1. At a Glance
Supreme Petrochem (SPL) is the kid in class who always tops chemistry but keeps failing in stability. With a50% domestic market share in polystyrene & EPSand theonly XPS boards producer in India, SPL is literally supreme in styrenics. But margins? More volatile than Bollywood relationships. They spiked to 20% during COVID chaos (when global supply collapsed) and have since “normalized” to 9–10%. FY25 revenue:₹5,836 crore. Profit:₹350 crore. Market Cap:₹15,158 crore. Stock P/E? A nosebleed-inducing43x.
2. Introduction
Petrochemicals don’t sound sexy. But Supreme Petrochem has been quietly filling your homes, cars, and offices with styrenic plastics—from the TV panel you watch cricket on to the insulation board keeping your AC bill slightly less murderous.
The company has two big bragging rights:
- It controlshalf of India’s polystyrene market. If you’re buying PS or EPS, chances are you’ve already paid tribute to Supreme.
- It’s theonly Indian producer of XPS insulation boards, which are basically plastic Thermos flasks turned into construction material.
Of course, petrochemicals come with a built-in soap opera. Global styrene spreads go up? SPL looks like a genius. Spreads collapse? SPL looks like it needs therapy. FY21–22 margins were blockbuster thanks to COVID supply disruptions, but FY24–25 brought everyone back to reality.
Now, SPL is betting big onABS (Acrylonitrile Butadiene Styrene)—the plastic used in helmets, dashboards, and Lego bricks. They’re setting up1,40,000 MT capacity with Italy’s Versalis-Eni, with Phase 1 (70,000 MT) due in FY26. If it clicks, margins might finally get some muscle.
3. Business Model (WTF Do They Even Do?)
Supreme Petrochem’s business model is simple—make styrenic plastics, sell styrenic plastics, pray margins don’t collapse.
Product Range:
- Polystyrene (PS):Commodity workhorse.
- Expandable Polystyrene (EPS):Think packaging, insulation.
- Masterbatches & Compounds:Customized blends for industries.
- XPS Boards:High-end insulation.
- ABS (upcoming):Value-added diversification.
Geography:
- 91% Domestic (FY24)
- 9% Exports across 100+ countries
Facilities:
- Amdoshi (Maharashtra)&Chennai (TN)
- PS: 3,00,000 MT, EPS: 1,15,000 MT, Compounds: 33,500 MT, XPS Boards: 72,000 CBM
Growth Bets:
- ABS plant(FY26)
- Greenfield Haryana styrenics complex(₹800 crore)
- Renewable
- energy JV with Tata Power—already 50% of Amdoshi powered by solar.
Translation: SPL is trying to upgrade from “just another commodity petrochem player” to “value-added plastics boss.”
4. Financials Overview
| Metric | Latest Qtr (Jun ’25) | YoY Qtr (Jun ’24) | Prev Qtr (Mar ’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹1,387 Cr | ₹1,573 Cr | ₹1,539 Cr | -11.9% | -9.9% |
| EBITDA | ₹115 Cr | ₹161 Cr | ₹145 Cr | -28.6% | -20.7% |
| PAT | ₹81 Cr | ₹122 Cr | ₹107 Cr | -33.6% | -24.3% |
| EPS (₹) | 4.3 | 6.5 | 5.7 | -33.8% | -24.6% |
Commentary:This quarter’s results were like a post-party hangover. Sales slipped, profits shrank. Annualized EPS ~₹17 → P/E =47x adjusted. For a commodity chemical stock, that’s like paying iPhone Pro prices for a Nokia 3310.
5. Valuation (Fair Value Range Only)
- P/E Method:EPS ~₹17, industry P/E ~18 → FV =₹300–₹500.
- EV/EBITDA Method:EV ~₹14,825 Cr. EBITDA (TTM) ~₹484 Cr. EV/EBITDA = 30x vs peer avg ~10–15x → FV =₹400–₹600.
- DCF:Assuming 12% CAGR (optimistic given cyclicality), FV =₹600–₹900.
👉Consolidated FV Range: ₹400–₹900Disclaimer: This FV range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
- ABS Commissioning:Phase 1 (70,000 MT) due in Q1 FY26. If margins improve, investors might forgive today’s valuation sins.
- Capex Junkie:₹350–400 Cr annually over FY25–27, plus Haryana greenfield project. Management seems allergic
