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Check Before You Invest : Superior Industrial Enterprises Ltd

BSE: 519234 NSE: ISIN: INE843L01012
  |   Sector:  Paper & Stationary   |   Industry:  Paper & Paper Products

Snapshot

Q.1 Which industry/sub-sector does Superior Industrial Enterprises Ltd belong to?
Superior Industrial Enterprises Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.
Q.2 Is Superior Industrial Enterprises Ltd a good quality company?
Superior Industrial Enterprises Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Superior Industrial Enterprises Ltd undervalued or overvalued?
Superior Industrial Enterprises Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 34.14 52.12
Price to Book 0.41 1.10
Price to Sales 3.14 4.95
EV to EBITDA 22.28 37.90
Q.4 Is Superior Industrial Enterprises Ltd a good buy now?
Superior Industrial Enterprises Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd revenue growth is -2.3% for FY-2025, which is below its 5-year CAGR of 14.56%, indicating slower growth.

Q.2 Gross Profit margin of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.1% for FY-2025, which is in line with its 5-year median of 9.1%, indicating stable margins.

Q.3 Operating Profit Margin of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.75% for FY-2025, which is below its 5-year median of 8.3% indicating decreasing margins.

Q.4 Net Profit Margin of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Net Profit Margin is 6.12% for FY-2025, is in line with its 5-year median of 6.17%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.1 9.1
Operating Profit Margin (%) 7.75 8.3
Net Profit Margin (%) 6.12 6.17

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Return on Asset is 0.83%, which is below its 5-year historical median of 1.32%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Return on capital employed is 1.14% for FY-2025, which is below its 5-year historical median of 1.71%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Return on equity is 0.87% for FY-2025, which is below its 5-year historical median of 1.45%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Cash conversion cycle is 65 days, above its 5-year historical median of 43 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.14 0.2
ROE (%) 0.87 1.45
ROCE (%) 1.14 1.71
Cash Conversion Cycle 65 days 43 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.48, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Superior Industrial Enterprises Ltd?
Superior Industrial Enterprises Ltd Debt to cash flow from operations is 0.61, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Superior Industrial Enterprises Ltd?

Q.1 Promoter shareholding and pledge status of Superior Industrial Enterprises Ltd?
Promoters hold 47.15% of the Superior Industrial Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Superior Industrial Enterprises Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Superior Industrial Enterprises Ltd vs industry peers?
Superior Industrial Enterprises Ltd revenue CAGR is 14.56%, compared to the industry median CAGR of 5.29%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -2.3 5.3
Gross Profit Growth (%) -50.2 3.9
Operating Profit Growth (%) -54.7 0.8
Net Profit Growth (%) -57.5 1.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.14 0.91
ROE (%) 0.87 4.81
ROCE (%) 1.14 7.06
Cash Conversion Cycle (days) 65.03 47

Valuation & price assessment

Q.1 Stock return of Superior Industrial Enterprises Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
12.3% 8.1% -17.9% -41.5%
Q.2 Valuation ratios of Superior Industrial Enterprises Ltd vs historical?
The current P/E ratio of 34.14 is lower than its historical median of 52.12, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 34.14 52.12 11.02
Price to Book 0.41 1.10 0.91
Price to Sales 3.14 4.95 0.72
EV to EBITDA 22.28 37.90 6.12

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