Supreme Petrochem Ltd Falls to 52-Week Low of Rs.516.8 Amidst Continued Downtrend

Stock Price Movement and Market Context

On the trading day, Supreme Petrochem Ltd’s shares opened flat but soon faced selling pressure, closing with a day’s low of Rs.516.8, down 3.24% intraday and ending with a 3.00% decline overall. The stock’s intraday high was Rs.562.1, representing a 5.24% rise from the previous close, but this was insufficient to offset the downward momentum. This marks the fourth consecutive day of losses, during which the stock has fallen by 8.05% cumulatively.

The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling persistent bearish sentiment. In comparison, the Sensex index, despite a negative close of 0.78% at 82,599.47 points, remains 4.31% below its 52-week high of 86,159.02. The Sensex itself has been on a three-week losing streak, down 3.69%, but Supreme Petrochem’s one-year performance of -19.95% starkly contrasts with the Sensex’s positive 7.18% return over the same period.

Financial Performance and Recent Results

The stock’s decline is closely linked to the company’s recent quarterly results, which showed notable contractions. For the quarter ended September 2025, Supreme Petrochem reported net sales of Rs.1,100.15 crore, a sharp decline of 24.6% compared to the average of the previous four quarters. Profit before tax excluding other income (PBT less OI) fell by 44.0% to Rs.56.30 crore, while net profit after tax (PAT) dropped by 44.8% to Rs.48.20 crore over the same comparative period.

This downturn in quarterly earnings has contributed to the stock’s downgrade in rating by MarketsMOJO, shifting from a Hold to a Sell grade on 3 Nov 2025, with a current Mojo Score of 43.0. The Market Cap Grade stands at 3, reflecting moderate market capitalisation relative to peers.

Long-Term Performance and Valuation Metrics

Over the longer term, Supreme Petrochem has struggled to keep pace with broader market indices and sector benchmarks. The stock has underperformed the BSE500 index across three years, one year, and three months, reflecting sustained pressure on returns. The one-year return of -19.95% contrasts with the Sensex’s positive 7.18% over the same timeframe.

Despite recent setbacks, the company maintains strong fundamental attributes. It boasts an average return on equity (ROE) of 30.47%, indicating efficient utilisation of shareholder capital. Operating profit has grown at an annualised rate of 23.60%, underscoring healthy long-term growth trends. Additionally, the company’s average debt-to-equity ratio remains at zero, highlighting a conservative capital structure with minimal leverage.

Valuation metrics also suggest the stock is trading at an attractive level relative to its fundamentals. With a ROE of 13.8% and a price-to-book value ratio of 4.5, Supreme Petrochem’s valuation is in line with historical averages and peer comparisons. However, profit declines of 25.3% over the past year have weighed on investor sentiment and share price performance.

Shareholding and Sectoral Position

The company operates within the petrochemicals industry and sector, where it faces competitive pressures and cyclical demand factors. Promoters remain the majority shareholders, maintaining significant control over corporate governance and strategic direction.

Summary of Key Market and Stock Indicators

Supreme Petrochem’s current market cap grade of 3 indicates a mid-tier market capitalisation relative to its sector peers. The stock’s recent four-day losing streak and 8.05% cumulative decline highlight ongoing downward pressure. Meanwhile, the broader Sensex index, despite recent weakness, remains above key long-term moving averages, contrasting with Supreme Petrochem’s position below all major moving averages.

The stock’s 52-week high of Rs.981.65, reached within the past year, underscores the extent of the recent correction, with the current price representing a decline of nearly 47.4% from that peak. This significant drop reflects the combined impact of quarterly earnings contractions, valuation adjustments, and sectoral headwinds.

Conclusion

Supreme Petrochem Ltd’s fall to a new 52-week low of Rs.516.8 on 20 Jan 2026 marks a notable point in its recent market journey. The stock’s performance has been influenced by declining quarterly sales and profits, a downgrade in rating to Sell by MarketsMOJO, and persistent underperformance relative to the Sensex and sector peers. While the company retains strong long-term fundamentals such as high ROE, operating profit growth, and a debt-free balance sheet, these factors have not yet translated into positive market momentum. The stock’s position below all key moving averages and its sustained price decline reflect ongoing challenges in regaining investor confidence.

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