NSEI:SUPREMEIND

Stock Analysis Report

Executive Summary

The Supreme Industries Limited manufactures and sells plastic products primarily in India.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SUPREMEIND's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.4%

SUPREMEIND

6.7%

IN Chemicals

9.3%

IN Market


1 Year Return

-21.0%

SUPREMEIND

-7.2%

IN Chemicals

-24.1%

IN Market

Return vs Industry: SUPREMEIND underperformed the Indian Chemicals industry which returned -10% over the past year.

Return vs Market: SUPREMEIND exceeded the Indian Market which returned -26.5% over the past year.


Shareholder returns

SUPREMEINDIndustryMarket
7 Day6.4%6.7%9.3%
30 Day-25.7%-13.5%-12.6%
90 Day-25.7%-14.6%-24.1%
1 Year-19.4%-21.0%-3.2%-7.2%-22.6%-24.1%
3 Year-14.0%-17.6%19.1%11.8%-10.9%-15.8%
5 Year39.8%30.6%73.9%58.9%0.3%-4.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Supreme Industries undervalued compared to its fair value and its price relative to the market?

23.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUPREMEIND (₹893.6) is trading above our estimate of fair value (₹496.96)

Significantly Below Fair Value: SUPREMEIND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUPREMEIND is poor value based on its PE Ratio (23.9x) compared to the Chemicals industry average (8.3x).

PE vs Market: SUPREMEIND is poor value based on its PE Ratio (23.9x) compared to the Indian market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: SUPREMEIND is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SUPREMEIND is overvalued based on its PB Ratio (5.1x) compared to the IN Chemicals industry average (0.9x).


Next Steps

Future Growth

How is Supreme Industries forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUPREMEIND's forecast earnings growth (16.1% per year) is above the savings rate (6.5%).

Earnings vs Market: SUPREMEIND's earnings (16.1% per year) are forecast to grow slower than the Indian market (19.5% per year).

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

Revenue vs Market: SUPREMEIND's revenue (12% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: SUPREMEIND's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUPREMEIND's Return on Equity is forecast to be high in 3 years time (22.8%)


Next Steps

Past Performance

How has Supreme Industries performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUPREMEIND has high quality earnings.

Growing Profit Margin: SUPREMEIND's current net profit margins (8.4%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: SUPREMEIND's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: SUPREMEIND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUPREMEIND had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Chemicals industry average (9.6%).


Return on Equity

High ROE: SUPREMEIND's Return on Equity (21.2%) is considered high.


Next Steps

Financial Health

How is Supreme Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SUPREMEIND's short term assets (₹14.2B) exceed its short term liabilities (₹10.4B).

Long Term Liabilities: SUPREMEIND's short term assets (₹14.2B) exceed its long term liabilities (₹1.4B).


Debt to Equity History and Analysis

Debt Level: SUPREMEIND's debt to equity ratio (13.5%) is considered satisfactory.

Reducing Debt: SUPREMEIND's debt to equity ratio has reduced from 61.4% to 13.5% over the past 5 years.

Debt Coverage: SUPREMEIND's debt is well covered by operating cash flow (187.3%).

Interest Coverage: SUPREMEIND's interest payments on its debt are well covered by EBIT (23.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUPREMEIND's dividend (1.57%) is higher than the bottom 25% of dividend payers in the Indian market (0.89%).

High Dividend: SUPREMEIND's dividend (1.57%) is low compared to the top 25% of dividend payers in the Indian market (3.79%).


Stability and Growth of Payments

Stable Dividend: SUPREMEIND's dividends per share have been stable in the past 10 years.

Growing Dividend: SUPREMEIND's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.8%), SUPREMEIND's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUPREMEIND's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.7yrs

Average board tenure


CEO

Mahaveer Prasad Taparia (82yo)

no data

Tenure

₹87,100,000

Compensation

Mr. Mahaveer Prasad Surajmal Taparia, B.A., serves as a Managing Director of The Supreme Industries Limited. Mr. Taparia serves as the Non Executive Chairman at Supreme Petrochem Limited. He has a wide exp ...


CEO Compensation Analysis

Compensation vs Market: Mahaveer Prasad's total compensation ($USD1.15M) is above average for companies of similar size in the Indian market ($USD649.42K).

Compensation vs Earnings: Mahaveer Prasad's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Mahaveer Prasad Taparia
MD & Directorno data₹87.10m0.59% 643.4m
Shivratan Taparia
Executive Director42.83yrs₹86.90m0.55% 604.4m
Vivek Taparia
Senior GM - Business Development & Executive Director35.5yrsno data0.21% 225.2m
Bhupendranath Bhargava
Independent Non-Executive Director23.58yrs₹1.25m0.010% 11.2m
Yogendra Trivedi
Independent Non-Executive Director16.67yrs₹1.80m0.016% 17.2m
Bajranglal Taparia
Non Executive Chairmanno data₹1.25m0.29% 315.5m
Ramanathan Kannan
Independent Non-Executive Director5.58yrs₹1.40m0.0058% 6.4m
Rajeev Pandia
Independent Non-Executive Director5.58yrs₹1.70mno data
Sarthak Behuria
Additional Independent Director0.92yrno datano data
Ameeta Parpia
Additional Independent Director0.92yrno data0.0012% 1.3m

16.7yrs

Average Tenure

78yo

Average Age

Experienced Board: SUPREMEIND's board of directors are seasoned and experienced ( 16.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SUPREMEIND insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: The Supreme Industries Limited
  • Ticker: SUPREMEIND
  • Exchange: NSEI
  • Founded: 1942
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹109.084b
  • Shares outstanding: 127.03m
  • Website: https://www.supreme.co.in

Location

  • The Supreme Industries Limited
  • 1161 & 1162 Solitaire Corporate Park
  • Building No. 11, 6th Floor, 167, Guru Hargovindji Marg
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
509930BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1995
SUPREMEINDNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1995

Biography

The Supreme Industries Limited manufactures and sells plastic products primarily in India. The company offers a range of molded plastic furniture products, including chairs, trolleys, center and dining tables, sofa, stools, etc.; material handling and storage products, such as small bins, super jumbo crates, injection molded and roto molded pallets and garbage bins, vacuum formed crates, P.P. corrugated sheet boxes and crates, and recyclable packaging; and petrochemical products comprising general purpose, high impact, specialty, and modified polystyrene. It also provides XF films and products consisting of multilayered cross laminated, U.V. stabilized plastic films under the SILPAULIN brand for use in various agricultural, industrial, and covering applications; and co-extruded multi-layer barrier films. In addition, the company offers protective packaging products, such as thermoplastic PE foam sheets and profiles, cross-linked and blended PE foams, air bubble films and composites, and EPDM and other specialty rubber foams, as well as corrosion resistant, anti-static, UV resistant, and metal laminated foams and bubble films; expansion joint filers and anti-seismic foams for commercial and residential buildings; and insulation products for various industries. Further, it provides plastic piping systems comprising uPVC pipes, injection molded PVC and handmade fittings, polypropylene random co-polymer pipe systems, HDPE pipe systems, CPVC pipes systems, and inspection chambers and manholes, as well as toilets bath fittings, roto molded tanks and fittings, and solvents. Additionally, the company offers composite LPG cylinders and industrial components. It also exports its plastic products. The Supreme Industries Limited was founded in 1942 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 13:23
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.