Price Movement and Market Context
On the trading day, Supreme Petrochem Ltd opened with a gap down of -3.11%, reflecting immediate selling pressure. The stock’s intraday range was wide, hitting a high of Rs.525.30, which represented a 3.52% gain from the previous close, before plunging to the day’s low of Rs.460.95, a sharp decline of -9.16%. Despite this volatility, the stock managed to outperform its sector by 3.45% by the close, indicating some resilience relative to peers.
Notably, Supreme Petrochem is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. This technical positioning underscores the challenges the stock has faced over the past year.
The broader market environment has also been challenging. The Sensex opened lower at 81,794.65, down 385.82 points (-0.47%), and was trading at 81,908.39 (-0.33%) during the session. The index has been on a three-week losing streak, declining by -4.49%, with the 50-day moving average below the 200-day average, indicating a cautious market sentiment.
Financial Performance and Earnings Trends
Supreme Petrochem’s recent financial disclosures have been underwhelming. The company reported a decline in net sales by -6.85% in the quarter ended December 2025, contributing to what MarketsMOJO categorises as very negative results. This marks the third consecutive quarter of negative earnings results, a trend that has weighed heavily on investor confidence.
Profit after tax (PAT) for the quarter stood at Rs.35.50 crores, down by -53.8% compared to the average of the previous four quarters. This sharp contraction in profitability has been a key factor in the stock’s downward trajectory.
Return on Capital Employed (ROCE) for the half-year period has also declined to a low of 18.01%, reflecting reduced efficiency in capital utilisation. Cash and cash equivalents have fallen to Rs.342.14 crores, the lowest level recorded in recent periods, which may constrain the company’s financial flexibility.
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Long-Term and Relative Performance
Over the past year, Supreme Petrochem 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.
In addition to the one-year underperformance, the stock has lagged behind the broader BSE500 index over the last three years, one year, and three months, highlighting persistent challenges in maintaining competitive returns.
The company’s Market Capitalisation Grade stands at 3, reflecting its mid-tier market cap status within the petrochemicals sector. The Mojo Score has deteriorated to 40.0, with a Mojo Grade downgraded from Hold to Sell as of 3 Nov 2025, signalling a cautious stance on the stock’s near-term prospects.
Fundamental Strengths Amidst Challenges
Despite recent setbacks, Supreme Petrochem retains some fundamental strengths. The company boasts a strong long-term average Return on Equity (ROE) of 30.47%, indicating robust profitability over extended periods. Operating profit has grown at an annualised rate of 23.60%, reflecting healthy underlying business growth.
Additionally, the company maintains a low average Debt to Equity ratio of zero, underscoring a conservative capital structure with minimal leverage. The current ROE stands at 13.8, paired with an attractive Price to Book Value ratio of 4.3, suggesting the stock is trading at a valuation in line with its historical peer group.
However, it is important to note that profits have declined by -25.3% over the past year, which has contributed to the recent price weakness.
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Shareholding and Sectoral Positioning
The majority shareholding in Supreme Petrochem Ltd remains with promoters, providing a stable ownership structure. The company operates within the petrochemicals industry and sector, which has experienced mixed performance amid fluctuating commodity prices and global demand uncertainties.
While the stock’s recent price action reflects the challenges faced, the company’s long-term fundamentals and conservative financial policies remain notable features in its profile.
Summary
Supreme Petrochem Ltd’s decline to a 52-week low of Rs.460.95 on 21 Jan 2026 is a culmination of subdued quarterly earnings, declining profitability, and broader market pressures. The stock’s technical indicators remain weak, trading below all major moving averages, while its financial results have shown contraction in sales and profits over recent quarters. Despite these headwinds, the company’s long-term return metrics and low leverage provide some context to its valuation and market standing.
Investors and market participants will continue to monitor the stock’s performance in relation to sector trends and broader market movements as it navigates this challenging phase.
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