Valuation Metrics and Recent Changes
As of 29 June 2026, Supreme Industries Ltd trades at ₹3,423.90, down 3.79% from the previous close of ₹3,558.65. The stock's 52-week range spans from ₹3,181.55 to ₹4,662.40, indicating a significant volatility band over the past year. The company’s price-to-earnings (P/E) ratio currently stands at 45.56, a decrease from levels that previously classified it as 'very expensive'. Similarly, the price-to-book value (P/BV) ratio is at 7.04, underscoring a still elevated but moderated valuation.
Other valuation multiples include an enterprise value to EBIT (EV/EBIT) of 38.13 and an EV to EBITDA of 27.62, both reflecting premium pricing relative to earnings. The EV to capital employed ratio is 7.66, while EV to sales is 3.82, suggesting that the market continues to price Supreme Industries at a premium compared to its sales and capital base.
Despite these high multiples, the company maintains robust profitability metrics, with a return on capital employed (ROCE) of 20.08% and return on equity (ROE) of 15.46%. The dividend yield remains modest at 1.05%, consistent with a growth-oriented stock profile.
Comparative Analysis with Industry Peers
When benchmarked against peers, Supreme Industries’ valuation appears more attractive than some competitors. For instance, Astral, another prominent player in the Plastic Products - Industrial sector, is rated as 'very expensive' with a P/E ratio of 72.17 and an EV/EBITDA of 36.95. Supreme’s lower multiples suggest a relative valuation discount, which may appeal to investors seeking exposure to the sector without the highest premium pricing.
However, the company’s PEG ratio remains at 0.00, indicating either a lack of meaningful earnings growth projections or data unavailability, which could be a cautionary signal for growth investors.
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Stock Performance Versus Market Benchmarks
Supreme Industries’ recent stock returns have underperformed the broader Sensex index over short-term horizons. The stock declined 2.89% over the past week and 5.20% over the last month, while the Sensex gained 0.80% in the same monthly period. Year-to-date, Supreme Industries has posted a modest 2.05% gain, outperforming the Sensex’s negative 9.53% return.
Over longer periods, the stock’s performance has been mixed. It has delivered a 9.69% return over three years, lagging the Sensex’s 22.42%, but outpaced the benchmark over five and ten years with returns of 62.26% and 289.88%, respectively, compared to the Sensex’s 45.68% and 192.07%. This long-term outperformance highlights the company’s ability to generate shareholder value despite recent volatility.
Mojo Score and Rating Update
MarketsMOJO assigns Supreme Industries a Mojo Score of 44.0, reflecting a cautious outlook. The company’s Mojo Grade was downgraded from 'Hold' to 'Sell' on 23 October 2025, signalling concerns about valuation and near-term price momentum. This downgrade aligns with the shift in valuation grading from 'very expensive' to 'expensive', suggesting that while the stock remains pricey, the market is beginning to price in potential risks or slower growth.
The mid-cap classification further emphasises the stock’s position as a sizeable but not large-cap entity, which may attract investors seeking growth opportunities with moderate liquidity and risk profiles.
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Implications for Investors
The recent valuation adjustments for Supreme Industries Ltd suggest a nuanced investment case. While the stock remains expensive by traditional metrics, the moderation from 'very expensive' to 'expensive' could indicate a more reasonable entry point for value-conscious investors. The company’s strong profitability ratios, including a ROCE above 20%, support the argument for sustainable operational efficiency.
However, the downgrade in Mojo Grade and the stock’s underperformance relative to the Sensex in the short term warrant caution. Investors should weigh the premium valuation against the company’s growth prospects and sector dynamics. The absence of a meaningful PEG ratio further complicates growth expectations, signalling the need for deeper fundamental analysis before committing capital.
Given the competitive landscape, with peers like Astral commanding even higher multiples, Supreme Industries may offer a comparatively attractive risk-reward profile within the Plastic Products - Industrial sector. Yet, the stock’s mid-cap status and recent price volatility suggest that it may be better suited for investors with a higher risk tolerance and a longer investment horizon.
Conclusion
Supreme Industries Ltd’s valuation shift reflects evolving market sentiment amid changing price-to-earnings and price-to-book ratios. While the stock remains expensive, the relative improvement in valuation grading and solid profitability metrics provide a tempered optimism for investors. The downgrade in Mojo Grade to 'Sell' and recent price declines highlight the importance of cautious appraisal in the current market environment. Ultimately, the stock’s long-term performance and sector positioning may reward patient investors who can navigate near-term volatility.
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