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Supreme Petrochem
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Supreme Petrochem promoted by Supreme Industries (SIL) and R Raheja Investments was incorporated on December 14, 1989. The Company is mainly engaged in the business of Styrenics and manufactures Polystyrene (PS), Expandable Polystyrene (EPS), Masterbatches and Compounds of Styrenics and other Polymers, Extruded Polystyrene Insulation Board (XPS) Styrene Methyl Methacrylate (SMMA) with manufacturing facilities at Amdoshi Dist Raigad, Maharashtra and Manali New Town, Chennai, Tamil Nadu. The Company manufactures Styrene Monomer (SM) and polystyrene. The Polystyrene plant was set up in collaboration with ABB Lumus Crest, USA, at Nagothane, in Maharashtra with an installed capacity of 66000 TPA.
Polystyrene is a thermoplastic resin having applications in television cabinets, car components, novelty items, food packaging, audio and video cassettes, computers, air-conditioners and washing machines, beeds, bangles, etc. It manufactures high quality polystyrene using the proven Huntsman process at its state-of-the-art plant and has a market share of around 55%.
The Polystyrene industry have experienced difficult conditions in the past, mainly due to significant capacity additions and lower demand. This adversely affected the profitability of company, But recently due the improvement in the global economy and particularly that of South-East Asia has resulted in improved demand for polystyrene. Also recovery in petrochemical prices has resulted in increase in polymer prices in recent times. Helped the company to improve its profitability.
The Company has been certified by several of the industry's leading certifying bodies. This stands as an assertion of the superior quality of its products and adherence to international standards. ISO 9002 from BVQI, ISO 14001 from DNV, Five Star ratings from the Company's Health and Safety Management System from British Safety Council & Dr. R.J. Rathi Award for Environmental Pollution Control.
In 1999-2000, to part finance its expansion project the company allotted 15000000, 10.5% Cumulative Redeemable Preference Shares of Rs 10/- each aggregating to Rs 1500 lacs on private placement basis.
During 2000-2001 it completed the expansion projects to increase the capacity of Polystyrene from 112000 TPA to 204000 TPA. Its Compounded Speciality Polystyrene facility with 17000 TPA commissioned successfully and was under trial runs. Also it has received approval for setting up a Jetty and Chemical Handling Terminal at Raigad, Maharashtra.
During the year 2004, the Board of the Company approved the Capital Expenditure Schemes in terms of a) Construction of Minor Port with shore tanks at Alibag, Dist. Raigad in Maharashtra; (b) Revamping and de-bottlenecking of, Polystyrene lines from capacity of 2,04,000 t.p.a. to 2,72,000 t.p.a.; and (c) EPS plant with 40,000 t.p.a. capacity.
The installed capacity of the Expandable Polystyrene (EPS) plant in Chennai increased to 27700 TPA effective from June 1, 2010. The Company started commercial production of Extruded Polystyrene Board (XPS) from August, 2009. The Company's new plants for Expandable Polystyrene (including Cup Grade EPS) at the existing site in Maharashtra started production from February 2012. The installed capacity of Speciality Compounds and Polymers (SPC), which increased to 33500 TPA was implemented in January, 2012 by installing 4 new lines. Company's XPS Boards under brand name, INSUBOARD' were used in several large commercial projects, green buildings and in cold storages across the Country. The Company completed the capital expenditure schemes relating to EPS and Cup Grade EPS, SPC and Captive Power Plant during the year without any cost overrun. A total capex of Rs. 6280 lacs was incurred during the year 2012.
Polystyrene (PS ) expansion at Amdoshi and Expandable Polystyrene (EPS) expansion at both Amdoshi and Manali plants was commissioned during 2022-23. The Company incurred a total expenditure of Rs 206 crores during the year 2022-23 for projects related to PS, EPS, Mass ABS and hardware replacement at Amdoshi and Manali plant
Supreme Petrochem share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Supreme Petrochem indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Supreme Petrochem is valued compared to its competitors.
Supreme Petrochem PE ratio helps investors understand what is the market value of each stock compared to Supreme Petrochem 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Supreme Petrochem evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Supreme Petrochem generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Supreme Petrochem in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Supreme Petrochem shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Supreme Petrochem compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Supreme Petrochem over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Supreme Petrochem helps investors get an insight into when they can enter or exit the stock. Key components of Supreme Petrochem Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Supreme Petrochem shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Supreme Petrochem ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Supreme Petrochem provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Supreme Petrochem highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Supreme Petrochem .
The balance sheet presents a snapshot of Supreme Petrochem ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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