Understanding the Current Rating
The 'Strong Sell' rating assigned to Supreme Holdings & Hospitality Ltd indicates a cautious stance for investors, signalling significant concerns across multiple evaluation parameters. This rating is derived from a comprehensive assessment of the company's quality, valuation, financial trend, and technical outlook. It suggests that the stock is expected to underperform relative to the broader market and peers, and investors should consider this carefully when making portfolio decisions.
Here’s How the Stock Looks Today
As of 28 December 2025, Supreme Holdings & Hospitality Ltd remains a microcap player within the realty sector, with a Mojo Score of 26.0, reflecting a deterioration from its previous score of 31. The downgrade to a 'Strong Sell' rating on 16 December 2025 was driven by a five-point drop in this score, underscoring growing concerns about the company’s fundamentals and market performance.
Quality Assessment
The company’s quality grade is currently assessed as average. This is largely due to its poor management efficiency, as evidenced by a Return on Equity (ROE) of just 4.68%. This low ROE indicates that the company generates limited profitability from shareholders’ funds, which is a critical metric for evaluating management effectiveness and operational success. Investors typically favour companies with higher ROE figures, as they suggest better utilisation of capital and stronger earnings potential.
Valuation Considerations
Supreme Holdings & Hospitality Ltd is classified as risky from a valuation perspective. The stock trades at levels that are considered unfavourable compared to its historical averages, reflecting investor scepticism about its future earnings potential. The company’s negative operating profits further compound this risk, signalling that its core business operations are currently not generating sufficient income to cover costs. This valuation risk is a key factor behind the 'Strong Sell' rating, as it implies limited upside and heightened downside risk for shareholders.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade for Supreme Holdings & Hospitality Ltd is flat, reflecting stagnation and decline in key financial metrics. The company has experienced poor long-term growth, with net sales shrinking at an annual rate of -13.35% over the past five years. Operating profit has seen an even more dramatic decline, falling by -174.49% during the same period. The latest quarterly results for September 2025 show a PBT less other income of Rs -0.72 crore, a sharp fall of -116.71%, indicating continued operational challenges.
Over the past year, the stock has delivered a negative return of -21.83%, underperforming the broader BSE500 index across multiple time frames including one year, three years, and three months. This underperformance highlights the company’s struggles to generate shareholder value in both the short and long term.
Technical Outlook
The technical grade for the stock is bearish, reflecting negative momentum and downward price trends. Recent price movements show a 1-day decline of -3.67%, a 1-week drop of -7.36%, and a 1-month fall of -8.68%. The six-month and year-to-date returns are also deeply negative at -18.10% and -22.22% respectively. These trends suggest that market sentiment remains weak, with limited buying interest and persistent selling pressure.
Implications for Investors
For investors, the 'Strong Sell' rating serves as a cautionary signal. The combination of average quality, risky valuation, flat financial trends, and bearish technicals indicates that Supreme Holdings & Hospitality Ltd faces significant headwinds. The stock’s poor profitability, declining sales, and negative operating profits suggest that the company is struggling to stabilise its business and generate sustainable growth.
Investors should carefully weigh these factors against their risk tolerance and investment horizon. Those seeking capital preservation or growth may find more attractive opportunities elsewhere, given the current outlook. Conversely, speculative investors might monitor the stock for any signs of turnaround or improvement in fundamentals before considering entry.
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Summary
In summary, Supreme Holdings & Hospitality Ltd’s current 'Strong Sell' rating reflects a comprehensive evaluation of its present-day fundamentals and market performance as of 28 December 2025. The company’s average quality, risky valuation, flat financial trend, and bearish technical outlook collectively suggest that the stock is not favourable for investment at this time. Investors should remain cautious and monitor any future developments that could alter this outlook.
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