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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Supreme Petrochem Ltd

About the Company - Supreme Petrochem Ltd

Supreme Petrochem Ltd. is a Public Limited Listed company incorporated on 14/12/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L23200MH1989PLC054633 and registration number is 054633. Currently Company is involved in the business activities of Manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms. Company’s Total Operating Revenue is Rs. 5032.30 Cr. and Equity Capital is Rs. 37.61 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Petrochemicals - PolymersSolitaire Corporate Park, Building No. 11, 5th Floor, 167, Guru Hargovindji Marg, Mumbai Maharashtra 400093investorhelpline@spl.co.in
http://www.supremepetrochem.com
Management
NamePosition Held
Mr. M P TapariaChairperson
Mr. R KannanDirector
Ms. Ameeta ParpiaDirector
Dr. S SivaramDirector
Mr. Rajeev M PandiaDirector
Mr. K V MujumdarDirector
Mr. Rajan B RahejaDirector
Mr. B L TapariaDirector
Mr. S J TapariaDirector
Mr. M S RamachandranDirector

Supreme Petrochem Ltd. Share Price Update

Share PriceValue
Today₹623.80
Previous Day₹625.90

Basic Stock Data of Supreme Petrochem Ltd

Market Cap 13,766 Cr.
Current Price 732
High / Low758/351
Stock P/E36.7
Book Value 98.9
Dividend Yield1.11 %
ROCE37.4 %
ROE28.1 %
Face Value 2.00

Data Source: screener.in

Competitors of Supreme Petrochem Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sheela Foam Ltd 11,472 Cr. 1,0551,370/90667.1 2630.00 %13.6 %12.5 % 5.00
NOCIL Ltd 4,606 Cr. 276298/19938.4 99.01.07 %13.4 %9.89 % 10.0
Bhansali Engineering Polymers Ltd 2,464 Cr. 99.0118/58.016.2 35.83.00 %19.1 %13.3 % 1.00
Signet Industries Ltd 218 Cr. 74.190.0/32.213.2 71.80.67 %12.4 %6.48 % 10.0
Kothari Petrochemicals Ltd 746 Cr. 127170/54.412.1 37.60.99 %29.3 %21.9 % 10.0
Industry Average196.2 Cr115.4229.4101.441.15%17.56%12.81%7.2

Supreme Petrochem Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9301,2691,0481,1911,2961,4981,4851,2351,1801,3871,2251,2781,188
Expenses6909538501,0151,0721,1901,2341,1561,0611,1781,1351,1711,093
Operating Profit239316197176224307252791192099010695
OPM %26%25%19%15%17%21%17%6%10%15%7%8%8%
Other Income66858912121421181616
Interest2212111111123
Depreciation10101011111011111114141415
Profit before tax233311194168221305252781212169410692
Tax %26%26%25%24%25%26%25%24%26%26%26%26%27%
Net Profit1722321461271652251896090160697868
EPS in Rs9.1312.327.786.768.7511.9910.063.184.788.503.684.153.60

Supreme Petrochem Ltd Quarterly Chart

Supreme Petrochem Ltd Profit & Loss

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,2732,9673,2642,6532,0682,9193,0273,1942,7243,1855,0325,2875,077
Expenses2,1762,8103,1752,5591,9642,6212,8303,1002,5762,5104,1264,6264,577
Operating Profit96157909310429719693148675907661500
OPM %4%5%3%4%5%10%6%3%5%21%18%12%10%
Other Income4463378101216305970
Interest32242317555468766
Depreciation23282924172221233639424757
Profit before tax4611044568527817976118644888667507
Tax %31%34%31%37%33%35%35%35%13%26%25%25%
Net Profit317331365717911649103477663498375
EPS in Rs1.623.761.581.852.969.306.022.555.3225.4035.2826.4919.93
Dividend Payout %43%33%47%41%51%24%37%59%52%30%26%42%

Supreme Petrochem Ltd Profit & Loss Yearly Chart

Supreme Petrochem Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:12%
3 Years:25%
TTM:-6%
Compounded Profit Growth
10 Years:30%
5 Years:32%
3 Years:67%
TTM:-34%
Stock Price CAGR
10 Years:40%
5 Years:48%
3 Years:57%
1 Year:98%
Return on Equity
10 Years:30%
5 Years:34%
3 Years:42%
Last Year:28%

Supreme Petrochem Ltd Balance Sheet

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital97979696969696969694383838
Reserves2112562682803184865495465779711,4781,8061,822
Borrowings1427532000002941371779
Other Liabilities594601587505523548650578552649725870730
Total Liabilities1,0451,0289848819381,1301,2961,2211,2551,7552,2782,7312,669
Fixed Assets345366371345333337333331371359337527713
CWIP5631441013102489179108147
Investments000000111251135470484563447
Other Assets6446316085325957808426157419171,2791,5341,362
Total Assets1,0451,0289848819381,1301,2961,2211,2551,7552,2782,7312,669

Supreme Petrochem Ltd Reserves and Borrowings Chart

Supreme Petrochem Ltd Cash Flow

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 16612095808469213133119435671324
Cash from Investing Activity -84-22-3-5-5-25-15-27-7-64-140-149
Cash from Financing Activity -87-107-96-66-40-16-57-56-90-104-177-194
Net Cash Flow-5-9-5939271415022266354-19

Supreme Petrochem Ltd Financial Efficiency Indicators

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days394038335038363333443025
Inventory Days483122293746443140512955
Days Payable916860618365806074905066
Cash Conversion Cycle-42-01319-03-04814
Working Capital Days-1-013822125621920
ROCE %18%31%16%19%22%57%30%12%18%72%66%37%

Supreme Petrochem Ltd Financial Efficiency Indicators Chart

Supreme Petrochem Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters63.96%63.96%63.96%63.96%64.07%64.14%64.14%64.24%64.24%64.24%64.24%64.24%
FIIs1.24%1.72%1.89%2.07%2.05%2.13%2.20%2.14%2.12%2.00%1.99%2.46%
DIIs2.10%2.15%2.15%1.83%2.14%2.18%2.26%2.31%2.33%2.33%2.80%2.62%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.09%0.09%0.09%0.09%0.09%0.09%
Public32.70%32.17%32.01%32.14%31.74%31.55%31.31%31.21%31.22%31.35%30.86%30.59%
No. of Shareholders38,01056,76253,40852,67350,96249,36349,97749,06749,56349,46448,37048,830

Supreme Petrochem Ltd Shareholding Pattern Chart

No. of Supreme Petrochem Ltd Shareholders

Supreme Petrochem Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HSBC Small Cap Fund - Regular Plan33881501.43189.6
HSBC Value Fund7774000.443.5
ICICI Prudential Smallcap Fund3298710.2618.46
Motilal Oswal Nifty Microcap 250 Index Fund720390.654.03
ICICI Prudential S&P BSE 500 ETF7140.020.04
HDFC S&P BSE 500 Index Fund1340.020.01
HDFC S&P BSE 500 ETF280.020

Supreme Petrochem Ltd ROCE Trend

Supreme Petrochem Ltd EPS Trend

Supreme Petrochem Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.004.0010.0010.0010.00
Basic EPS (Rs.)26.4970.5450.6310.645.10
Diluted EPS (Rs.)26.4970.5450.6310.645.10
Cash EPS (Rs.)28.9775.0054.9514.387.51
Book Value[Excl.RevalReserv]/Share (Rs.)98.06161.20113.2669.8166.57
Book Value[Incl.RevalReserv]/Share (Rs.)98.06161.20113.2669.8166.57
Dividend / Share (Rs.)9.007.2015.005.503.00
Revenue From Operations / Share (Rs.)281.17535.23338.77282.49330.96
PBDIT / Share (Rs.)38.1399.5473.4116.6410.71
PBIT / Share (Rs.)35.6695.0969.2512.908.30
PBT / Share (Rs.)35.4694.4368.4712.237.89
Net Profit / Share (Rs.)26.4970.5450.7810.645.10
PBDIT Margin (%)13.5618.5921.665.883.23
PBIT Margin (%)12.6817.7620.444.562.50
PBT Margin (%)12.6117.6420.214.322.38
Net Profit Margin (%)9.4213.1814.993.761.54
Return on Networth / Equity (%)27.0143.7644.8415.247.65
Return on Capital Employeed (%)35.4956.8257.4216.9411.42
Return On Assets (%)18.2329.1127.208.174.03
Asset Turnover Ratio (%)2.112.502.122.202.54
Current Ratio (X)2.412.482.201.661.64
Quick Ratio (X)1.642.051.681.171.17
Inventory Turnover Ratio (X)6.798.745.556.517.03
Dividend Payout Ratio (NP) (%)33.9723.387.8768.00106.39
Dividend Payout Ratio (CP) (%)31.0622.007.2750.3372.23
Earning Retention Ratio (%)66.0376.6292.1332.00-6.39
Cash Earning Retention Ratio (%)68.9478.0092.7349.6727.77
Interest Coverage Ratio (X)200.52149.9994.9324.7026.47
Interest Coverage Ratio (Post Tax) (X)140.30107.2966.6816.8113.61
Enterprise Value (Cr.)6625.888246.183825.671074.922123.83
EV / Net Operating Revenue (X)1.251.641.200.390.66
EV / EBITDA (X)9.248.815.546.7020.55
MarketCap / Net Operating Revenue (X)1.321.731.230.450.67
Retention Ratios (%)66.0276.6192.1231.99-6.39
Price / BV (X)3.785.743.691.863.37
Price / Net Operating Revenue (X)1.321.731.230.450.67
EarningsYield0.070.070.120.080.02

Supreme Petrochem Ltd Profitability Ratios (%)

Supreme Petrochem Ltd Liquidity Ratios

Supreme Petrochem Ltd Liquidity Ratios (%)

Supreme Petrochem Ltd Interest Coverage Ratios (X)

Supreme Petrochem Ltd Valuation Ratios

Fair Value / Intrinsic Value of Supreme Petrochem Ltd

Fair Value: ₹1031.25

The stock is undervalued by 40.88% compared to the current price ₹732

*Investments are subject to market risks

Strength and Weakness of Supreme Petrochem Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 33.17%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 8.83, which is a positive sign.
  3. The company has higher reserves (736.00 cr) compared to borrowings (34.77 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (3.00 cr) and profit (284.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 47.69 and average Dividend Yield of 11.59%.
  2. The stock has a high average Cash Conversion Cycle of 4.17, which may not be favorable.

Should I Buy Supreme Petrochem Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Supreme Petrochem Ltd:
    1. Net Profit Margin: 9.42%
      • 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: 35.49% (Industry Average ROCE: 16.59%)
      • 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. Interest Coverage Ratio (Post Tax): 140.30
      • 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.
    4. Quick Ratio: 1.64
      • 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.
    5. ✓ Stock P/E: 37.0 (Industry average Stock P/E: 41.76)
      • 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.
    6. ✗ Total Debt / Equity: N/A
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Petrochem 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