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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Supreme Engineering Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:23 pm

Market Cap 29.7 Cr.
Current Price 1.19
High / Low1.40/0.50
Stock P/E
Book Value 2.70
Dividend Yield0.00 %
ROCE120 %
ROE%
Face Value 1.00
PEG Ratio0.00

Competitors of Supreme Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Balu Forge Industries Ltd 3,509 Cr. 342344/15537.5 53.90.00 %30.0 %25.0 % 10.0
Craftsman Automation Ltd 9,335 Cr. 4,4185,514/3,78230.7 7850.25 %20.0 %20.0 % 5.00
Marshall Machines Ltd 65.6 Cr. 27.561.2/22.3 31.80.00 %3.36 %9.35 % 10.0
Artson Engineering Ltd 702 Cr. 190218/74.6116 0.250.00 %23.2 %% 1.00
BMW Industries Ltd 1,365 Cr. 60.686.0/27.721.4 29.40.36 %13.2 %10.1 % 1.00
Industry Average4,944.17 Cr770.5934.39131.610.23%17.09%19.00%6.23

Quarterly Result

MonthMar 2019Sep 2019Mar 2020Sep 2020Sep 2021Sep 2022Sep 2023
Sales91848315291115
Expenses82757615291616
Operating Profit9970-0-5-1
OPM %10%11%9%1%-0%-43%-5%
Other Income1010101
Interest3554310
Depreciation1111111
Profit before tax642-5-4-6-1
Tax %26%28%21%-3%9%23%-33%
Net Profit432-5-3-5-1
EPS in Rs0.160.110.06-0.21-0.14-0.20-0.05

Last Updated: June 9, 2024, 3:51 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:10 am

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Sales4352113120152174167707318
Expenses41511031081341561506478124
Operating Profit2110121817176-6-106
OPM %5%2%9%10%12%10%10%9%-8%-574%
Other Income0010111310
Interest007898101041
Depreciation0012223322
Profit before tax2113795-3-11-109
Tax %56%146%22%24%31%25%24%5%17%3%
Net Profit1-112574-3-9-105
EPS in Rs5.05-2.555.6010.750.270.270.15-0.12-0.37-4.21
Dividend Payout %0%0%0%0%0%18%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2011-20122016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-200.00%100.00%150.00%40.00%-42.86%-175.00%-200.00%-1066.67%
Change in YoY Net Profit Growth (%)0.00%300.00%50.00%-110.00%-82.86%-132.14%-25.00%-866.67%

Growth

Compounded Sales Growth
10 Years:%
5 Years:-34%
3 Years:-52%
TTM:-75%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-1052%
Stock Price CAGR
10 Years:%
5 Years:-22%
3 Years:-33%
1 Year:-25%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: April 11, 2024, 7:59 am

Balance Sheet

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital222218252525252525
Reserves6612141026262314-91-92
Preference Capital1111000000
Borrowings16268288838990106103103101
Other Liabilities2632183863519059221921
Total Liabilities50661141421741922312131645655
Fixed Assets1110172028282825262322
CWIP00762000000
Investments00770000000
Other Assets3955821091451632021881393433
Total Assets50661141421741922312131645655

Reserves and Borrowings Chart

Supreme Engineering Ltd Cash Flow

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 001085-1711-469
Cash from Investing Activity 001-31-003-01
Cash from Financing Activity 00-10-4-517-133-9-9
Net Cash Flow000120-22-40

Free Cash Flow

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.000.009.0011.0018.0017.0017.006.00-6.00-106.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days501218812212713120237210620
Inventory Days168204239229270713628487
Days Payable4911115710420029848171
Cash Conversion Cycle50121207216209256271787686336
Working Capital Days78114118192178223236622545-106
ROCE %4%10%15%13%11%5%-5%-120%

Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)-42.08-3.66-1.181.703.05
Diluted EPS (Rs.)-42.08-3.66-1.181.703.05
Cash EPS (Rs.)-4.12-2.69-0.162.423.46
Book Value[Excl.RevalReserv]/Share (Rs.)-2.6515.4819.0921.4920.39
Book Value[Incl.RevalReserv]/Share (Rs.)-2.6515.4819.0921.4920.39
Dividend / Share (Rs.)0.000.000.000.000.50
Revenue From Operations / Share (Rs.)0.7329.1228.0066.7769.44
PBDIT / Share (Rs.)-4.21-1.893.676.947.37
PBIT / Share (Rs.)-4.29-2.862.666.226.62
PBT / Share (Rs.)-4.34-4.43-1.252.293.61
Net Profit / Share (Rs.)-4.21-3.66-1.181.702.71
PBDIT Margin (%)-571.35-6.5013.1010.3910.62
PBIT Margin (%)-583.12-9.829.489.319.53
PBT Margin (%)-590.10-15.21-4.473.425.19
Net Profit Margin (%)-571.57-12.56-4.222.543.89
Return on Networth / Equity (%)0.00-23.62-6.197.9113.26
Return on Capital Employeed (%)206.65-12.229.5721.2523.72
Return On Assets (%)-187.23-5.62-1.381.823.52
Long Term Debt / Equity (X)-0.210.550.440.310.31
Total Debt / Equity (X)-1.362.502.121.631.73
Asset Turnover Ratio (%)0.160.380.310.780.94
Current Ratio (X)0.251.311.311.281.32
Quick Ratio (X)0.080.250.560.630.57
Inventory Turnover Ratio (X)0.160.660.371.341.74
Dividend Payout Ratio (NP) (%)0.000.000.0021.140.00
Dividend Payout Ratio (CP) (%)0.000.000.0014.860.00
Earning Retention Ratio (%)0.000.000.0078.860.00
Cash Earning Retention Ratio (%)0.000.000.0085.140.00
Interest Coverage Ratio (X)-81.81-1.210.931.762.45
Interest Coverage Ratio (Post Tax) (X)-80.84-1.330.691.431.90
Enterprise Value (Cr.)103.76101.50163.19120.27140.36
EV / Net Operating Revenue (X)5.641.392.330.720.80
EV / EBITDA (X)-0.98-21.4317.796.937.61
MarketCap / Net Operating Revenue (X)0.880.080.960.210.33
Retention Ratios (%)0.000.000.0078.850.00
Price / BV (X)-0.240.161.410.681.13
Price / Net Operating Revenue (X)0.880.080.960.210.33
EarningsYield-6.47-1.41-0.040.110.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 6.20

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 420.71% compared to the current price 1.19

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Intrinsic Value: 4.41

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 270.55% compared to the current price ₹1.19

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Last 5 Year EPS CAGR: -28.84%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of -6.70%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 220.00, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 313.90, which may not be favorable.
    4. The company has higher borrowings (0.36) compared to reserves (-4.18), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (98.20) and profit (-9.50).

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Supreme Engineering Ltd:
      1. Net Profit Margin: -571.57%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 206.65% (Industry Average ROCE: %)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 0.00% (Industry Average ROE: %)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): -80.84
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 0.08
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. ✗ Stock P/E: (Industry average Stock P/E: )
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: -1.36
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company

    Supreme Engineering Ltd. is a Public Limited Listed company incorporated on 20/04/1987 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1987PLC043205 and registration number is 043205. Currently Company is involved in the business activities of Manufacture of hot-rolled and cold-rolled products of steel. Company’s Total Operating Revenue is Rs. 72.78 Cr. and Equity Capital is Rs. 25.00 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Engineering - GeneralR-223, MIDC Complex, Thane Belapur Road, Mumbai Maharashtra 400701cs@supremesteels.com
    http://www.supremesteels.com
    Management
    NamePosition Held
    Mr. Sanjay ChowdhriChairman & Managing Director
    Mr. Abhinav ChowdhriExecutive Director
    Mrs. Lalita ChowdhriNon Exe.Non Ind.Director
    Mr. Prakash DeshmukhInd.& Non Exe.Director
    Mr. Sanjeev KhandelwalInd.& Non Exe.Director
    Mrs. Reema VerseyInd.& Non Exe.Director

    FAQ

    What is the latest fair value of Supreme Engineering Ltd?

    The latest fair value of Supreme Engineering Ltd is ₹6.20.

    What is the Market Cap of Supreme Engineering Ltd?

    The Market Cap of Supreme Engineering Ltd is 29.7 Cr..

    What is the current Stock Price of Supreme Engineering Ltd as on 21 June 2024?

    The current stock price of Supreme Engineering Ltd as on 21 June 2024 is ₹1.19.

    What is the High / Low of Supreme Engineering Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Supreme Engineering Ltd stocks is 1.40/0.50.

    What is the Stock P/E of Supreme Engineering Ltd?

    The Stock P/E of Supreme Engineering Ltd is .

    What is the Book Value of Supreme Engineering Ltd?

    The Book Value of Supreme Engineering Ltd is 2.70.

    What is the Dividend Yield of Supreme Engineering Ltd?

    The Dividend Yield of Supreme Engineering Ltd is 0.00 %.

    What is the ROCE of Supreme Engineering Ltd?

    The ROCE of Supreme Engineering Ltd is 120 %.

    What is the ROE of Supreme Engineering Ltd?

    The ROE of Supreme Engineering Ltd is %.

    What is the Face Value of Supreme Engineering Ltd?

    The Face Value of Supreme Engineering Ltd is 1.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Supreme Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE