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Last Updated on: 06 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Supreme Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 6, 2024, 6:33 pm

Market Cap 58,365 Cr.
Current Price 4,600
High / Low6,482/3,601
Stock P/E53.5
Book Value 418
Dividend Yield0.65 %
ROCE28.6 %
ROE21.7 %
Face Value 2.00
PEG Ratio18.55

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Supreme Industries Ltd

Competitors of Supreme Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IIRM Holdings India Ltd 1,046 Cr. 154172/21.846.2 16.00.00 %%% 5.00
Fiberweb (India) Ltd 110 Cr. 38.666.6/29.012.0 56.00.00 %5.17 %4.61 % 10.0
Deep Polymers Ltd 175 Cr. 72.6120/68.026.1 34.10.00 %9.48 %9.69 % 10.0
DDev Plastiks Industries Ltd 2,957 Cr. 286458/16015.9 63.80.52 %41.9 %31.5 % 1.00
Bright Brothers Ltd 151 Cr. 267333/134 1190.38 %0.72 %8.44 % 10.0
Industry Average5,195.00 Cr731.6448.66185.230.25%15.95%13.41%7.63

All Competitor Stocks of Supreme Industries Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales2,0831,3421,9291,9452,5572,2062,0872,3112,5982,3692,3092,4493,008
Expenses1,5731,1201,6181,6272,1661,9371,9392,0072,1182,0471,9522,0702,517
Operating Profit510222311318391269147303480322356379491
OPM %24%17%16%16%15%12%7%13%18%14%15%15%16%
Other Income79494354786324366136374259
Interest5210221142258
Depreciation55565757596265657272727777
Profit before tax528213296314409268105273465283319338465
Tax %15%20%23%22%21%20%22%23%23%24%24%24%24%
Net Profit45017022924632421482210359216243256355
EPS in Rs35.4613.4018.0019.3425.5016.846.4616.5328.3016.9719.1420.1727.93

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales3,4043,9614,2542,9604,4624,9695,6125,5126,3557,7739,20210,13410,402
Expenses2,8683,3733,5882,4983,7004,1824,8274,6765,0716,5318,0028,5878,789
Operating Profit5365896664627627877858351,2841,2421,2001,5471,613
OPM %16%15%16%16%17%16%14%15%20%16%13%15%16%
Other Income365-48388932163224183173196
Interest557960323421262022581618
Depreciation82102139105154167184206213230263298312
Profit before tax4014144723225826376646411,2121,2321,1111,4051,479
Tax %33%34%34%37%35%32%32%27%19%21%22%24%
Net Profit2902833222214304324494679789688651,0701,128
EPS in Rs22.8422.3125.3817.4333.8833.9935.3236.8077.0076.2468.1284.2188.76
Dividend Payout %33%36%35%43%44%35%37%38%29%31%38%36%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)94.57%0.47%3.94%4.01%109.42%-1.02%-10.64%23.70%
Change in YoY Net Profit Growth (%)0.00%-94.11%3.47%0.07%105.41%-110.44%-9.62%34.34%

Supreme Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:13%
3 Years:17%
TTM:8%
Compounded Profit Growth
10 Years:14%
5 Years:21%
3 Years:2%
TTM:6%
Stock Price CAGR
10 Years:23%
5 Years:32%
3 Years:25%
1 Year:8%
Return on Equity
10 Years:24%
5 Years:25%
3 Years:23%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital252525252525252525252525
Reserves8541,0141,1861,2901,6701,8692,1292,2363,1443,8194,3775,083
Borrowings47047339341227924816244138465155
Other Liabilities6846687536978327939139171,0751,1061,2411,392
Total Liabilities2,0322,1792,3572,4252,8072,9363,2293,6194,2824,9965,6946,556
Fixed Assets1,0281,0881,0331,1851,2631,3531,5211,6081,7141,7672,0642,322
CWIP331810068477590935115684149
Investments110107121126175194222207337476577638
Other Assets8629661,1041,0461,3221,3141,3961,7112,1802,5972,9693,447
Total Assets2,0322,1792,3572,4252,8072,9363,2293,6194,2824,9965,6946,556

Reserves and Borrowings Chart

Cash Flow

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 4063256012964655085565391,2464708901,413
Cash from Investing Activity -363-134-186-218-202-267-240-196-199-403-345-591
Cash from Financing Activity -32-188-260-234-210-284-316-156-506-310-327-382
Net Cash Flow114155-15552-430188542-243219441

Free Cash Flow

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow66.00116.00273.0050.00483.00539.00623.00394.00-37.00-45.00-50.00-54.00

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

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days222220292328252122222018
Inventory Days76686010710180749470887874
Days Payable573839665956555860555155
Cash Conversion Cycle415242706452445733544737
Working Capital Days162310233740344120454030
ROCE %38%34%34%22%33%32%28%26%42%35%26%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters48.85%48.85%48.85%48.85%48.85%48.85%48.85%48.85%48.85%48.85%48.85%48.85%
FIIs16.16%16.16%15.79%16.32%17.41%18.10%19.06%23.85%24.65%24.68%25.05%25.93%
DIIs19.70%19.65%19.69%19.15%18.52%17.96%17.12%12.54%11.95%11.41%11.50%10.62%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.25%0.00%0.00%0.00%
Public15.29%15.34%15.67%15.68%15.22%15.11%14.98%14.76%14.32%15.07%14.60%14.60%
No. of Shareholders63,68372,11177,84281,12873,53680,30864,52071,25967,83767,81369,38380,278

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan3,855,3914.551751.48325,2042024-10-271085.53%
Axis Midcap Fund2,169,1064.01985.41325,2042024-10-27567%
HDFC Mid-Cap Opportunities Fund - Regular Plan1,916,2361.55870.54325,2042024-10-27489.24%
Nippon India Growth Fund1,204,8852.33547.37325,2042024-10-27270.5%
DSP Mid Cap Fund1,012,8452.74460.13325,2042024-10-27211.45%
Kotak Small Cap Fund - Regular Plan384,9191.24174.87325,2042024-10-2718.36%
Axis Growth Opportunities Fund325,2041.38147.74325,2042024-10-270%
PGIM India Midcap Opportunities Fund296,0281.34134.48325,2042024-10-27-8.97%
HSBC Midcap Fund283,3001.4128.7325,2042024-10-27-12.89%
UTI Mid Cap Fund235,6951.09107.08325,2042024-10-27-27.52%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)84.2168.1276.2477.0036.80
Diluted EPS (Rs.)84.2168.1276.2477.0036.80
Cash EPS (Rs.)99.2776.7878.2082.2550.52
Book Value[Excl.RevalReserv]/Share (Rs.)402.11346.49302.59249.45177.98
Book Value[Incl.RevalReserv]/Share (Rs.)402.11346.49302.59249.45177.98
Revenue From Operations / Share (Rs.)797.66724.25611.79500.36433.81
PBDIT / Share (Rs.)126.9696.7799.34101.4265.80
PBIT / Share (Rs.)103.4776.0481.2784.6749.61
PBT / Share (Rs.)102.2175.4180.8683.9248.02
Net Profit / Share (Rs.)75.7956.0560.1465.5034.33
NP After MI And SOA / Share (Rs.)84.2068.1176.2376.9936.79
PBDIT Margin (%)15.9113.3616.2320.2615.16
PBIT Margin (%)12.9710.4913.2816.9211.43
PBT Margin (%)12.8110.4113.2116.7711.06
Net Profit Margin (%)9.507.739.8213.097.91
NP After MI And SOA Margin (%)10.559.4012.4515.388.48
Return on Networth / Equity (%)20.9319.6525.1930.8620.67
Return on Capital Employeed (%)24.8821.1925.8432.4525.75
Return On Assets (%)16.3115.1919.3822.8412.91
Total Debt / Equity (X)0.000.000.000.000.18
Asset Turnover Ratio (%)1.651.821.761.671.65
Current Ratio (X)2.582.532.472.131.37
Quick Ratio (X)1.521.311.211.350.61
Inventory Turnover Ratio (X)4.934.865.374.564.51
Dividend Payout Ratio (NP) (%)33.2435.2330.166.4945.86
Dividend Payout Ratio (CP) (%)25.9927.0124.385.3331.85
Earning Retention Ratio (%)66.7664.7769.8493.5154.14
Cash Earning Retention Ratio (%)74.0172.9975.6294.6768.15
Interest Coverage Ratio (X)100.06153.30245.06135.6341.41
Interest Coverage Ratio (Post Tax) (X)60.7389.79149.3688.5922.60
Enterprise Value (Cr.)52526.2731164.4325433.0925118.6511215.11
EV / Net Operating Revenue (X)5.183.393.273.952.03
EV / EBITDA (X)32.5625.3520.1519.4913.42
MarketCap / Net Operating Revenue (X)5.303.473.344.072.00
Retention Ratios (%)66.7564.7669.8393.5054.13
Price / BV (X)10.517.256.758.174.88
Price / Net Operating Revenue (X)5.303.473.344.072.00
EarningsYield0.010.020.030.030.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Supreme Industries Ltd as of November 6, 2024 is: 4,884.31

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.

As of November 6, 2024, Supreme Industries Ltd is Undervalued by 6.18% compared to the current share price ₹4,600.00

Intrinsic Value of Supreme Industries Ltd as of November 6, 2024 is: 5,025.14

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 6, 2024, Supreme Industries Ltd is Undervalued by 9.24% compared to the current share price ₹4,600.00

Last 5 Year EPS CAGR: 2.88%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 31.58%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 29.92, which is a positive sign.
  3. The company has higher reserves (2,389.25 cr) compared to borrowings (255.67 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (5.54 cr) and profit (318.31 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 49.42, which may not be favorable.

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 Industries Ltd:
    1. Net Profit Margin: 9.5%
      • 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: 24.88% (Industry Average ROCE: 15.11%)
      • 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%: 20.93% (Industry Average ROE: 12.7%)
      • 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): 60.73
      • 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: 1.52
      • 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: 53.5 (Industry average Stock P/E: 46.1)
      • 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: 0
      • 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 - Qualitative Analysis

Supreme Industries Ltd. is a Public Limited Listed company incorporated on 17/02/1942 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L35920MH1942PLC003554 and registration number is 003554. Currently Company is involved in the business activities of Manufacture of plastics products. Company’s Total Operating Revenue is Rs. 7772.81 Cr. and Equity Capital is Rs. 25.41 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Plastics - Plastic & Plastic Products612, Raheja Chambers, Mumbai Maharashtra 400021investor@supreme.co.in
http://www.supreme.co.in
Management
NamePosition Held
Mr. B L TapariaChairman
Mr. M P TapariaManaging Director
Mr. S J TapariaExecutive Director
Mr. V K TapariaExecutive Director
Mr. R M PandiaDirector
Mr. R KannanDirector
Mr. Pulak PrasadDirector
Mr. Vipul ShahDirector
Ms. Ameeta ParpiaDirector
Mr. Sarthak BehuriaDirector

FAQ

What is the latest fair value of Supreme Industries Ltd?

The latest fair value of Supreme Industries Ltd is ₹4884.31.

What is the Market Cap of Supreme Industries Ltd?

The Market Cap of Supreme Industries Ltd is 58,365 Cr..

What is the current Stock Price of Supreme Industries Ltd as on 06 November 2024?

The current stock price of Supreme Industries Ltd as on 06 November 2024 is 4,600.

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

In FY 2024, the High / Low of Supreme Industries Ltd stocks is 6,482/3,601.

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

The Stock P/E of Supreme Industries Ltd is 53.5.

What is the Book Value of Supreme Industries Ltd?

The Book Value of Supreme Industries Ltd is 418.

What is the Dividend Yield of Supreme Industries Ltd?

The Dividend Yield of Supreme Industries Ltd is 0.65 %.

What is the ROCE of Supreme Industries Ltd?

The ROCE of Supreme Industries Ltd is 28.6 %.

What is the ROE of Supreme Industries Ltd?

The ROE of Supreme Industries Ltd is 21.7 %.

What is the Face Value of Supreme Industries Ltd?

The Face Value of Supreme Industries Ltd is 2.00.

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 Industries 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