Supreme Industries, a leading player in India’s plastic products manufacturing sector, has been gaining traction among investors due to its robust financials and market presence. The stock has been hovering near its lower ranges, trading at Rs 4,983.35 on the opening bell, with a high of Rs 5,156.75. As it stands amidst a volatile market, this article delves into the stock’s performance metrics, technical analysis, and its competitive landscape, offering actionable insights for investors looking to add this stalwart to their portfolio.

Stock Snapshot: Key Metrics and Performance

Stock Details at a Glance

Open: Rs 4,983.35
High: Rs 5,156.75
Low: Rs 4,969.50
Market Cap: Rs 647.71B
P/E Ratio: 59.25
Dividend Yield: 0.63%
52-Week High: Rs 6,460.00
52-Week Low: Rs 3,601.00
Supreme Industries’ stock has experienced a 22% decline from its 52-week high of Rs 6,460, signaling an opportunity for value investors to consider its recovery potential.

Financial Overview and Analyst Ratings
Performance Insights Supreme Industries has consistently delivered robust financials, backed by its diversified product portfolio in industrial and consumer goods. Its P/E ratio of 59.25 reflects the premium valuation the market assigns to its growth potential.

Recent analyst reports suggest a cautiously optimistic outlook. ICICI Direct has set a target price of Rs 5,500, citing the company’s consistent revenue growth and operational efficiency. Meanwhile, Motilal Oswal maintains a "Hold" recommendation, advising investors to watch for signs of recovery in profit margins before taking positions.

Technical Analysis: Decoding Market Trends
Candlestick Pattern Analysis On the daily charts, Supreme Industries has formed a bullish engulfing pattern, indicating strong buying momentum. This suggests the potential for a short-term upward trend if supported by volume.

Fibonacci Levels Using the 52-week high of Rs 6,460.00 and the 52-week low of Rs 3,601.00, the key Fibonacci retracement levels are:

23.6%: Rs 4,579.92
38.2%: Rs 4,930.77
50%: Rs 5,030.50
61.8%: Rs 5,130.23
The stock is currently trading near the 38.2% retracement level, which has acted as a significant support zone in the past.

Support and Resistance Levels

Immediate Support: Rs 4,950
Key Resistance: Rs 5,200
Breaking above the Rs 5,200 resistance level could pave the way for further upside toward Rs 5,500.

Competitive Landscape: Supreme’s Standing in the Industry
Supreme Industries faces stiff competition in the plastic and polymer segment, with Finolex Industries and Astral Poly Technik being key rivals.

Finolex Industries
Known for its strong presence in PVC resin and pipes, Finolex offers a diversified product portfolio. Its lower P/E ratio compared to Supreme makes it attractive for value-conscious investors.

Astral Poly Technik
Astral’s innovative solutions in adhesive and piping systems provide a competitive edge. The company’s aggressive expansion plans could pose challenges to Supreme Industries’ market share in the long run.

Strategic Insights for Investors
Short-Term Strategy For traders, Supreme Industries presents an opportunity to capitalize on its recent bullish momentum. Entering around Rs 5,000 with a target of Rs 5,200–Rs 5,500 could yield short-term gains.

Long-Term Potential For long-term investors, Supreme Industries’ focus on innovation and expansion in high-growth segments, such as industrial packaging and consumer products, underscores its potential for sustainable growth. A buy-and-hold strategy may prove fruitful as the company continues to invest in capacity building and operational efficiencies.