBITDA	₹1,354 Cr	₹1,664 Cr	₹1,553 Cr	₹1,655 Cr	+6.9%
EBITDA Margin	14.8%	16.5%	15.0%	14.9%	—
PAT (Net Profit)	₹865 Cr	₹1,070 Cr	₹961 Cr	₹954 Cr	+3.3%
EPS	₹68.12	₹84.21	₹75.64	₹75.1	+3.3%
ROE	19.7%	20.9%	17.0%	15.5%	—
ROCE	24.5%	26.8%	21.3%	19.6%	—
Total Debt	₹51 Cr	₹55 Cr	₹76 Cr	₹91 Cr	+21.1%
Free Cash Flow	₹466 Cr	₹864 Cr	₹113 Cr	₹410 Cr	-4.2%

🟢 Revenue has grown at 6.8% a year over 3 years.

🟢 EBITDA has grown at 6.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 14.9% over 3 years.

🟢 PAT (Net Profit) has grown at 3.3% a year over 3 years.

🟢 EPS has grown at 3.3% a year over 3 years.

🔴 ROE has fallen from 19.7% to 15.5% over 3 years (-4.2 pts).

🔴 ROCE has fallen from 24.5% to 19.6% over 3 years (-4.9 pts).

🔴 Total Debt has grown at 21.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 4.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,795 Cr

Total Liabilities

₹1,626 Cr

Total Debt

₹91 Cr

Cash & Equivalents

₹649 Cr

Operating Cash Flow

₹1,225 Cr

Capex

-₹815 Cr

Shareholding (proxy)

Institutional Holding

29.8%

Insider Holding

51.7%

Corporate Actions

Next Earnings

26 Oct 2026

Dividend Rate

₹36

Ex-Dividend Date

25 Jun 2026

Analyst Consensus

Recommendations

22 Buy · 5 Hold · 2 Sell

Target Price (Mean)

₹4,004.62

+11.4% vs CMP

Target Range

₹3,150 – ₹4,661

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

4 mixed2 general

Supreme Industries (NSEI:SUPREMEIND) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

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

Supreme Industries (SUPREMEIND.NS) Steadies Near ₹3,600 With Modest Gains - Strong Buy Stocks

https://www.siam.in/, 15 Oct

Compare Supreme Industries with

Equitymaster, 16 Oct

SUPREMEIND 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 Industries Ltd (BOM:509930) Q1 2027 Earnings Call Highlights: Strong Profit Growth ...

Yahoo Finance, 28 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Supreme Industries Shares Rise 2.09% to Rs 3,570.00

Moneycontrol.com, 14 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.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong13.5/20

🔴GrowthWeak7.4/20

🟡ProfitabilityModerate8.4/15

🔴ValuationDemanding5.3/15

🟢RiskLow7.5/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 13%14.9%
✓Revenue growth stays above 5% a year6.8% CAGR
✓Free cash flow remains positive₹410 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 17%19.6%