Supreme Petrochem Reports Decline in Quarterly Profits Amid Bearish Market Trends

Supreme Petrochem, a midcap player in the chemicals industry, has recently reported flat financial results for the quarter ending September 2024. The company's profit before tax (PBT) stood at Rs 105.44 crore, reflecting a decline of 9.5% year-over-year. Similarly, the profit after tax (PAT) also fell by 9.5%, amounting to Rs 90.34 crore.
From a technical perspective, the stock is currently positioned within a bearish range, having experienced a deterioration in its trend. Since December 26, 2024, the stock has generated a return of -1.02%. Key technical indicators, including MACD, Bollinger Bands, and KST, suggest a bearish outlook.

Despite these challenges, Supreme Petrochem maintains strong long-term fundamentals, evidenced by an average return on equity (ROE) of 29.52% and a healthy operating profit growth rate of 43.01% annually. The company boasts a low debt-to-equity ratio, averaging at 0 times, and a fair valuation with a price-to-book ratio of 6.2. Over the past year, the stock has delivered a return of 25.96%, outperforming the BSE 500 index consistently over the last three years.