Supreme Holdings & Hospitality Ltd Falls to 52-Week Low of Rs.64.95

Stock Performance and Market Context

On the trading day, Supreme Holdings & Hospitality Ltd’s share price touched an intraday low of Rs.64.95, representing a 6.41% drop from the previous close. The stock has now recorded losses for three consecutive sessions, cumulatively falling by 10.06% over this period. This decline notably outpaced the Realty sector’s underperformance, with the stock lagging the sector by 4.8% today.

The stock’s current price is substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. The 52-week high for Supreme Holdings & Hospitality Ltd was Rs.115.19, highlighting the extent of the recent depreciation.

Meanwhile, the broader market has also experienced pressure. The Sensex opened 183.12 points lower and closed down by 408.83 points at 84,369.19, a 0.7% decline. Despite this, the Sensex remains within 2.12% of its 52-week high of 86,159.02. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for the broader market.

Financial and Operational Indicators

Supreme Holdings & Hospitality Ltd’s financial metrics continue to reflect challenges. The company’s return on equity (ROE) stands at a modest 4.68%, indicating limited profitability relative to shareholders’ funds. This figure has contributed to the stock’s downgrade from a ‘Sell’ to a ‘Strong Sell’ rating as of 16 Dec 2025, with a current Mojo Score of 26.0, underscoring weak market sentiment.

Over the past five years, the company’s net sales have declined at an annualised rate of 13.35%, while operating profit has contracted sharply by 174.49%. The latest quarterly results for September 2025 showed a profit before tax (PBT) less other income of negative Rs.0.72 crore, a fall of 116.71% compared to the prior period. These figures highlight ongoing difficulties in generating sustainable earnings growth.

Risk Profile and Valuation Concerns

The stock’s risk profile remains elevated, with profits declining by 72.3% over the past year. This has contributed to the stock’s underperformance relative to the BSE500 index across multiple timeframes, including the last three years, one year, and three months. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status and associated volatility.

Despite these challenges, the company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure with minimal leverage. Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.

Long-Term Performance and Sector Comparison

Supreme Holdings & Hospitality Ltd’s one-year stock return of -29.91% contrasts sharply with the Sensex’s positive 7.96% return over the same period. This divergence emphasises the stock’s relative weakness within the Realty sector and the broader market. The company’s long-term growth trajectory has been subdued, with negative sales and operating profit trends over the last five years.

Summary of Key Metrics

The company’s downgrade to a ‘Strong Sell’ rating reflects its current financial and market challenges. The Mojo Grade change on 16 Dec 2025 from ‘Sell’ to ‘Strong Sell’ was driven by deteriorating profitability and weak sales growth. The stock’s recent price action, including the 52-week low of Rs.64.95, underscores the market’s cautious stance.

While the company’s low debt levels provide some balance sheet stability, the persistent decline in operating profits and negative returns over multiple periods highlight ongoing concerns. The stock’s underperformance relative to the Sensex and Realty sector benchmarks further illustrates the hurdles faced by Supreme Holdings & Hospitality Ltd.

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