Super Tannery Ltd is Rated Strong Sell

Rating Context and Current Position

The rating for Super Tannery Ltd was revised to Strong Sell on 18 November 2025, reflecting a significant decline in the company’s overall Mojo Score, which dropped by 15 points from 32 to 17. This adjustment signals a cautious stance for investors, indicating that the stock currently exhibits considerable risks and challenges. It is important to note that while the rating change date is fixed, all financial data, returns, and fundamental indicators referenced here are current as of 07 January 2026, ensuring an up-to-date evaluation of the stock’s status.

Quality Assessment

As of 07 January 2026, Super Tannery Ltd’s quality grade remains below average. The company’s long-term fundamental strength is weak, with an average Return on Capital Employed (ROCE) of just 7.13%. This figure suggests that the company is generating modest returns relative to the capital invested, which may not be sufficient to attract long-term investors seeking robust profitability. Additionally, the company’s net sales have grown at an annual rate of 11.11% over the past five years, while operating profit has increased by 14.65% annually. Although these growth rates indicate some expansion, they are not strong enough to offset other financial weaknesses.

Valuation Perspective

From a valuation standpoint, Super Tannery Ltd is currently rated as very attractive. This suggests that the stock is trading at a price level that could be considered a bargain relative to its earnings, assets, or cash flows. However, an attractive valuation alone does not guarantee a positive investment outcome, especially when other factors such as financial health and technical trends are unfavourable. Investors should weigh this valuation advantage against the broader risks highlighted in other parameters.

Financial Trend Analysis

The company’s financial trend is negative as of 07 January 2026. Key indicators reveal deteriorating profitability and operational challenges. For instance, the Profit After Tax (PAT) for the latest quarter stands at ₹0.69 crore, marking a sharp decline of 64.9% compared to the previous four-quarter average. Net sales for the quarter are at their lowest level of ₹62.15 crore, and Profit Before Tax excluding other income (PBT less OI) has also dropped to ₹0.53 crore, the lowest in recent quarters. Furthermore, the company’s debt servicing capacity is strained, with a high Debt to EBITDA ratio of 3.39 times, indicating elevated leverage and potential liquidity concerns.

Technical Outlook

Technically, the stock is in a bearish phase. As of 07 January 2026, the share price has declined by 0.75% on the day, with more pronounced losses over longer periods: -4.35% over the past week, -1.35% in the last month, -21.43% over three months, and -26.83% in six months. The year-to-date return is negative at -4.35%, and the stock has delivered a steep -44.54% return over the past year. This sustained downward momentum reflects weak investor sentiment and confirms the technical grade of bearishness.

Comparative Performance and Market Position

Super Tannery Ltd’s performance has lagged behind broader market benchmarks such as the BSE500 index. The stock has underperformed over multiple time horizons, including the last three years, one year, and three months. This underperformance, combined with weak fundamentals and a negative financial trend, reinforces the rationale behind the Strong Sell rating. Investors should be cautious, as the stock’s current trajectory suggests continued challenges ahead.

What the Strong Sell Rating Means for Investors

The Strong Sell rating assigned to Super Tannery Ltd by MarketsMOJO indicates that the stock is expected to underperform the market and carries significant downside risk. This rating is based on a comprehensive evaluation of four key parameters: quality, valuation, financial trend, and technicals. While the valuation appears attractive, the company’s weak quality metrics, deteriorating financial health, and bearish technical outlook outweigh this positive aspect.

For investors, this rating suggests a cautious approach. It may be prudent to avoid initiating new positions in the stock or consider reducing existing exposure until there are clear signs of improvement in the company’s fundamentals and market sentiment. The current environment reflects operational challenges, declining profitability, and sustained price weakness, all of which contribute to the negative outlook.

Summary of Key Metrics as of 07 January 2026

To recap, the latest data shows:

• Mojo Score: 17.0 (Strong Sell grade)


• Return on Capital Employed (ROCE): 7.13%


• Debt to EBITDA ratio: 3.39 times


• Quarterly PAT: ₹0.69 crore, down 64.9%


• Quarterly Net Sales: ₹62.15 crore, lowest recent level


• Stock returns: -44.54% over 1 year, -26.83% over 6 months


• Technical trend: Bearish with consistent price declines

These figures collectively underpin the Strong Sell rating and highlight the risks currently associated with Super Tannery Ltd’s stock.

Looking Ahead

Investors monitoring Super Tannery Ltd should watch for improvements in profitability, debt management, and sales growth as potential catalysts for a more favourable rating in the future. Until such developments materialise, the stock remains a high-risk proposition within the diversified consumer products sector.

Conclusion

In conclusion, Super Tannery Ltd’s Strong Sell rating reflects a comprehensive assessment of its current financial and market position as of 07 January 2026. Despite an attractive valuation, the company’s weak quality, negative financial trends, and bearish technical signals present significant challenges. Investors are advised to exercise caution and consider the risks carefully before engaging with this stock.

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