Supreme Petrochem Gains 3.93%: 3 Key Factors Driving This Week’s Momentum

2 February 2026: Positive Start Despite Broader Market Weakness

Supreme Petrochem Ltd began the week on a strong footing, closing at Rs.583.55, up Rs.10.15 or 1.77% from the previous close. This gain was notable as the Sensex declined by 1.03% to 35,814.09 on the same day, indicating the stock’s early-week resilience. The volume of 8,848 shares traded suggested active participation, supporting the positive momentum despite a challenging market backdrop.

3 February 2026: Intraday High and Technical Momentum Shift

The stock’s standout performance came on 3 February, when it surged 7.75% to close at Rs.628.75, reaching an intraday high of Rs.625.25. This gain significantly outperformed the Sensex’s 2.63% rise and the Chemicals sector’s 4.08% advance, underscoring strong buying interest. The stock traded within a wide range of Rs.568.70 to Rs.609.90, reflecting heightened volatility and investor enthusiasm.

Technical indicators revealed a nuanced momentum shift. While the Moving Average Convergence Divergence (MACD) remained bearish on the weekly chart, it improved to mildly bearish on the monthly timeframe, suggesting a potential easing of downward pressure. The Relative Strength Index (RSI) hovered in neutral territory, indicating neither overbought nor oversold conditions. On-Balance Volume (OBV) readings were mildly bullish, hinting at gradual accumulation by institutional investors.

Despite these positive signals, the stock remained below its 50-day and 200-day moving averages, signalling that longer-term resistance levels had yet to be overcome. The MarketsMOJO Mojo Score stood at 38.0 with a Sell grade, reflecting cautious analyst sentiment amid the technical complexity.

4 February 2026: Valuation Recalibration Amid Market Sentiment Shift

On 4 February, Supreme Petrochem Ltd’s share price marginally increased by 0.20% to Rs.630.00, trading within a relatively narrow range of Rs.582.85 to Rs.633.50. However, the day was marked by a significant shift in valuation parameters. The company’s price-to-earnings (P/E) ratio stood at 43.42, prompting a downgrade in its valuation grade from attractive to fair. This adjustment reflected a moderation in price attractiveness amid evolving market dynamics.

Comparatively, peers such as Navin Fluorine International traded at a much higher P/E of 72.39, classified as very expensive, while Deepak Nitrite was rated expensive with a P/E of 42.4. Supreme Petrochem’s price-to-book value (P/BV) ratio of 5.31 and enterprise value to EBITDA (EV/EBITDA) of 28.05 positioned it as relatively balanced within the sector.

Operational metrics remained robust, with a return on capital employed (ROCE) of 20.05% and return on equity (ROE) of 12.23%. Dividend yield was modest at 1.59%. Despite these strengths, the MarketsMOJO Mojo Score deteriorated to 36.0 with a Sell rating, reflecting cautious analyst sentiment amid valuation concerns and recent price volatility.

5-6 February 2026: Profit Booking and Week Close

Following the strong gains earlier in the week, Supreme Petrochem Ltd experienced profit booking on 5 and 6 February. The stock declined 3.65% to Rs.607.00 on 5 February and further by 1.82% to Rs.595.95 on 6 February. These declines contrasted with the Sensex’s minor 0.53% drop on 5 February and a slight 0.10% gain on 6 February, indicating some decoupling from broader market trends.

Volumes during these sessions were moderate, with 2,831 shares traded on 5 February and 1,882 on 6 February, suggesting selective selling pressure. The stock’s weekly close at Rs.595.95 represented a 3.93% gain over the week, outperforming the Sensex’s 1.51% rise. This performance highlighted the stock’s resilience despite short-term technical and valuation headwinds.

Daily Price Performance: Supreme Petrochem Ltd vs Sensex

Key Takeaways

Outperformance Amid Volatility: Supreme Petrochem Ltd outpaced the Sensex by 2.42% over the week, closing with a 3.93% gain despite midweek profit booking. This relative strength highlights the stock’s appeal in a mixed market environment.

Technical Momentum Mixed: The stock’s technical indicators shifted from bearish to mildly bearish, with volume trends suggesting cautious accumulation. However, resistance at longer-term moving averages remains a hurdle, and the Mojo Grade downgrade to Sell signals analyst caution.

Valuation Recalibration: The downgrade from attractive to fair valuation reflects a moderation in investor enthusiasm amid elevated P/E and P/BV ratios. While operational metrics remain solid, the premium multiples warrant careful consideration.

Sector and Market Context: Operating in the volatile petrochemical sector, Supreme Petrochem’s performance was supported by sector gains but tempered by broader market fluctuations. The stock’s ability to maintain gains despite these headwinds is notable.

Conclusion

Supreme Petrochem Ltd’s week was characterised by strong early gains driven by robust intraday performance and a technical momentum shift, followed by valuation adjustments and profit booking. The stock’s 3.93% weekly gain outperformed the Sensex’s 1.51% rise, underscoring its relative strength. However, the downgrade in Mojo Grade to Sell and the shift to a fair valuation grade highlight ongoing caution among analysts and investors. The stock remains in a consolidation phase with mixed technical signals, suggesting that while short-term momentum is positive, longer-term resistance and valuation concerns persist. Investors should monitor the stock’s ability to sustain gains above key moving averages and watch for further clarity in technical and fundamental indicators amid sector volatility.

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