Stock Price Movement and Market Context
On 21 Jan 2026, Supreme Petrochem Ltd opened sharply lower with a gap down of -3.11%, reflecting immediate selling pressure. The stock’s intraday low of Rs.460.95 represented a decline of -9.16% from its previous close, setting a new 52-week low. Despite this, the stock managed to recover somewhat during the session, touching an intraday high of Rs.525.30, a gain of 3.52% from the open, and closing with a day change of +3.95%, outperforming its sector by 3.45%. This intraday volatility followed four consecutive days of declines, signalling a tentative trend reversal.
Supreme Petrochem is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing bearish momentum. The broader market context also remains subdued, with the Sensex opening lower at 81,794.65, down 0.47%, and continuing a three-week losing streak with a cumulative decline of -4.49%. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed medium-term signals.
Financial Performance and Recent Results
The stock’s decline to a 52-week low coincides with a series of disappointing financial results. Supreme Petrochem reported a fall in net sales by -6.85% in its December 2025 quarter, contributing to what MarketsMOJO categorises as very negative results. This marks the third consecutive quarter of negative earnings performance, with the latest quarterly profit after tax (PAT) at Rs.35.50 crores, down sharply by -53.8% compared to the previous four-quarter average.
Return on Capital Employed (ROCE) for the half-year period has dropped to a low of 18.01%, while cash and cash equivalents have declined to Rs.342.14 crores, the lowest level recorded in recent periods. These metrics highlight a contraction in profitability and liquidity, factors that have contributed to the stock’s subdued market valuation and downward price pressure.
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Long-Term Performance and Valuation Metrics
Over the past year, Supreme Petrochem Ltd has delivered a total return of -18.22%, significantly underperforming the Sensex, which gained 8.00% over the same period. The stock’s 52-week high was Rs.981.65, indicating a near 53% decline from its peak price. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the last three years, one year, and three months.
Despite recent setbacks, the company maintains some positive long-term fundamentals. It boasts an average Return on Equity (ROE) of 30.47%, reflecting strong profitability over time. Operating profit has grown at an annualised rate of 23.60%, and the company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure. The current ROE stands at 13.8, and the stock trades at a Price to Book Value of 4.3, suggesting an attractive valuation relative to its historical peer group.
However, the recent profit decline of -25.3% over the past year has weighed heavily on the stock’s near-term outlook, contributing to the downgrade in its MarketsMOJO Mojo Grade from Hold to Sell on 3 Nov 2025. The current Mojo Score stands at 40.0, reflecting a cautious stance based on the company’s recent financial trajectory and market performance.
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Shareholding and Sectoral Position
Supreme Petrochem Ltd operates within the petrochemicals industry and sector, which has experienced mixed performance amid fluctuating commodity prices and global demand uncertainties. The company’s majority shareholding remains with promoters, providing a stable ownership structure. However, the stock’s recent price action and financial results have reflected the broader challenges facing the sector, as well as company-specific earnings pressures.
While the stock has shown some resilience with a modest intraday recovery today, its position below all major moving averages and the recent downgrade in its Mojo Grade to Sell underscore the cautious market sentiment. The company’s market capitalisation grade stands at 3, indicating a mid-tier valuation relative to its peers.
Summary of Key Metrics
To summarise, Supreme Petrochem Ltd’s stock has reached a 52-week low of Rs.460.95, reflecting a significant correction from its 52-week high of Rs.981.65. The stock’s recent performance includes:
- One-year return of -18.22% versus Sensex’s +8.00%
- Three consecutive quarters of negative earnings results
- Quarterly PAT decline of -53.8% to Rs.35.50 crores
- ROCE at a low of 18.01% and cash reserves at Rs.342.14 crores
- Trading below all key moving averages
- Mojo Grade downgraded from Hold to Sell on 3 Nov 2025
These factors collectively illustrate the pressures on the stock’s valuation and underline the challenges faced by the company in the current market environment.
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