Southern Petrochemical Industries Corporation Ltd. (SPIC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rama Phosphates

Krishana Phosch.

M B Agro Prod.

Zuari Agro Chem.

Mangalore Chem.

Khaitan Chemical

SPIC

Madras Fertilize

Natl.Fertilizer

Indogulf Cropsci

Kothari Indl

Why is Southern Petrochemical Industries Corporation Ltd. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.60 times

Healthy long term growth as Operating profit has grown by an annual rate 36.33%

Positive results in Sep 25

NET SALES(9M) At Rs 2,352.29 cr has Grown at 43.54%
DEBTORS TURNOVER RATIO(HY) Highest at 335.36 times
OPERATING PROFIT TO INTEREST(Q) Highest at 11.06 times

With ROE of 14.3, it has a Very Attractive valuation with a 1.3 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 6.76%, its profits have risen by 19.6% ; the PEG ratio of the company is 0.5

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.59% over the previous quarter and collectively hold 6.23% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SPIC should be less than 10%
Overall Portfolio exposure to Fertilizers should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Fertilizers)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SPIC for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

SPIC

6.52%

0.15

43.72%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.00%

EBIT Growth (5y)

36.33%

EBIT to Interest (avg)

7.45

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

1.85

Tax Ratio

34.64%

Dividend Payout Ratio

26.17%

Pledged Shares

Institutional Holding

6.23%

ROCE (avg)

16.55%

ROE (avg)

20.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.31

EV to EBIT

7.30

EV to EBITDA

6.21

EV to Capital Employed

1.29

EV to Sales

0.56

PEG Ratio

0.47

Dividend Yield

2.40%

ROCE (Latest)

17.67%

ROE (Latest)

14.30%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

NET SALES(9M)

At Rs 2,352.29 cr has Grown at 43.54%

DEBTORS TURNOVER RATIO(HY)

Highest at 335.36 times

OPERATING PROFIT TO INTEREST(Q)

Highest at 11.06 times

PAT(Q)

At Rs 61.22 cr has Grown at 53.2% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 325.14 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.35 times

PBT LESS OI(Q)

At Rs 66.69 cr has Grown at 23.8% (vs previous 4Q average

-2What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for SPIC

Net Sales - Nine Monthly

At Rs 2,352.29 cr has Grown at 43.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 11.06 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 61.22 cr has Grown at 53.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 39.96 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 335.36 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 66.69 cr has Grown at 23.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 53.89 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 325.14 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.35 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for SPIC

Non Operating Income - Quarterly

Highest at Rs 25.53 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income