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

Fundamental Analysis of Supreme Petrochem Ltd

Basic Stock Data

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

Market Cap 14,948 Cr.
Current Price 796
High / Low821/409
Stock P/E46.1
Book Value 107
Dividend Yield1.13 %
ROCE22.5 %
ROE16.8 %
Face Value 2.00
PEG Ratio1.63

Competitors of Supreme Petrochem Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Signet Industries Ltd 257 Cr. 87.397.4/42.516.6 74.80.57 %14.6 %7.24 % 10.0
NOCIL Ltd 4,482 Cr. 269298/20433.7 1021.12 %11.1 %8.18 % 10.0
Kothari Petrochemicals Ltd 811 Cr. 138170/74.012.7 41.90.91 %41.9 %29.2 % 10.0
Manali Petrochemicals Ltd 1,650 Cr. 96.096.8/55.973.7 61.70.78 %4.38 %2.13 % 5.00
Sheela Foam Ltd 10,395 Cr. 9561,370/85462.9 2690.00 %9.07 %7.31 % 5.00
Industry Average2,880.16 Cr237.4067.1185.471.04%15.15%10.37%7.29

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,2691,0481,1911,2961,4981,4851,2351,1801,3871,2251,2781,1881,563
Expenses9538501,0151,0721,1901,2341,1561,0611,1791,1351,1711,0931,388
Operating Profit316197176224307252791192089010695175
OPM %25%19%15%17%21%17%6%10%15%7%8%8%11%
Other Income685891212142118161619
Interest2121111111232
Depreciation10101111101111111414141516
Profit before tax311194168221305252781212159410692177
Tax %26%25%24%25%26%25%24%26%26%26%26%27%26%
Net Profit2321461271652251896090159697868132
EPS in Rs12.327.786.768.7511.9910.063.184.788.473.684.153.606.99

Last Updated: June 9, 2024, 10:58 pm

Quarterly Chart

Profit & Loss - Annual Report

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

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,9673,2642,6532,0682,9193,0273,1942,7243,1855,0325,2875,253
Expenses2,8103,1752,5591,9642,6212,8303,1002,5762,5104,1264,6264,787
Operating Profit157909310429719693148675907661467
OPM %5%3%4%5%10%6%3%5%21%18%12%9%
Other Income463378101216305968
Interest242317555468767
Depreciation282924172221233639424759
Profit before tax11044568527817976118644888667468
Tax %34%31%37%33%35%35%35%13%26%25%25%26%
Net Profit7331365717911649103477663498346
EPS in Rs3.761.581.852.969.306.022.555.3225.4035.2826.4918.43
Dividend Payout %33%47%41%51%24%37%59%52%30%26%42%49%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)214.04%-35.20%-57.76%110.20%363.11%38.99%-24.89%-30.52%
Change in YoY Net Profit Growth (%)0.00%-249.23%-22.56%167.96%252.90%-324.11%-63.88%-5.64%

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:35%
5 Years:43%
3 Years:37%
1 Year:73%
Return on Equity
10 Years:30%
5 Years:34%
3 Years:42%
Last Year:28%

Last Updated: April 13, 2024, 9:20 am

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

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

Free Cash Flow

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow82.0058.0093.00104.00297.00196.0093.00119.00634.00870.00644.00353.00

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 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%

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

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Small Cap Fund - Regular Plan3,388,1501.43189.6282024-06-1912100435.71%
HSBC Value Fund777,4000.443.5282024-06-192776328.57%
ICICI Prudential Smallcap Fund329,8710.2618.46282024-06-191178010.71%
Motilal Oswal Nifty Microcap 250 Index Fund72,0390.654.03282024-06-19257182.14%
ICICI Prudential S&P BSE 500 ETF7140.020.04282024-06-192450%
HDFC S&P BSE 500 Index Fund1340.020.01282024-06-19378.57%
HDFC S&P BSE 500 ETF280.020282024-06-190%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.004.0010.0010.00
Basic EPS (Rs.)18.4326.4970.5450.6310.64
Diluted EPS (Rs.)18.4326.4970.5450.6310.64
Cash EPS (Rs.)21.5928.9775.0054.9514.38
Book Value[Excl.RevalReserv]/Share (Rs.)107.3898.06161.20113.2669.81
Book Value[Incl.RevalReserv]/Share (Rs.)107.3898.06161.20113.2669.81
Dividend / Share (Rs.)9.009.007.2015.005.50
Revenue From Operations / Share (Rs.)279.37281.17535.23338.77282.49
PBDIT / Share (Rs.)28.4538.1399.5473.4116.64
PBIT / Share (Rs.)25.2835.6695.0969.2512.90
PBT / Share (Rs.)24.9035.4694.4368.4712.23
Net Profit / Share (Rs.)18.4326.4970.5450.7810.64
PBDIT Margin (%)10.1813.5618.5921.665.88
PBIT Margin (%)9.0512.6817.7620.444.56
PBT Margin (%)8.9112.6117.6420.214.32
Net Profit Margin (%)6.599.4213.1814.993.76
Return on Networth / Equity (%)17.1627.0143.7644.8415.24
Return on Capital Employeed (%)21.9435.4956.8257.4216.94
Return On Assets (%)11.3018.2329.1127.208.17
Long Term Debt / Equity (X)0.040.000.000.000.00
Total Debt / Equity (X)0.050.000.000.000.00
Asset Turnover Ratio (%)1.812.112.502.122.20
Current Ratio (X)2.232.412.482.201.66
Quick Ratio (X)1.691.642.051.681.17
Inventory Turnover Ratio (X)5.776.798.745.556.51
Dividend Payout Ratio (NP) (%)0.0033.9723.387.8768.00
Dividend Payout Ratio (CP) (%)0.0031.0622.007.2750.33
Earning Retention Ratio (%)0.0066.0376.6292.1332.00
Cash Earning Retention Ratio (%)0.0068.9478.0092.7349.67
Interest Coverage Ratio (X)74.07200.52149.9994.9324.70
Interest Coverage Ratio (Post Tax) (X)48.98140.30107.2966.6816.81
Enterprise Value (Cr.)11307.826625.888246.183825.671074.92
EV / Net Operating Revenue (X)2.151.251.641.200.39
EV / EBITDA (X)21.149.248.815.546.70
MarketCap / Net Operating Revenue (X)2.231.321.731.230.45
Retention Ratios (%)0.0066.0276.6192.1231.99
Price / BV (X)5.803.785.743.691.86
Price / Net Operating Revenue (X)2.231.321.731.230.45
EarningsYield0.020.070.070.120.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 838.06

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: 5.28% compared to the current price 796

Intrinsic Value: 1,074.48

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: 34.98% compared to the current price ₹796

Last 5 Year EPS CAGR: 28.21%

*Investments are subject to market risks

Strength and Weakness

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 (793.08 cr) compared to borrowings (28.75 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (3.08 cr) and profit (301.08 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 4.17, 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 Petrochem Ltd:
    1. Net Profit Margin: 6.59%
      • 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: 21.94% (Industry Average ROCE: 14.51%)
      • 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%: 17.16% (Industry Average ROE: 9.43%)
      • 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): 48.98
      • 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: 1.69
      • 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: 46.1 (Industry average Stock P/E: 73.18)
      • 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: 0.05
      • 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 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

FAQ

What is the latest fair value of Supreme Petrochem Ltd?

The latest fair value of Supreme Petrochem Ltd is ₹838.06.

What is the Market Cap of Supreme Petrochem Ltd?

The Market Cap of Supreme Petrochem Ltd is 14,948 Cr..

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

The current stock price of Supreme Petrochem Ltd as on 21 June 2024 is ₹796.

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

In FY 2024, the High / Low of Supreme Petrochem Ltd stocks is 821/409.

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

The Stock P/E of Supreme Petrochem Ltd is 46.1.

What is the Book Value of Supreme Petrochem Ltd?

The Book Value of Supreme Petrochem Ltd is 107.

What is the Dividend Yield of Supreme Petrochem Ltd?

The Dividend Yield of Supreme Petrochem Ltd is 1.13 %.

What is the ROCE of Supreme Petrochem Ltd?

The ROCE of Supreme Petrochem Ltd is 22.5 %.

What is the ROE of Supreme Petrochem Ltd?

The ROE of Supreme Petrochem Ltd is 16.8 %.

What is the Face Value of Supreme Petrochem Ltd?

The Face Value of Supreme Petrochem 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 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