Supreme Industries Reports Decline in Profit and Sales Amid Market Challenges

Supreme Industries, a prominent player in the plastic products sector, has recently reported a decline in its financial performance, marking a significant shift after four consecutive quarters of growth. For the quarter ending September 2024, the company posted a profit after tax of Rs 206.60 crore, reflecting a decrease of 15% compared to previous results. Additionally, net sales fell to Rs 2,272.95 crore, the lowest recorded in recent times, while the profit before depreciation, interest, and taxes (PBDIT) also hit a low of Rs 319.23 crore.
Despite these challenges, Supreme Industries maintains a strong long-term fundamental position, evidenced by an average return on equity (ROE) of 23.02% and a low debt-to-equity ratio of 0.03 times. The company holds a significant market cap of Rs 60,427 crore, making it the largest in its sector and accounting for 28.03% of the industry. However, its stock performance has lagged behind the broader market, generating a return of just 5.01% over the past year, compared to the BSE 500's 16.93%. With high institutional holdings at 36.54%, the company continues to attract attention from larger investors.