Southern Petrochemical Industries Corporation Limited (SPIC) AI Stock Analysis

• Market Cap: ₹13.75B
• Dividend Yield: 2.46%
• Average Volume (3M): 29.49K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.22
• 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: 61 Neutral
• Price Target: ₹71.00 ▼(-20.34% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

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

Essential agricultural products

SPIC's core business is producing fertilizers and industrial chemicals, which supply essential agricultural inputs. That structural exposure supports stable underlying demand from farming cycles and distribution channels, providing predictable baseline volumes and long-term relevance for revenue.

Strong revenue growth

A reported ~27% revenue growth indicates expanding sales scale and market traction. Durable revenue expansion over recent periods supports capacity utilization, spreads fixed costs, and underpins sustainable profit improvement if management maintains product mix and market access over the next several quarters.

Improving margins and profitability

Material margin recovery and healthier EBIT/EBITDA margins point to operational improvements and better cost management. Sustained margin expansion enhances internal cash generation potential and resilience to commodity or price swings, supporting longer-term earnings quality if volatility is controlled.

Negative Factors

Negative free cash flow

Recent negative free cash flow and deteriorating operating cash flow-to-net-income ratio suggest earnings are not being reliably converted to cash. That can constrain capital spending, reduce flexibility for maintenance or growth, and force dependence on external financing over multiple quarters.

Rising leverage

An observable rise in total debt and a higher debt-to-equity ratio implies greater reliance on borrowed funds. Increased leverage raises interest and refinancing risk, limits strategic optionality, and could pressure liquidity metrics if cash flow volatility persists over the medium term.

Gross profit volatility

Significant swings in gross profit suggest exposure to volatile input costs or inconsistent pricing power. Such volatility makes margin forecasting and investment planning harder, and could erode margin improvements if raw material or energy costs spike, affecting medium-term earnings stability.

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

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	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: Negative
• 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 70.87, above the 50-day MA of 75.16, and above the 200-day MA of 86.80, indicating a bearish trend. The MACD of -1.72 indicates Negative momentum. The RSI at 35.49 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 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	₹3.75B	7.20	―	―	51.38%	-19.06%
KHAICHEM	62 Neutral	₹5.51B	7.66	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SPIC	61 Neutral	₹13.75B	6.82	―	2.46%	47.79%	74.12%
JAYAGROGN	60 Neutral	₹8.39B	11.82	―	1.23%	0.69%	-7.54%
MADRASFERT	48 Neutral	₹10.35B	146.03	―	―	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.