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Supreme Petrochem Moat Analysis: Score & Risks

Moat Note · First-pass

Supreme Petrochem Ltd.

A first-pass moat teardown of Supreme Petrochem Ltd., built from single-pass filing evidence. Free note — provisional, and the full two-pass deep dive may revise it.

Moat & Margin16 Aug 2026 First-pass · ~3 min
5.15 / 10
NARROWProcess/Data-led

First-pass narrow read — primary edge in Cost Advantage. Provisional, single-pass evidence.

Provisional score · subject to modification based on new evidence

Supreme Petrochem Ltd. scores 5.15 on MoatSCORE 6.0 — a narrow moat in Chemicals. This is a first-pass note: the dimensional read and the filing receipts below come from a single GFIP evidence pass, not the full two-pass deep corpus behind our flagship deep dives. Provisional — published free while the deep version is queued.

The teardown

Seven dimensions of moat

Ordered by contribution. Each dimension carries a verified filing quote, graded [M] mechanism or [O] outcome.

D3Cost Advantage6
M · Mechanism Verified verbatim

“The Energy Conservation schemes undertaken during the financial Year 2025-26 by the company resulted in savings of energy to the extent of 1,54,284 KWH.”

Supreme Petrochem Ltd. · Annual Report · p.28
D4Price Discretion6
M · Mechanism Verified verbatim

“On the sale side, some part of Company's sale is on annual contracts basis tied into monthly SM pricing which allows for equitable sharing of the volatility in SM pricing”

Supreme Petrochem Ltd. · Annual Report · p.47
D6Efficient Scale6
M · Mechanism Verified verbatim

“Company's effective capacity after expansion of PS is 3,00,000 MT and of EPS is 1,10,000 MT.”

Supreme Petrochem Ltd. · Annual Report · p.33
D1Network Effects4.8
M · Mechanism Verified verbatim

“all marketing offices and sales depots”

Supreme Petrochem Ltd. · Annual Report · p.33
D2Switching Costs4.8
M · Mechanism Verified verbatim

“So a typical timeline, say if you want to get into any automobile or household consumer durable goods, the OEM product approval, ST approval timeline would be? I would say anything between three to six months.”

Supreme Petrochem Ltd. · Earnings Call · p.13
D5Intangible Assets4.7
M · Mechanism Verified verbatim

“the customers who wanted extended credits or they were defaulting in payments, we have kind of said no to them now for future supplies. That has of course reduced our volumes in the interim”

Supreme Petrochem Ltd. · Earnings Call · p.16
D7Counter-PositioningExcluded
Excluded for this archetype.
D8Ungoverned RiskUnscored · Layer 2.5

D8 rating: ADEQUATE. Not part of the moat score — it governs the cost of equity and the fade window. First-pass; not yet deep-reviewed.

The barrier gate

The barrier gate — first-pass

Replication — can a rival copy it?6.0
How hard it is for a rival to copy the edge (first-pass estimate).
Bypass — can a rival route around it?6.0
How easily a rival can route around the edge (first-pass estimate).

Effective barrier 6 — at or above 6, consistent with a narrow read. First-pass estimate.

What would change our mind
  1. Deep two-pass review. This draft rests on a single GFIP evidence pass; the full 10-year AR + concall corpus may move the read.

  2. The barrier gate. A firmer replication or bypass estimate is the most likely thing to shift the band.

  3. Adverse events. Any governance, regulatory or funding shock captured in D8 could re-rate the fade window.

First-pass note — provisional single-pass MoatSCORE 6.0 read, not the full deep dive. Educational research, not investment advice; no buy/sell recommendation, no price target. Moat & Margin is not a SEBI-registered Research Analyst or Investment Adviser.