Southern Petrochemical Industries Corporation Limited (SPIC) AI Stock Analysis

• Market Cap: ₹12.51B
• Dividend Yield: 2.46%
• Average Volume (3M): 29.49K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.32
• Revenue Growth: 47.79%
• EPS Growth: 74.12%
• Country: IN
• Employees: 649
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 2.65
• Shares Outstanding: 203,640,340
• 10 Day Avg. Volume: 33,177
• 30 Day Avg. Volume: 29,492
• PEG Ratio: 0.29
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -5.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹64.00 ▼(-28.19% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is anchored by improving profitability and revenue growth but held back by negative free cash flow and rising debt. Technically, the stock is in a clear downtrend with weak momentum, while valuation (low P/E and ~3.1% yield) provides meaningful support.

Positive Factors

Revenue Growth

Sustained double-digit revenue growth indicates expanding core fertilizer and chemical volumes or pricing power. Over 2-6 months this underpins scale benefits, supports margin recovery, and provides a larger base to fund reinvestment or deleveraging if cash conversion improves.

Improved Profitability

Recovery from negative to positive gross and net margins reflects better cost control or pricing and shows the business can operate profitably. Durable margin improvement increases free cash flow potential and resilience to input cost swings over the medium term.

Solid Equity Base

A growing equity base and steady equity ratio give the company financial cushion against cyclical volatility, improve credit standing, and preserve borrowing capacity. This structural strength supports strategic investments and buffers operating downturns.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow and weakening cash conversion mean profits are not reliably turning into cash. Over months this raises liquidity risk, forces reliance on external financing, and constrains capex, dividends, or debt reduction plans.

Rising Leverage

An increasing reliance on debt raises fixed obligations and interest expense, reducing financial flexibility. If cash generation remains weak, higher leverage heightens refinancing and solvency risk and limits the company's ability to invest or weather price cycles.

Gross Profit Volatility

Marked swings in gross profit suggest exposure to volatile input costs or inconsistent utilization. This undermines margin predictability and planning, making sustainable earnings and cash forecasting harder for management and increasing earnings risk over the medium term.

Southern Petrochemical Industries Corporation Limited Business Overview & Revenue Model

Company Description

Southern Petrochemical Industries Corporation Limited manufactures and sells fertilizers in India and internationally. The company operates through Agro inputs - Urea Operations and Others - Agri Business segments. It provides chemical fertilizers, such as urea, di-ammonium phosphate, ammonium phosphate sulphate, super phosphate, and ammonium chloride; secondary nutrients, water soluble fertilizers, organic and organic liquid fertilizers, micro nutrients, and bio pesticides and fertilizers; and industrial products, including gypsum, aluminum fluoride, and silica. The company also engages in the tissue culture businesses. In addition, it offers agricultural services, including soil management, training center, journal, agri clinic, and SMS services for farmers. Southern Petrochemical Industries Corporation Limited was incorporated in 1969 and is headquartered in Chennai, India.

How the Company Makes Money

SPIC generates revenue through the sale of its primary products, which include fertilizers like urea and ammonia, as well as various petrochemical products. The company benefits from a vertically integrated business model, allowing it to control costs and optimize production efficiency. Key revenue streams include domestic sales to agricultural sectors, where its fertilizers are essential for crop production, and exports to international markets. Additionally, SPIC has established partnerships with various agricultural cooperatives and private distributors to enhance its market reach. Factors contributing to its earnings include fluctuating commodity prices, government subsidies for fertilizer production, and increasing global demand for petrochemicals.

Southern Petrochemical Industries Corporation Limited Financial Statement Overview

Summary

Income statement strength (revenue growth and improved profitability) is tempered by gross profit volatility, rising debt levels, and weak cash conversion with negative free cash flow in recent years.

Income Statement

The company has shown robust revenue growth over the years, with a notable increase from 2024 to 2025. Gross and net profit margins have improved significantly from negative values in earlier years to positive margins, indicating enhanced profitability. The EBIT and EBITDA margins are also healthy, showcasing efficient operational management. However, the large fluctuations in gross profit over the years pose a potential risk, reflecting volatility in cost management or revenue recognition.

Balance Sheet

The balance sheet highlights a stable financial structure with a consistent increase in stockholders' equity, reflecting a solid equity base. The debt-to-equity ratio has increased slightly, indicating a moderate reliance on debt financing but still within a manageable range. The equity ratio shows a steady proportion of assets financed by equity, suggesting a balanced approach to financing. Nevertheless, the increase in total debt warrants caution, given the potential impact on financial stability if leverage continues to rise.

Cash Flow

Cash flow analysis indicates variability in free cash flow with negative values in recent years, highlighting challenges in cash generation. The operating cash flow to net income ratio has deteriorated, suggesting issues in converting profits to cash. Despite these challenges, the company has maintained a positive financing cash flow, which has supported operations. The negative free cash flow to net income ratio is a concern and suggests potential liquidity constraints if not addressed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.97B	30.72B	19.44B	5.23B	3.79B	3.27B
Gross Profit	7.82B	7.67B	4.51B	-17.44B	-11.74B	-9.85B
EBITDA	3.27B	3.28B	2.19B	3.96B	1.90B	1.28B
Net Income	1.60B	1.56B	1.13B	3.01B	1.63B	740.75M
Balance Sheet
Total Assets	0.00	22.85B	17.63B	22.02B	16.92B	17.12B
Cash, Cash Equivalents and Short-Term Investments	807.50M	807.50M	2.05B	419.00M	330.12M	1.06B
Total Debt	0.00	7.22B	4.71B	4.01B	3.05B	1.04B
Total Liabilities	-11.99B	10.86B	6.87B	12.16B	9.98B	11.96B
Stockholders Equity	11.99B	11.99B	10.76B	9.86B	6.94B	5.16B
Cash Flow
Free Cash Flow	0.00	-2.91B	1.54B	-601.09M	-2.67B	1.78B
Operating Cash Flow	0.00	-379.50M	2.27B	-306.62M	-1.06B	3.61B
Investing Cash Flow	0.00	-1.45B	-1.75B	-163.37M	-1.56B	-1.59B
Financing Cash Flow	0.00	1.63B	4.30M	583.91M	1.89B	-1.88B

Southern Petrochemical Industries Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPIC, the sentiment is Negative. The current price of 89.13 is above the 20-day moving average (MA) of 69.62, above the 50-day MA of 74.27, and above the 200-day MA of 86.47, indicating a bearish trend. The MACD of -2.60 indicates Positive momentum. The RSI at 24.54 is Positive, neither overbought nor oversold. The STOCH value of 8.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SPIC.

Southern Petrochemical Industries Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANAKSIA	67 Neutral	₹3.76B	7.26	―	―	51.38%	-19.06%
KHAICHEM	62 Neutral	₹5.19B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SPIC	60 Neutral	₹12.51B	7.91	―	2.46%	47.79%	74.12%
JAYAGROGN	60 Neutral	₹8.75B	22.24	―	1.23%	0.69%	-7.54%
MADRASFERT	48 Neutral	₹10.01B	127.23	―	―	3.38%	0.68%

Southern Petrochemical Industries Corporation Limited Corporate Events

SPIC Notifies Conversion of Statutory Auditor M S K A & Associates into LLP

Southern Petrochemical Industries Corporation Limited has disclosed that its statutory auditor, M S K A & Associates, Chartered Accountants, has converted into a Limited Liability Partnership (LLP) under the Limited Liability Partnership Act, 2008, and will now operate as M S K A & Associates LLP, Chartered Accountants, effective 13 January 2026. Following this conversion, the firm’s registration number has been updated, and SPIC has formally notified the stock exchange in compliance with SEBI’s disclosure norms, signalling an administrative change in its audit arrangements without indicating any alteration in the auditor relationship itself.