Supreme Petrochem Falls 7.09% Amid Earnings Pressure and Quality Downgrade

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Supreme Petrochem Ltd’s stock declined by 7.09% over the week ending 23 January 2026, underperforming the Sensex which fell 3.31%. The stock hit fresh 52-week lows amid continued earnings pressure, margin compression, and a downgrade in its quality grade, reflecting a challenging environment for the petrochemical company despite some long-term fundamental strengths.




Key Events This Week


19 Jan: Stock opens at Rs.534.10, down 1.05%


20 Jan: Hits 52-week low of Rs.516.8 amid sustained downtrend


21 Jan: New 52-week low of Rs.460.95 despite intraday volatility


22 Jan: Quality grade downgraded to good; stock closes at Rs.521.45


23 Jan: Week closes at Rs.501.50, down 0.31% on the day





Week Open
Rs.539.75

Week Close
Rs.501.50
-7.09%

Week High
Rs.534.10

vs Sensex
-3.78%



Monday, 19 January 2026: Weak Start Amid Broader Market Decline


Supreme Petrochem Ltd opened the week at Rs.534.10, down 1.05% from the previous Friday’s close of Rs.539.75. The decline came alongside a 0.49% drop in the Sensex to 36,650.97, reflecting a cautious market mood. The stock’s volume was modest at 6,599 shares, signalling limited buying interest as the broader market showed early signs of weakness.



Tuesday, 20 January 2026: Stock Hits 52-Week Low on Earnings Concerns


The stock fell sharply to a fresh 52-week low of Rs.516.8 intraday, closing at Rs.507.45, a 4.99% decline on the day. This marked the continuation of a four-day losing streak, with the stock down 8.05% cumulatively. The decline was driven by the company’s Q3 FY26 results, which revealed a 24.6% drop in net sales and a 44.8% fall in net profit after tax compared to the previous four-quarter average. Margin compression was a key factor, triggering investor caution. The Sensex also declined by 1.82% to 35,984.65, but Supreme Petrochem’s underperformance was more pronounced.




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Wednesday, 21 January 2026: New 52-Week Low Amid Volatility


On 21 January, Supreme Petrochem’s shares opened lower by 3.11% and experienced significant intraday volatility. The stock touched a high of Rs.525.30 but plunged to a new 52-week low of Rs.460.95, a 9.16% intraday drop. Despite this, it closed at Rs.528.65, posting a positive day change of 4.18%, outperforming its sector by 3.45%. The broader Sensex continued its decline, closing down 0.47% at 35,815.26. The company’s earnings pressure persisted, with a 6.85% decline in net sales and a 53.8% drop in PAT for the latest quarter. Cash reserves also fell to Rs.342.14 crore, the lowest in recent periods, signalling liquidity concerns.



Thursday, 22 January 2026: Quality Grade Downgrade Amidst Mixed Fundamentals


Supreme Petrochem’s quality grade was downgraded from excellent to good, reflecting concerns over slowing EBIT growth despite strong long-term returns. The stock closed at Rs.521.45, down 1.36% on the day but showing some recovery from the previous session’s lows. The downgrade was accompanied by a Mojo Grade shift from Hold to Sell, with a current Mojo Score of 33.0. While the company maintains a conservative capital structure and strong ROE of 30.47%, the decline in earnings growth and recent stock underperformance have tempered investor sentiment.




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Friday, 23 January 2026: Week Closes Lower on Continued Selling


The stock closed the week at Rs.501.50, down 3.83% on the day and 7.09% for the week. Volume was thin at 2,477 shares, indicating subdued trading interest. The Sensex also declined by 1.33% to 35,609.90, marking a third consecutive weekly loss. Supreme Petrochem’s sustained underperformance relative to the benchmark index highlights ongoing challenges amid earnings pressure and cautious investor sentiment.



















































Date Stock Price Day Change Sensex Day Change
2026-01-19 Rs.534.10 -1.05% 36,650.97 -0.49%
2026-01-20 Rs.507.45 -4.99% 35,984.65 -1.82%
2026-01-21 Rs.528.65 +4.18% 35,815.26 -0.47%
2026-01-22 Rs.521.45 -1.36% 36,088.66 +0.76%
2026-01-23 Rs.501.50 -3.83% 35,609.90 -1.33%



Key Takeaways


Negative Earnings and Margin Pressure: The company’s Q3 FY26 results revealed significant declines in sales and profits, with net sales down 24.6% and PAT falling 44.8% compared to prior averages. This earnings pressure has been a primary driver of the stock’s downward trajectory.


Technical Weakness and Volatility: The stock traded below all key moving averages throughout the week, signalling sustained bearish momentum. The sharp intraday swings on 21 January highlight investor uncertainty amid volatile market conditions.


Quality Grade Downgrade: The downgrade from excellent to good quality grade and the Mojo Grade shift to Sell reflect concerns about slowing EBIT growth and earnings consistency, despite strong long-term ROE and low leverage.


Underperformance vs Sensex: The stock’s 7.09% weekly decline notably outpaced the Sensex’s 3.31% fall, underscoring relative weakness amid a broadly negative market environment.


Long-Term Fundamentals Remain Solid: Despite recent setbacks, Supreme Petrochem maintains a strong long-term ROE of 30.47%, zero debt, and healthy operating profit growth, which provide a foundation for potential recovery when earnings stabilise.



Conclusion


Supreme Petrochem Ltd’s share price faced significant headwinds this week, falling to new 52-week lows amid disappointing quarterly results and a downgrade in its quality assessment. The stock’s underperformance relative to the Sensex and sector peers reflects ongoing challenges in earnings growth and margin sustainability. While the company’s long-term fundamentals such as strong ROE and conservative capital structure remain intact, the near-term outlook is clouded by profit declines and volatile trading. Investors should monitor upcoming earnings and operational developments closely to assess any shift in momentum for this petrochemical stock.






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