NSEI:SUPREMEENG

Stock Analysis Report

Executive Summary

Supreme Engineering Limited manufactures and sells special alloys and special wire products.

Snowflake

Fundamentals

Mediocre balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Supreme Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

SUPREMEENG

0.9%

IN Metals and Mining

0.5%

IN Market


1 Year Return

-9.3%

SUPREMEENG

-31.9%

IN Metals and Mining

0.9%

IN Market

Return vs Industry: SUPREMEENG exceeded the Indian Metals and Mining industry which returned -31.9% over the past year.

Return vs Market: SUPREMEENG underperformed the Indian Market which returned 0.9% over the past year.


Share holder returns

SUPREMEENGIndustryMarket
7 Day-2.0%0.9%0.5%
30 Day-9.1%-4.2%1.0%
90 Day-34.0%-15.4%-3.2%
1 Year-7.6%-9.3%-29.0%-31.9%2.8%0.9%
3 Yearn/a0.04%-11.2%20.3%14.3%
5 Yearn/a4.6%-12.7%43.1%29.8%

Price Volatility Vs. Market

How volatile is Supreme Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Supreme Engineering undervalued based on future cash flows and its price relative to the stock market?

8.04x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: SUPREMEENG (₹24.5) is trading above our estimate of fair value (₹4.62)

Significantly Undervalued: SUPREMEENG is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: SUPREMEENG is good value based on its PE Ratio (8x) compared to the Metals and Mining industry average (8.3x).

PE vs Market: SUPREMEENG is good value based on its PE Ratio (8x) compared to the Indian market (13.1x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate SUPREMEENG's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: SUPREMEENG is overvalued based on its PB Ratio (1.2x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Supreme Engineering expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SUPREMEENG's forecast earnings growth (5.1% per year) is below the savings rate (7.6%).

Earnings vs Market: SUPREMEENG's earnings (5.1% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: SUPREMEENG's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if SUPREMEENG's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if SUPREMEENG's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if SUPREMEENG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Supreme Engineering performed over the past 5 years?

37.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SUPREMEENG's earnings have grown significantly by 37.7% per year over the past 5 years.

Accelerating Growth: SUPREMEENG's earnings growth over the past year (35.1%) is below its 5-year average (37.7% per year).

Earnings vs Industry: SUPREMEENG earnings growth over the past year (35.1%) exceeded the Metals and Mining industry 14.3%.


Return on Equity

High ROE: SUPREMEENG's Return on Equity (13.3%) is considered low.


Return on Assets

ROA vs Industry: SUPREMEENG's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: SUPREMEENG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Supreme Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: SUPREMEENG's short term assets (₹1.6B) exceeds its short term liabilities (₹1.2B)

Long Term Liabilities: SUPREMEENG's short term assets (₹1.6B) exceeds its long term liabilities (₹187.8M)


Debt to Equity History and Analysis

Debt Level: SUPREMEENG's debt to equity ratio (175.3%) is considered high

Reducing Debt: SUPREMEENG's debt to equity ratio has reduced from 457.1% to 175.3% over the past 5 years.

Debt Coverage: SUPREMEENG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SUPREMEENG's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: SUPREMEENG has a high level of physical assets or inventory.

Debt Coverage by Assets: SUPREMEENG's debt is covered by short term assets (assets are 1.802800x debt).


Next Steps

Dividend

What is Supreme Engineering's current dividend yield, its reliability and sustainability?

2.04%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.5%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SUPREMEENG's dividend (2.04%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: SUPREMEENG's dividend (2.04%) is low compared to the top 25% of dividend payers in the Indian market (2.46%).

Stable Dividend: Too early to tell whether SUPREMEENG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SUPREMEENG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.4%), SUPREMEENG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Supreme Engineering's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Pranav Chowdhri (22yo)

1.8yrs

Tenure

₹1,350,000

Compensation

Mr. Pranav Chowdhri has been Chief Executive Officer of Supreme Engineering Limited since December 1, 2017. Mr. Chowdhri has done his Bachelor of Technology (Mechanical Engineering)from SVKM’s Narsee Monje ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Pranav's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Insufficient data to compare Pranav's compensation with company performance.


Management Age and Tenure

1.8yrs

Average Tenure

28yo

Average Age

Experienced Management: SUPREMEENG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: SUPREMEENG's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Abhinav Chowdhri (30yo)

    Executive Director

    • Tenure: 1.8yrs
    • Compensation: ₹1.42m
  • Pranav Chowdhri (22yo)

    Chief Executive Officer

    • Tenure: 1.8yrs
    • Compensation: ₹1.35m
  • Sanjay Rattan Chowdhri (54yo)

    MD & Director

    • Tenure: 32.5yrs
    • Compensation: ₹2.31m
  • Krupali Thakkar (26yo)

    Company Secretary & Compliance Officer

    • Tenure: 1.8yrs
    • Compensation: ₹379.22k

Board Members

  • Lalita Chowdhri (52yo)

    Chairperson

    • Tenure: 1.8yrs
  • Abhinav Chowdhri (30yo)

    Executive Director

    • Tenure: 1.8yrs
    • Compensation: ₹1.42m
  • Sanjay Rattan Chowdhri (54yo)

    MD & Director

    • Tenure: 32.5yrs
    • Compensation: ₹2.31m
  • Prakash Deshmukh (65yo)

    Non-Executive Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹9.00k
  • Jayaraman Kannan (62yo)

    Non-Executive Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹18.00k

Company Information

Supreme Engineering Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Supreme Engineering Limited
  • Ticker: SUPREMEENG
  • Exchange: NSEI
  • Founded: 1987
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹612.378m
  • Shares outstanding: 25.00m
  • Website: https://www.supremesteels.com

Location

  • Supreme Engineering Limited
  • MIDC Complex
  • R-223
  • Navi Mumbai
  • Maharashtra
  • 400701
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUPREMEENGNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2018

Biography

Supreme Engineering Limited manufactures and sells special alloys and special wire products. Its Special Steels division manufactures special alloys, such as super alloys, precipitation hardening steels, m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 13:14
End of Day Share Price2019/10/11 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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