Rating Overview and Context
On 16 December 2025, MarketsMOJO revised the rating for Supreme Holdings & Hospitality Ltd from 'Sell' to 'Strong Sell', accompanied by a decrease in the Mojo Score from 31 to 26. This adjustment signals a more cautious stance on the stock, indicating heightened concerns about its near- and long-term outlook. The 'Strong Sell' rating suggests that investors should consider reducing or avoiding exposure to this microcap realty company given the current risk profile and performance indicators.
Here’s How the Stock Looks Today
As of 23 January 2026, Supreme Holdings & Hospitality Ltd continues to face significant challenges across multiple dimensions. The stock has delivered a disappointing return of -33.67% over the past year, underperforming broader market benchmarks such as the BSE500. Recent price movements show a marginal decline of 0.02% on the day, with weekly and monthly returns also deeply negative at -14.40% and -23.60% respectively. This persistent downward trend reflects ongoing investor concerns.
Quality Assessment
The company’s quality grade is assessed as average, but this masks underlying weaknesses in operational efficiency and profitability. The Return on Equity (ROE) stands at a low 4.68%, indicating that the company generates limited profit relative to shareholders’ funds. This level of profitability is insufficient to inspire confidence in the firm’s ability to create shareholder value over time. Furthermore, management efficiency appears poor, with no clear signs of improvement in recent quarters.
Valuation Considerations
Valuation metrics currently classify the stock as risky. The company’s operating profits have been negative, and the stock trades at valuations that are unfavourable compared to its historical averages. This elevated risk profile is compounded by a steep decline in profitability, with operating profits falling by 72.3% over the past year. Such financial strain raises questions about the sustainability of the business model and the potential for recovery in the near term.
Financial Trend Analysis
The financial trend for Supreme Holdings & Hospitality Ltd is flat, reflecting stagnation rather than growth. Over the last five years, net sales have contracted at an annualised rate of -13.35%, while operating profit has deteriorated dramatically by -174.49%. The latest quarterly results for September 2025 show a pre-tax loss (excluding other income) of ₹0.72 crore, a decline of 116.71%. These figures highlight a company struggling to generate positive cash flow and earnings momentum.
Technical Outlook
Technically, the stock is rated bearish. The price action over the past six months shows a decline of 19.03%, with sharper drops over shorter intervals such as three months (-30.19%) and one month (-23.60%). This downward momentum suggests weak investor sentiment and a lack of buying interest at current levels. The bearish technical grade reinforces the cautionary stance implied by the fundamental analysis.
Implications for Investors
The 'Strong Sell' rating from MarketsMOJO reflects a comprehensive evaluation of Supreme Holdings & Hospitality Ltd’s current challenges. Investors should interpret this rating as a signal to exercise caution, as the company’s financial health, valuation, and technical indicators collectively point to elevated risk and limited near-term upside. While the quality grade is average, the negative financial trends and bearish technical outlook outweigh any potential positives.
For those holding the stock, it may be prudent to reassess portfolio exposure and consider alternatives with stronger fundamentals and more favourable valuations. Prospective investors should approach with caution, given the company’s ongoing struggles and the lack of clear catalysts for recovery.
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Summary of Key Metrics as of 23 January 2026
To summarise, the stock’s key metrics paint a challenging picture:
- Market Capitalisation: Microcap segment, indicating limited liquidity and higher volatility
- Return on Equity: 4.68%, signalling low profitability
- Net Sales Growth (5 years): -13.35% annualised decline
- Operating Profit Growth (5 years): -174.49%, reflecting severe earnings deterioration
- Pre-Tax Profit (Sep 2025 quarter): Loss of ₹0.72 crore, down 116.71%
- Stock Returns: -33.67% over 1 year, with consistent negative returns across shorter timeframes
- Mojo Score: 26.0, corresponding to a 'Strong Sell' grade
These figures underscore the risks inherent in the stock and justify the current rating. Investors should weigh these factors carefully when making decisions regarding Supreme Holdings & Hospitality Ltd.
Looking Ahead
While the current outlook remains bleak, monitoring future quarterly results and any strategic initiatives by management will be important. Improvements in operational efficiency, a turnaround in sales growth, or a stabilisation of profitability could alter the company’s trajectory. Until such signs emerge, the 'Strong Sell' rating remains appropriate based on the comprehensive analysis of quality, valuation, financial trends, and technical factors.
Investors seeking exposure to the realty sector may wish to consider alternatives with stronger fundamentals and more positive momentum to better align with their risk tolerance and investment objectives.
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