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Check Before You Invest : Supreme Petrochem Ltd

BSE: 500405 NSE: SPLPETRO ISIN: INE663A01033
  |   Sector:  Oil & Gas   |   Industry:  Petrochemicals

Snapshot

Q.1 Which industry/sub-sector does Supreme Petrochem Ltd belong to?
Supreme Petrochem Ltd belongs to the Oil & Gas sector, operating specifically within the Petrochemicals segment.
Q.2 Is Supreme Petrochem Ltd a good quality company?
Supreme Petrochem Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Supreme Petrochem Ltd undervalued or overvalued?
Supreme Petrochem Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Supreme Petrochem Ltd a good buy now?
Supreme Petrochem Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Supreme Petrochem Ltd?
Supreme Petrochem Ltd revenue growth is 15.6% for FY-2010 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.4% for FY-2010 , which is above its 5 year median of 3.7% , indicating increasing margins.
Q.3 Operating Profit Margin of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.67% for FY-2010 , which is above its 5 year median of 4.83% indicating increasing margins.
Q.4 Net Profit Margin of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Net Profit Margin is 3.76% for FY-2010 , is above with its 5 year median of 1.54%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 6.4 3.7
Operating Profit Margin 7.67 4.83
Net Profit Margin 3.76 1.54
Q.5 Return on Asset of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Return on Asset is 8.54%, which is above its 5 year historical median of 4.01%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Return on equity is 28.08% for FY-2010 , which is above its historical median of 12.73%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Return on capital employed is 29.85% for FY-2010 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Cash conversion cycle is 55 days, above its historical median of 38 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.43 2.71
ROE 28.08 12.73
ROCE 29.85 17.08
Cash Conversion Cycle 55 days 38 days
Q.9 Debt to Equity ratio of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.46 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Supreme Petrochem Ltd?
Supreme Petrochem Ltd Debt to cash flow from operations is 3.46 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Supreme Petrochem Ltd?
Promoters hold 64.24% of the Supreme Petrochem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Supreme Petrochem Ltd vs industry peers?
Supreme Petrochem Ltd revenue CAGR is 17.20% , compared to the industry median CAGR of 12.24% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,612.7 1,481.3
Gross Profit 103.2 93.5
Operating Profit 124 99
Net Profit 61 56
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.43 1.79
ROE 28.08 10.39
ROCE 29.85 13.99
Cash Conversion Cycle (days) 55.41 41

Valuation & price assessment

Q.1 Stock return of Supreme Petrochem Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 28% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 28% 24.5% 28% 21.9%
Q.3 Valuation ratios of Supreme Petrochem Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 239.68 20.85 37.80
Price to Book - 3.21 2.05
Price to Sales 9 0.95 1.35
EV to EBITDA 110.87 22.30 10.08

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