Supreme Infrastructure India Ltd Falls to 52-Week Low Amidst Continued Downtrend

Stock Price Movement and Market Context

On 12 Feb 2026, Supreme Infrastructure India Ltd’s share price declined by 4.80% intraday, hitting the new low of Rs.79.85. The stock opened with a gap down of 2.24% and has now recorded losses for two consecutive trading sessions, cumulatively falling 6.05% over this period. Notably, the stock has experienced erratic trading patterns, having not traded on three days out of the last twenty, indicating reduced liquidity or investor engagement.

The stock’s performance today notably underperformed the construction sector by 4.6%, signalling relative weakness within its industry peers. Furthermore, Supreme Infrastructure is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a sustained downtrend in price momentum.

In contrast, the broader market benchmark, the Sensex, opened lower by 265.21 points (-0.42%) and is currently trading at 83,878.35. Despite this minor setback, the Sensex remains close to its 52-week high of 86,159.02, just 2.72% away, and has recorded a three-week consecutive rise with a 2.87% gain. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a generally positive medium-term market trend.

Long-Term Price Performance and Valuation Metrics

Over the past year, Supreme Infrastructure India Ltd’s stock has declined by 27.08%, a stark contrast to the Sensex’s 10.12% gain over the same period. The stock’s 52-week high was Rs.132.55, highlighting the extent of the recent price erosion. This underperformance is further emphasised when compared to the BSE500 index, which has delivered a 12.64% return in the last year, while Supreme Infrastructure has generated negative returns.

The company’s market capitalisation grade stands at 4, reflecting its relatively modest size and market presence within the construction sector. The Mojo Score assigned to the stock is 9.0, with a Mojo Grade of Strong Sell as of 8 Jan 2025, upgraded from a previous Sell rating. This grading reflects the stock’s deteriorating fundamentals and valuation concerns.

Financial Performance and Fundamental Concerns

Supreme Infrastructure India Ltd has reported negative financial results for four consecutive quarters, reflecting ongoing challenges in revenue generation and profitability. The company’s net sales for the nine months ended stand at Rs.43.98 crores, representing a decline of 32.81% year-on-year. Correspondingly, the net profit after tax (PAT) for the same period is a loss of Rs.932.01 crores, also down by 32.81% compared to the previous year.

The company’s return on capital employed (ROCE) for the half-year period is negative at -0.66%, indicating inefficiencies in capital utilisation. Additionally, Supreme Infrastructure’s EBITDA remains negative, further highlighting the financial strain the company is experiencing.

Long-term growth prospects appear subdued, with net sales having contracted at an annualised rate of 25.58% over the past five years. The company’s debt profile is significant, with an average debt-to-equity ratio of 4.17 times, underscoring a high leverage position that may constrain financial flexibility.

Promoter shareholding is a notable factor, with 63.87% of promoter shares pledged. This elevated level of pledged shares can exert additional downward pressure on the stock price, particularly in volatile or declining markets.

Trading and Valuation Risks

The stock’s trading pattern has been erratic, with multiple non-trading days in recent weeks, which may reflect lower market interest or liquidity constraints. Valuation metrics suggest the stock is trading at levels considered risky relative to its historical averages. Despite the negative price trend, the company’s profits have marginally increased by 2.8% over the past year, though this has not translated into positive stock performance.

Supreme Infrastructure’s underperformance relative to both the Sensex and the BSE500 index highlights the challenges faced by the company in regaining investor confidence and market share within the construction sector.

Summary of Key Metrics

To summarise, Supreme Infrastructure India Ltd’s stock has reached a new 52-week low of Rs.79.85, reflecting a sustained downtrend amid weak financial results and high leverage. The company’s net sales and profitability have contracted significantly over recent periods, with negative returns on capital and negative EBITDA compounding valuation concerns. The stock’s underperformance relative to the Sensex and sector peers, combined with a high proportion of pledged promoter shares, contributes to the current price weakness.

While the broader market continues to show resilience, Supreme Infrastructure’s share price remains under pressure, trading below all major moving averages and exhibiting erratic trading behaviour. These factors collectively illustrate the challenges faced by the company in the current market environment.

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