Stock Price Movement and Market Context
On 24 Feb 2026, SPIC’s share price touched Rs.68.6, down 1.49% on the day and continuing a two-day losing streak that has resulted in a cumulative decline of 2.3%. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex fell sharply by 844.04 points (-1.3%) to close at 82,208.50, though it remains within 4.81% of its 52-week high of 86,159.02.
SPIC’s 52-week high was Rs.128.1, indicating a substantial drop of approximately 46.4% from that peak. Over the past year, the stock has underperformed significantly, delivering a negative return of -13.13%, while the Sensex posted a positive 10.41% gain over the same period. This divergence highlights the stock’s relative weakness within the fertilizers sector and the broader market.
Institutional Investor Participation
One notable factor contributing to the stock’s decline is the reduced participation by institutional investors. Their collective stake has decreased by 1.14% over the previous quarter, now representing just 5.09% of the company’s shareholding. Institutional investors typically possess greater analytical resources and tend to adjust their holdings based on fundamental assessments, suggesting a cautious stance towards SPIC’s near-term prospects.
Long-Term and Recent Performance Trends
SPIC’s performance has been below par not only in the recent year but also over longer time horizons. The stock has underperformed the BSE500 index across the last three years, one year, and the past three months. This persistent underperformance has weighed on investor sentiment and contributed to the stock’s current valuation pressures.
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Financial Metrics and Operational Highlights
Despite the stock’s recent price weakness, SPIC exhibits several positive financial attributes. The company maintains a low Debt to EBITDA ratio of 0.60 times, indicating a strong capacity to service its debt obligations. Operating profit has grown at an annualised rate of 38.81%, reflecting healthy long-term growth trends.
SPIC has reported positive results for the last three consecutive quarters. Its Profit After Tax (PAT) for the latest six months stands at Rs.115.29 crores, representing a robust growth of 56.50%. The company’s Debtors Turnover Ratio for the half-year is notably high at 335.36 times, while the Operating Profit to Interest ratio for the quarter is also strong at 18.12 times, underscoring efficient operational management.
Valuation and Profitability Metrics
The company’s Return on Equity (ROE) is 14.3%, which is considered attractive within the sector. SPIC’s Price to Book Value ratio is 1.1, suggesting the stock is trading at a discount relative to its peers’ average historical valuations. Over the past year, while the stock price declined by 13.13%, profits increased by 25.5%, resulting in a Price/Earnings to Growth (PEG) ratio of 0.3, which typically indicates undervaluation when viewed in isolation.
Sector and Market Comparison
SPIC operates within the fertilizers industry, a sector that has experienced mixed performance amid fluctuating commodity prices and regulatory changes. The stock’s performance today was in line with the sector’s movement, reflecting broader sectoral pressures rather than company-specific events alone. The Sensex’s decline on the same day further contextualises the stock’s price movement within a wider market correction.
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Mojo Score and Rating Update
MarketsMOJO assigns SPIC a Mojo Score of 46.0, categorising it with a Sell grade as of 5 Jan 2026, a downgrade from its previous Hold rating. The Market Cap Grade stands at 3, reflecting the company’s mid-tier market capitalisation within its sector. This rating adjustment aligns with the stock’s recent price performance and institutional investor behaviour.
Summary of Key Concerns and Strengths
The stock’s decline to a 52-week low is influenced by reduced institutional participation and sustained underperformance relative to market benchmarks. However, the company’s strong debt servicing ability, consistent operating profit growth, and attractive valuation metrics provide a balanced view of its financial health. The recent positive quarterly results and improved profitability ratios further add nuance to the stock’s current valuation context.
Conclusion
Southern Petrochemical Industries Corporation Ltd.’s stock price reaching Rs.68.6 marks a significant low point within the last year, reflecting a combination of market-wide pressures and company-specific factors. While the stock has underperformed relative to the Sensex and its sector peers, the company’s financial fundamentals exhibit resilience. The current market environment and investor sentiment continue to influence the stock’s valuation and trading levels.
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