Southern Petrochemical Industries Corporation Limited (SPIC) AI Stock Analysis

• Market Cap: ₹14.71B
• Dividend Yield: 2.46%
• Average Volume (3M): 29.49K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.33
• Revenue Growth: 47.79%
• EPS Growth: 74.12%
• Country: IN
• Employees: 649
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 3.01
• 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: 61 Neutral
• Price Target: ₹76.00 ▼(-14.73% Downside)

The overall stock score of 61 reflects a balanced view of Southern Petrochemical Industries Corporation Limited. The strong financial performance, particularly in revenue growth and profitability, is offset by concerns over cash flow volatility and rising debt levels. Technical analysis suggests bearish momentum, while the valuation indicates potential undervaluation, supported by a reasonable dividend yield. The absence of recent earnings call insights or notable corporate events leaves the focus on these core aspects.

Positive Factors

Strong Revenue Growth

Sustained near-50% revenue growth signals expanding demand or market share in fertilizers/chemicals. Over a multi-quarter horizon this supports scale benefits, stronger negotiating leverage with suppliers and customers, and a firmer foundation for reinvestment or margin improvement.

Improved Profitability and Margins

Material improvement from prior negative margins to positive gross/net and healthy EBIT/EBITDA indicates operational fixes and better cost control. Durable margin expansion implies the company can convert higher volumes into sustainable profits if input management and plant efficiency persist.

Stronger Equity Base

A steady rise in shareholders' equity enhances financial resilience, providing a buffer against cyclical volatility in chemicals/fertilizers. This equity strength supports capex funding, absorbs shocks from commodity swings, and reduces reliance on short-term financing.

Negative Factors

Negative Free Cash Flow and Cash Conversion

Persistent negative free cash flow and worsening cash conversion mean reported profits are not translating into liquidity. Over months this limits self-funding for maintenance, capex, and working capital, increasing reliance on external financing and constraining strategic flexibility.

Rising Leverage

An uptick in debt levels raises interest burden and refinancing risk, especially given volatile cash generation. Higher leverage reduces financial flexibility for cyclical capex or agricultural seasonality and magnifies downside if commodity inputs or pricing deteriorate.

Volatile Gross Profit History

Significant swings in gross profit suggest exposure to feedstock/energy cost volatility, inconsistent plant utilization, or pricing pressures. This structural volatility complicates forecasting, undermines margin sustainability, and raises execution risk for long-term planning.

Southern Petrochemical Industries Corporation Limited Business Overview & Revenue Model

Company Description

Southern Petrochemical Industries Corporation Limited (SPIC) is a prominent player in the petrochemical sector based in India, specializing in the production of a diverse range of chemical products. The company operates primarily in the manufacture of fertilizers, chemicals, and petrochemicals, with core products including urea, ammonia, and various types of industrial chemicals. SPIC is committed to sustainable practices and innovation, aiming to meet the growing demand for chemical products in agriculture and industry.

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

Southern Petrochemical Industries Corporation Limited demonstrates strong revenue growth and improved profitability, signaling a positive trajectory. However, the volatility in gross profit and the rising debt levels highlight areas of concern. The cash flow situation, with negative free cash flow, necessitates attention to ensure sustainable financial health. The company should focus on stabilizing its cost structures and optimizing cash flow management to enhance its financial resilience.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• STOCH: Neutral

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 76.47, above the 50-day MA of 79.93, and above the 200-day MA of 87.72, indicating a bearish trend. The MACD of -2.52 indicates Positive momentum. The RSI at 35.22 is Neutral, neither overbought nor oversold. The STOCH value of 27.99 is Neutral, 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	₹4.20B	8.06	―	―	51.38%	-19.06%
KHAICHEM	62 Neutral	₹6.29B	8.74	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SPIC	61 Neutral	₹14.71B	7.91	―	2.46%	47.79%	74.12%
JAYAGROGN	60 Neutral	₹8.81B	10.67	―	1.23%	0.69%	-7.54%
MADRASFERT	48 Neutral	₹12.25B	15.47	―	―	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.

SPIC Reports Stable Financial Performance for H1 FY26

SPIC announced its unaudited financial results for the second quarter and half year ending September 30, 2025, reporting a turnover of ₹1598 crore and a profit before tax (PBT) of ₹170 crore for the first half of fiscal year 2026. The company’s revenue from operations and profit levels have been maintained compared to the previous year, highlighting stable performance. Additionally, SPIC has received a partial insurance claim related to flood damages, which could impact future financials.