Rating Overview and Context
On 23 October 2025, MarketsMOJO revised Supreme Industries Ltd’s rating from 'Hold' to 'Sell', reflecting a significant change in the company’s overall assessment. The Mojo Score, a composite indicator of quality, valuation, financial health, and technical factors, dropped by 23 points from 57 to 34. This shift signals a more cautious stance towards the stock, advising investors to consider reducing exposure or avoiding new positions.
Here’s How the Stock Looks Today
As of 11 February 2026, Supreme Industries Ltd remains a midcap player in the Plastic Products - Industrial sector. The company’s current Mojo Grade is firmly in the 'Sell' category, supported by a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals.
Quality Assessment
The company’s quality grade is classified as 'good', indicating that Supreme Industries maintains a reasonable operational foundation. However, this is tempered by concerns over growth and profitability. Over the past five years, operating profit has grown at a modest annual rate of just 2.52%, signalling limited expansion in core earnings. Additionally, the company has reported negative results for six consecutive quarters, highlighting ongoing challenges in sustaining profitability.
Valuation Considerations
Valuation is a critical factor behind the current rating, with Supreme Industries deemed 'very expensive'. The stock trades at a price-to-book value of 8.2, which is significantly higher than its peers’ historical averages. This premium valuation is not supported by commensurate earnings growth or returns, making the stock less attractive from a value perspective. Investors should be cautious given the elevated price levels relative to the company’s financial performance.
Financial Trend Analysis
The financial trend for Supreme Industries is negative, reflecting deteriorating profitability and returns. The company’s return on capital employed (ROCE) for the half-year stands at a low 18.37%, while profit before tax excluding other income (PBT less OI) has declined by 14.46% to ₹202.30 crores. Net profit after tax (PAT) has also fallen sharply by 18.0% to ₹153.37 crores. These figures indicate weakening earnings momentum and pressure on margins, which have contributed to the cautious rating.
Technical Outlook
Technically, the stock is rated as 'mildly bearish'. Recent price movements show a mixed picture: while the stock gained 4.68% over the past month and 9.04% year-to-date, it has declined by 5.93% over the last year and underperformed the BSE500 index over one, three, and three-month periods. The one-day and one-week changes are negative at -0.82% and -2.21% respectively, suggesting short-term selling pressure. This technical backdrop supports the recommendation to exercise caution.
Stock Returns and Relative Performance
As of 11 February 2026, Supreme Industries has delivered a one-year return of -5.93%, underperforming broader market benchmarks. Over six months, the stock declined by 15.98%, reflecting the challenges faced by the company. Despite a positive year-to-date return of 9.04%, the longer-term trend remains subdued. The company’s underperformance relative to the BSE500 index over multiple time frames further underscores the risks associated with holding this stock at current levels.
Implications for Investors
The 'Sell' rating from MarketsMOJO suggests that investors should approach Supreme Industries Ltd with caution. The combination of a very expensive valuation, negative financial trends, and a mildly bearish technical outlook indicates limited upside potential and elevated risk. While the company maintains a good quality grade, the lack of robust earnings growth and recent profit declines weigh heavily on the overall assessment.
For investors, this rating means that the stock may not be suitable for those seeking capital appreciation or stable income in the near term. It is advisable to review portfolio allocations and consider alternative opportunities with stronger fundamentals and more attractive valuations.
Fast mover alert! This Large Cap from Automobiles - Passeenger just qualified for our Momentum list with stellar technical indicators. Strike while the iron is hot!
- - Recent Momentum qualifier
- - Stellar technical indicators
- - Large Cap fast mover
Summary of Key Metrics
To summarise, as of 11 February 2026:
- Mojo Score: 34.0 (Sell Grade)
- Operating profit growth over 5 years: 2.52% annually
- ROCE (Half Year): 18.37%
- PBT less Other Income (Quarterly): ₹202.30 crores, down 14.46%
- PAT (Quarterly): ₹153.37 crores, down 18.0%
- Price to Book Value: 8.2 (Very Expensive)
- 1-Year Stock Return: -5.93%
- Recent Technical Grade: Mildly Bearish
These figures collectively justify the current 'Sell' rating, reflecting a stock that is overvalued relative to its earnings and facing headwinds in profitability and price momentum.
Looking Ahead
Investors should monitor Supreme Industries’ quarterly results and sector developments closely. Any improvement in earnings growth, valuation rationalisation, or technical strength could warrant a reassessment of the rating. Until then, the cautious stance remains prudent given the current data.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
