Supreme Petrochem Ltd (SPL) is a big player in the petrochemical world in India. They’re not just big; they’re the top dog in Polystyrene, with over 50% of the market under their belt. But they don’t stop there. They’re also the country’s biggest exporter of Polystyrene (PS), sending their products to more than 100 countries worldwide.
In this article, we’re going to take a straightforward look at what the future might hold for SPL’s share prices. We’ll break down the reasons behind their success, check out the numbers that have driven them, and try to see where their share prices might be headed. No jargon, no complicated stuff – just a plain and simple guide to help you decide if investing in SPL is a good idea.
About Supreme Petrochem
Supreme Petrochem Ltd (SPL) is a prominent petrochemical company manufacturing Polystyrene, Styrenics Compounds, and Polymers. Their unwavering commitment to quality and innovation solidifies their leading industry position.
Their product range includes General Purpose Polystyrene, High Impact Polystyrene, Masterbatches, Styrene Methyl Methacrylate, Expandable Polystyrene, and more.
Operating advanced facilities in Amdoshi, Maharashtra, and Manali New Town, Tamil Nadu, they produce various petrochemical products, including Polystyrene, Expandable Polystyrene, Polymers, Compounds, and Extruded PS.
Boasting a commanding presence, the polystyrene segment proudly holds over 50% of the market share. They are the exclusive domestic producer of styrene methyl methacrylate and extruded PS foam board, reinforcing their market strength. In 2009, SPL initiated India’s inaugural and singular integrated facility for Extruded Polystyrene (XPS) Insulation foam boards. This groundbreaking move aimed to champion the Green Building movement in India and address the issue of CO2 emissions.
In FY21, a significant development occurred when LG Polymers India Ltd., India’s second-largest PS manufacturer, shut down due to a styrene vapor leakage incident in Vizag. This led to a remarkable 30% volume growth for SPL, filling the gap left by LG Polymers.
Supreme Petrochem Ltd (SPL) boasts a market capitalization of ₹9,246 Crores, reflecting its substantial presence in the petrochemical industry. As of now, the company’s stock is trading at ₹492 per share, indicating its current valuation in the market.
Q1 Fy2024 Key Points And Summary
- Supreme Petrochem Ltd reported operational income of Rs. 1,225 crores, with an EBITDA of Rs. 91 crores and a net profit after tax of Rs. 69 crores.
- During the same period, the company saw a 9% year-on-year increase in total sales volumes, while domestic sales volumes experienced a 4% decline.
- The company is making progress as scheduled on the implementation of the 1st Phase of the Mass ABS Project, which has a production capacity of 70,000 TPA.\
- A 20% quarter-on-quarter drop in Styrene monomer prices caused destocking and affected volumes and margins
- Despite a 4% YoY dip in domestic sales volumes, Supreme Petrochem Ltd witnessed an 8.7% YoY growth in total sales volumes, including exports.
Supreme Petrochem Share Price Target 2023 To 2030
Supreme Petrochem Share Price Target 2023
| When | Maximum Price | Minimum Price |
| December 2023 | ₹582.70 | ₹475.18 |
Throughout the year, the Supreme Petroleum share price is predicted to fluctuate, with September predicted to record the highest maximum price of ₹526.44, and November predicted to show the lowest maximum price of ₹506.00. On the other hand, December is predicted to mark the highest minimum price of ₹475.18, while October is expected to have the lowest minimum price of ₹469.20.
So, when we look at the overall picture for the predicted year, the maximum price is expected to peak at ₹582.70, and the minimum price is anticipated to dip to ₹345.
Supreme Petrochem Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹573.36 | ₹463.79 |
| February 2024 | ₹564.25 | ₹473.26 |
| March 2024 | ₹555.35 | ₹482.92 |
| April 2024 | ₹539.18 | ₹468.85 |
| May 2024 | ₹531.21 | ₹461.92 |
| June 2024 | ₹550.33 | ₹478.55 |
| July 2024 | ₹544.83 | ₹473.77 |
| August 2024 | ₹566.62 | ₹492.72 |
| September 2024 | ₹589.29 | ₹512.43 |
| October 2024 | ₹577.74 | ₹502.38 |
| November 2024 | ₹595.07 | ₹517.45 |
| December 2024 | ₹609.94 | ₹530.39 |
We anticipate interesting trends in share prices:
- Maximum Price: We predict that the highest share price throughout the year will occur in December 2024, reaching a peak of ₹609.94.
- Minimum Price: Conversely, we predict that the lowest share price for the year will be noted in January 2024, touching a minimum of ₹463.79.
Supreme Petrochem Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹622.14 | ₹478.57 |
| February 2025 | ₹638.10 | ₹490.84 |
| March 2025 | ₹662.98 | ₹509.99 |
| April 2025 | ₹649.98 | ₹499.99 |
| May 2025 | ₹631.05 | ₹485.42 |
| June 2025 | ₹659.45 | ₹507.27 |
| July 2025 | ₹646.52 | ₹497.32 |
| August 2025 | ₹666.51 | ₹512.70 |
| September 2025 | ₹689.84 | ₹530.65 |
| October 2025 | ₹707.78 | ₹544.44 |
| November 2025 | ₹725.47 | ₹558.05 |
| December 2025 | ₹743.61 | ₹572.01 |
- Maximum Price for the Year 2025: The apex of share prices for the year is predicted to be achieved in December 2025, soaring to a substantial ₹743.61.
- Minimum Price for the Year 2025: In contrast, the lowest share price for the entire year is predicted to be registered in January 2025, bottoming out at ₹478.57.
Across the year, there is a predicted clear upward trend in share prices, with each successive month expected to witness higher maximum and minimum prices. The maximum share price is expected to gradually increase from ₹622.14 in January to ₹743.61 in December, reflecting a predicted sustained upward trajectory. The share prices are anticipated to exhibit a degree of volatility, as demonstrated by the variations between the minimum and maximum prices in each month.
Supreme Petrochem Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹780.79 | ₹546.55 |
| 2027 | ₹858.87 | ₹601.21 |
| 2028 | ₹1,202.41 | ₹601.21 |
| 2029 | ₹1,041.05 | ₹520.52 |
| 2030 | ₹1,353.36 | ₹947.36 |
- In 2026, it is predicted that the share prices will exhibit notable volatility, with a maximum price expected to reach ₹780.79 and a minimum price expected to drop to ₹546.55, indicating a wide price range.
- 2027, it is predicted that there will be a further increase in share prices, with a maximum expected to rise to ₹858.87 and a minimum expected to reach ₹601.21, suggesting growing optimism in the market.
- Moving on to 2028, it is anticipated that the maximum share price will surge significantly to ₹1,202.41, while the minimum is expected to remain unchanged at ₹601.21, possibly indicating a period of increased stability.
- In 2029, it is predicted that the year will show a high maximum price of ₹1,041.05, but the minimum price is expected to drop to ₹520.52, suggesting some market fluctuations.
- Finally, in 2030, it is predicted that both the maximum and minimum share prices will reach new highs, with a maximum expected to reach ₹1,353.36 and a minimum expected to be at ₹947.36, potentially reflecting robust growth in the market.
These predictions provide insights into the dynamics of share prices and market conditions during this five-year period.
Supreme Petrochem Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (crores) |
3,194 | 2,724 | 3,185 | 5,032 | 5,287 |
| Expenses + (crores) |
3,100 | 2,576 | 2,510 | 4,126 | 4,626 |
| Operating Profit (crores) |
93 | 148 | 675 | 907 | 661 |
| OPM % | 3% | 5% | 21% | 18% | 12% |
| Other Income + (crores) |
10 | 12 | 16 | 30 | 59 |
| Interest (crores) |
4 | 6 | 8 | 7 | 6 |
| Depreciation (crores) |
23 | 36 | 39 | 42 | 47 |
| Profit before tax (crores) |
76 | 118 | 644 | 888 | 667 |
| Tax % | 35% | 13% | 26% | 25% | 25% |
| Net Profit + (crores) |
49 | 103 | 477 | 663 | 498 |
| EPS in Rs | 2.55 | 5.32 | 25.4 | 35.28 | 26.49 |
| Dividend Payout % | 59% | 52% | 30% | 26% | 42% |
- increased steadily over the years, with a notable jump from ₹2,724 million in March 2020 to ₹5,287 million in March 2023.
- Expenses followed a similar upward trend, reaching ₹4,626 million in March 2023. However, they remained below the sales figures, indicating cost management efforts.
- Operating profit experienced fluctuations but showed an overall increase, reaching its highest point at 21% in March 2021 before settling at 12% in March 2023. This demonstrates the company’s ability to improve operational efficiency.
- Other income also grew consistently, going from ₹10 million in March 2019 to ₹59 million in March 2023, indicating diversified income sources.
- PBT showed significant growth from ₹76 million in March 2019 to ₹888 million in March 2022 before declining slightly to ₹667 million in March 2023. This indicates the company’s profitability and its ability to generate income.
- Net profit increased substantially, from ₹49 million in March 2019 to ₹498 million in March 2023, resulting in a corresponding increase in earnings per share (EPS).
- The dividend payout percentage showed variations but remained relatively stable, indicating a consistent approach to distributing profits to shareholders.
In summary, the company’s five-year financial journey is marked by rising sales, diversified income streams, and improved operational efficiency. However, the recent dip in profitability warrants further scrutiny. The stable dividend payout percentage may appeal to investors. While this data offers insights, a comprehensive analysis considering industry context and strategies is essential for informed decision-making.
FAQs
What Is Supreme Petrochem’s Valuation ?
Supreme Petrochem’s current market capitalization stands at ₹10,628 Crores.
What Is Supreme Petrochem’s Current Share Price?
Supreme Petrochem’s current share price, as of today, November 29, 2023, stands at ₹564.
What Is The Share Price Target For Supreme Petrochem By 2025?
The expected share prices for 2025 exhibit a progressive upward trend, commencing at ₹478.57 in January and culminating at ₹743.61 in December.
What Is The Share Price Target For Supreme Petrochem By 2030?
The target share price for the year 2030 is expected to range between ₹947.36 (minimum) and ₹1,353.36 (maximum).
What Is Supreme Petrochem’s Return on Equity (ROE) Trend Over the Years?
Supreme Petrochem’s Return on Equity (ROE) has displayed a notable trend over the past few years. Here’s a summary:
- 10 Years: ROE has been consistently at 30%.
- 5 Years: ROE has shown steady growth, increasing to 34%.
- 3 Years: The trend continues upwards, reaching 42%.
- Last Year: In the last year, there was a slight dip to 28%.
The most recent reported ROE is 28.1%. Overall, the company has demonstrated a strong ROE performance, with some fluctuations in recent periods.
Should One Invest in Supreme Petrochem ltd.?
Considering the strong financial performance and favorable indicators observed in Supreme Petrochem’s recent history, investing in this company presents an enticing opportunity.
Debt Reduction: The company has significantly reduced its debt and is almost debt-free, which enhances its financial stability and reduces financial risk.
Profit Growth: Supreme Petrochem has delivered impressive profit growth at a compound annual growth rate (CAGR) of 32.5% over the last five years. This reflects its ability to generate strong earnings.
Return on Equity (ROE): The company has a commendable track record of ROE, with a three-year average of 41.6%. This indicates efficient utilization of shareholders’ equity.
Dividend Payout: Maintaining a healthy dividend payout of 32.2% showcases the company’s commitment to rewarding its shareholders.
Improved Debtor Days: The improvement in debtor days from 33.0 to 25.0 days indicates efficient management of receivables and cash flow.
When compared to its peers in the Petrochemicals sector, Supreme Petrochem seems to be in a competitive position. It exhibits reasonable valuation with a P/E ratio of 24.44 and a market capitalization of Rs. 9,245.99 crores.
However, before taking the leap into investment, it’s crucial to keep in mind that every investment decision should be made after careful consideration of several critical factors. These include the prevailing market conditions, the evolving trends within the industry, and alignment with your own financial objectives. Therefore, conducting thorough due diligence and seeking guidance from financial experts is highly recommended to ensure a well-informed and successful investment strategy.
