Supreme Infrastructure India Limited

Industrials — Engineering & Construction · NSE

₹56.00+₹1.74 (+3.21%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Supreme Infrastructure India Limited, together with its subsidiaries, engages in the engineering and construction of roads, highways, buildings, and bridges in India. The company also engages in railways, power, water-infrastructure and drainage, and other projects.

IndustryEngineering & Construction

SectorIndustrials

Annual revenue₹65 Cr

How does it make money?

Turns over ₹65 Cr a year. Of every ₹100 of sales, about ₹8871 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation.

Who are its competitors?

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

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 2150.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -32% while net margin moved -840% 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-32%

Margin effect-840%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 12.2% a year

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

66/ 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

0.1x

Sector Median

30.1x

median of 3 sector peers

🟢Against its sector it trades 100% below the peer median of 30.1x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

30.1x median of 3 peers · -100%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8117.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -11.6% to 0.4% over 3 years.
Debt is being paid down
Total debt is down 72% over 3 years.
High return on capital employed
ROCE of 2150.6% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 2 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 6.32x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹10 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 279% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.41 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 2150.6% 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.
Margin expansion has further to run
EBITDA margin has risen from -11.6% to 0.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 72% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 100% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5914.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -2%✓ 0.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5914.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 2148%✓ 2150.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹546 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.1x

Cheap

Cheap against the generic band

P/B Ratio

1.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹980.45

Profitable

Profitable on a per-share basis

ROE

2482.4%

Strong

Strong capital efficiency

ROCE

2150.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.32x

High

High leverage

Revenue Growth (YoY)

189.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

506.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.8%

Weak

Thin margins leave little room for error

Net Margin

7564.0%

Good

Strong bottom-line conversion

Current Ratio

0.41

Tight

Tight short-term liquidity

Beta (vs Nifty)

1.20

Market-like

Moves roughly in line with the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

66.5 / 78.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹97 Cr	₹59 Cr	₹66 Cr	₹65 Cr	-12.2%
EBITDA	-₹11 Cr	-₹10 Cr	-₹34 Cr	₹0 Cr	—
EBITDA Margin	-11.6%	-17.7%	-50.9%	0.4%	—
PAT (Net Profit)	-₹1,158 Cr	-₹1,175 Cr	-₹1,426 Cr	₹5,796 Cr	—
EPS	₹-450.53	₹-457.07	₹-555.02	₹715.07	—
Total Debt	₹5,284 Cr	₹4,472 Cr	₹2,858 Cr	₹1,460 Cr	-34.9%
Free Cash Flow	-₹33 Cr	-₹14 Cr	₹8 Cr	-₹10 Cr	—

🔴 Revenue has shrunk at 12.2% a year over 3 years.

🟢 EBITDA has turned positive, from -₹11 Cr to ₹0 Cr.

🟢 EBITDA Margin has risen from -11.6% to 0.4% over 3 years (+12.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1,158 Cr to ₹5,796 Cr.

🟢 EPS has turned positive, from ₹-450.53 to ₹715.07.

🟢 Total Debt has shrunk at 34.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,689 Cr

Total Liabilities

₹2,458 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹8 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

12.7%

Insider Holding

66.4%

Corporate Actions

Ex-Dividend Date

03 Sept 2014

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

6 general

Supreme Infrastructure India vs Nifty 50 Return Comparison

Univest, 12 Oct

Supreme Infra Q1FY27 loss narrows to ₹59cr, net worth turns positive

scanx.trade, 17 Aug

Supreme Infrastructure India Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Supreme Infrastructure India Ltd leads losers in 'B' group

Business Standard, 19 Aug

Supreme Infrastructure India Share Price near 52-week low

Univest, 09 Oct

Supreme Infrastructure India Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

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

StrongBusiness Quality · Profitability · Valuation

MiddlingFinancial Health

WeakGrowth · Risk

Points for each in the Score ↑

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.

2 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑