Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for Supreme Petrochem Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was adjusted on 03 Nov 2025, reflecting a shift in the company’s outlook, but the detailed analysis below uses the most recent data available as of 09 January 2026 to provide an up-to-date perspective.
Quality Assessment: Strong Fundamentals Amidst Challenges
Supreme Petrochem Ltd maintains an excellent quality grade, signalling robust underlying business fundamentals. The company’s operational efficiency, product portfolio, and management effectiveness remain strong pillars. Despite recent setbacks, the quality of earnings and asset base continues to be a positive factor for long-term investors. This grade reflects the company’s ability to sustain its core operations and maintain competitive advantages in the petrochemicals sector.
Valuation: Attractive but Not Without Risks
The stock’s valuation grade is currently rated as attractive. This suggests that, based on price-to-earnings ratios, price-to-book values, and other valuation metrics, Supreme Petrochem Ltd is trading at levels that could offer value relative to its peers and historical averages. However, attractive valuation alone does not guarantee positive returns, especially when other factors such as financial trends and technical indicators are less favourable. Investors should weigh this valuation against the broader context of the company’s recent performance.
Financial Trend: Negative Momentum Evident
The financial grade for Supreme Petrochem Ltd is negative, reflecting deteriorating financial performance in recent quarters. As of 09 January 2026, the company reported a significant decline in profitability and sales. The latest quarterly results showed a PAT of ₹48.20 crores, down by 44.8% compared to the previous four-quarter average. Net sales for the quarter stood at ₹1,100.15 crores, marking the lowest level recorded recently, while PBDIT also fell to ₹77.54 crores, the lowest in recent periods. These figures highlight ongoing operational challenges and margin pressures that have weighed on investor sentiment.
Technical Analysis: Bearish Signals Dominate
From a technical perspective, the stock is currently graded as bearish. Price trends and momentum indicators point to sustained selling pressure. The stock has experienced a 0.98% decline in the last trading day and has underperformed over multiple time frames: down 9.18% in the past week, 12.89% in one month, and 26.35% over three months. Year-to-date returns are negative at 9.08%, and the stock has delivered an 11.50% loss over the past year. This technical weakness suggests that market participants remain cautious, with limited buying interest at current levels.
Performance Relative to Benchmarks
Supreme Petrochem Ltd’s recent underperformance is notable when compared to broader market indices such as the BSE500. Over the last three years, one year, and three months, the stock has consistently lagged behind the benchmark, indicating challenges in regaining investor confidence. This underperformance is compounded by the company’s negative financial trends and bearish technical outlook, reinforcing the rationale behind the current 'Sell' rating.
Implications for Investors
For investors, the 'Sell' rating serves as a cautionary signal. While the company’s excellent quality and attractive valuation may offer some long-term appeal, the prevailing negative financial trends and bearish technical indicators suggest that the stock may face further downside risks in the near term. Investors should carefully consider their risk tolerance and portfolio objectives before maintaining or increasing exposure to Supreme Petrochem Ltd at this juncture.
Outlook and Considerations
Looking ahead, the company’s ability to stabilise its financial performance and reverse technical weakness will be critical to improving its investment appeal. Monitoring upcoming quarterly results and sector developments will be essential for investors seeking to reassess the stock’s potential. Until then, the current 'Sell' rating reflects a prudent approach based on the comprehensive analysis of all relevant factors as of 09 January 2026.
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Summary
In summary, Supreme Petrochem Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 03 Nov 2025, is grounded in a thorough evaluation of the company’s present-day fundamentals and market position as of 09 January 2026. Despite strong quality and attractive valuation metrics, the negative financial trend and bearish technical outlook weigh heavily on the stock’s prospects. Investors should approach the stock with caution, recognising the risks highlighted by recent performance data and market sentiment.
Company Profile and Market Context
Supreme Petrochem Ltd operates within the petrochemicals sector and is classified as a small-cap company. The sector itself has faced volatility due to fluctuating raw material costs and global demand uncertainties. The company’s market capitalisation and sector positioning make it sensitive to both domestic and international economic factors, which are reflected in its recent financial and stock performance.
Stock Price Movement and Market Reaction
As of 09 January 2026, the stock price has declined by 0.98% on the day, continuing a trend of negative returns across multiple time frames. This persistent downward movement underscores the market’s cautious stance and the challenges the company faces in reversing its fortunes. The Mojo Score currently stands at 43.0, down from 61.0 prior to the rating update, reinforcing the 'Sell' recommendation.
Investor Takeaway
Investors should consider the comprehensive picture presented by the four key parameters evaluated by MarketsMOJO. While the company’s quality and valuation offer some positives, the financial and technical indicators suggest that the stock may not be well positioned for near-term gains. Portfolio managers and individual investors alike should weigh these factors carefully when making allocation decisions involving Supreme Petrochem Ltd.
Conclusion
Ultimately, the 'Sell' rating reflects a balanced and data-driven assessment of Supreme Petrochem Ltd’s current investment appeal. By focusing on the latest available data as of 09 January 2026, investors are equipped with a clear understanding of the stock’s strengths and vulnerabilities, enabling informed decision-making in a dynamic market environment.
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