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Supreme Industries Limited
(SUPREMEIND)
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Rating:68Neutral
Price Target:
₹3,761.00
▲(8.72% Upside)
Action:Reiterated
Date:10/26/26
The score is driven primarily by strong underlying financial quality (notably the very low leverage and solid profitability), supported by a generally constructive earnings-call outlook with maintained FY2027 growth and margin guidance. These positives are tempered by high valuation (P/E ~41.7 with ~1.0% yield), mixed cash-flow consistency, and a weaker technical trend with the price below major moving averages.
Positive Factors
Very low leverage
Extremely low leverage gives Supreme Industries substantial financial flexibility through operating or investment cycles. The conservative capital structure reduces interest burden and refinancing exposure, while allowing the company to fund capacity expansion and pursue growth without relying heavily on additional debt.
Negative Factors
Margin pressure
The sustained decline in net margin shows that profitability has not kept pace with the company’s longer-term revenue growth. Continued margin normalization could limit earnings compounding, reduce the benefit of higher volumes, and leave results more sensitive to product mix and input-cost movements.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Extremely low leverage gives Supreme Industries substantial financial flexibility through operating or investment cycles. The conservative capital structure reduces interest burden and refinancing exposure, while allowing the company to fund capacity expansion and pursue growth without relying heavily on additional debt.
Read all positive factors
Supreme Industries Limited (SUPREMEIND) vs. iShares MSCI India ETF (INDA)
Market Cap
₹407.50B
Dividend Yield1.15%
Average Volume (3M)19.05K
Price to Earnings (P/E)36.1
Beta (1Y)0.75
Revenue Growth16.64%
EPS Growth33.27%
CountryIN
Employees6,081
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Miscellaneous
Share Statistics
EPS (TTM)81.27
Shares Outstanding127,026,870
10 Day Avg. Volume35,784
30 Day Avg. Volume19,055
Financial Highlights & Ratios
PEG Ratio-69.85
Price to Book (P/B)7.71
Price to Sales (P/S)4.24
P/FCF Ratio105.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹4,235.00Price Target Upside22.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)94.09
Revenue Forecast (FY)₹130.64B
Supreme Industries Limited Business Overview & Revenue Model
Company Description
The Supreme Industries Limited, established in Mumbai, India, in 1942, is a prominent manufacturer and seller of a diverse array of plastic goods, primarily operating within India but also engaged in exports. Its extensive product range encompasse...
How the Company Makes Money
Supreme Industries makes money primarily by manufacturing and selling plastic/polymer products to distributors, retailers, contractors, and industrial customers across India. Its key revenue streams typically come from: (1) Plastic piping systems—...
Supreme Industries Limited Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 25, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by strong first-half revenue and profit growth, robust Q2 piping and industrial-product performance, 38% growth in value-added product turnover, improving October piping momentum, planned capacity expansion, and maintained FY2027 revenue and margin guidance. However, the company faced weaker consumer and packaging volumes, packaging margin contraction, Q2 margins below 13%, reduced piping growth guidance, high raw-material prices, and continued weakness in Nal Se Jal. Overall, the positive operating momentum and outlook outweighed the stated challenges.Positive Updates
Strong First-Half Revenue and Profit Growth
For the first half of FY2027, the company sold 341,991 tons of plastic goods versus 338,224 tons in the corresponding period last year, representing about 1% volume growth. Revenue from operations increased to INR 6,079 crores from INR 5,003 crores, representing 22% product value growth. Stand-alone operating profit rose 34% to INR 829 crores, while profit after tax increased 31% to INR 487 crores.
Negative Updates
Consumer Products Volume Declined
Consumer product segment volume decreased 14% in Q2, although value increased 2%. Management attributed the weakness to high polypropylene prices, local polypropylene supply being affected by capacity diversion toward LPG production, and competition from chairs made with repurposed material, which the company does not use.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong First-Half Revenue and Profit Growth
For the first half of FY2027, the company sold 341,991 tons of plastic goods versus 338,224 tons in the corresponding period last year, representing about 1% volume growth. Revenue from operations increased to INR 6,079 crores from INR 5,003 crores, representing 22% product value growth. Stand-alone operating profit rose 34% to INR 829 crores, while profit after tax increased 31% to INR 487 crores.
Read all positive updates
Company Guidance
For fiscal year 2027, the company expects company-wide volume growth of around 10%, piping business volume growth of 13%, consolidated business to grow between INR 13,500 crore to INR 14,000 crore, and operating margin between 14%-14.5%; pipe margin has to be 14%, 14.5% or maybe slightly better, while cash outflow for CapEx should not be more than INR 700 crore-INR 750 crore. The company also anticipates good growth for the full year in OPVC, with several new varieties to be introduced in the remaining six months.Supreme Industries Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
91
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 113.26B | 112.18B | 104.46B | 101.34B | 92.02B | 77.73B |
| Gross Profit | 29.91B | 26.49B | 32.44B | 32.24B | 25.61B | 23.83B |
| EBITDA | 17.94B | 16.99B | 14.51B | 15.60B | 12.16B | 12.56B |
| Net Income | 10.32B | 9.54B | 9.61B | 10.70B | 8.65B | 9.68B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 77.95B | 71.68B | 65.56B | 56.94B | 49.96B |
| Cash, Cash Equivalents and Short-Term Investments | 6.49B | 6.58B | 9.44B | 11.79B | 7.48B | 5.20B |
| Total Debt | 0.00 | 908.40M | 758.00M | 550.60M | 511.70M | 456.80M |
| Total Liabilities | -61.69B | 16.26B | 15.07B | 14.47B | 12.92B | 11.52B |
| Stockholders Equity | 61.69B | 61.69B | 56.60B | 51.09B | 44.02B | 38.44B |
Cash Flow | ||||||
| Free Cash Flow | -3.37B | 4.49B | 1.13B | 8.64B | 4.66B | 4.90M |
| Operating Cash Flow | 2.30B | 12.64B | 10.04B | 14.13B | 8.90B | 4.70B |
| Investing Cash Flow | -7.98B | -10.73B | -7.91B | -6.09B | -3.49B | -4.03B |
| Financing Cash Flow | -836.80M | -4.76B | -4.40B | -3.82B | -3.27B | -3.10B |
Supreme Industries Limited Technical Analysis
Negative
3459.25
Price Trends
3491.28
Negative
3454.96
Negative
3563.31
Negative
Market Momentum
-53.17
Positive
32.58
Neutral
12.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUPREMEIND, the sentiment is Negative. The current price of 3459.25 is above the 20-day moving average (MA) of 3456.44, below the 50-day MA of 3491.28, and below the 200-day MA of 3563.31, indicating a bearish trend. The MACD of -53.17 indicates Positive momentum. The RSI at 32.58 is Neutral, neither overbought nor oversold. The STOCH value of 12.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUPREMEIND.
Supreme Industries Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹407.50B | 36.08 | ― | 1.15% | 16.64% | 33.27% | |
66 Neutral | ₹57.26B | 28.21 | ― | 1.69% | 8.68% | -17.48% | |
66 Neutral | ₹88.11B | 14.26 | ― | 1.41% | -2.24% | 54.85% | |
61 Neutral | ₹28.66B | 28.09 | ― | 0.39% | 5.10% | 347.36% | |
58 Neutral | ₹23.81B | -260.41 | ― | 0.13% | -1.99% | -132.14% | |
57 Neutral | ₹366.14B | 63.71 | ― | 0.29% | 16.79% | 18.82% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:SUPREMEIND
Supreme Industries Limited
3,208.00
-566.00
-15.00%
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Supreme Industries Limited Corporate Events
Supreme Industries Publishes Q1 FY27 Financial Results in Leading Dailies
Jul 29, 2026
Supreme Industries Limited has published extracts of its unaudited consolidated and standalone financial results for the quarter ended 30 June 2026 in major newspapers, in line with SEBI’s disclosure regulations. The company reported total c...
Supreme Industries posts Q1 FY27 unaudited results, auditors complete limited review
Jul 28, 2026
Supreme Industries Limited has reported its unaudited standalone and consolidated financial results for the first quarter ended 30 June 2026, as approved by its Board of Directors on 28 July 2026. The company has also released a limited review rep...
Supreme Industries Delivers Strong Q1 Profit Growth Despite Lower Volumes
Jul 28, 2026
Supreme Industries reported its unaudited standalone and consolidated results for the quarter ended 30 June 2026, showing resilient profitability despite lower volumes. While standalone plastic goods sold fell 14.29% year-on-year, total income ros...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.