Southern Petrochemical Industries Corporation Limited (SPIC) AI Stock Analysis

• Market Cap: ₹12.26B
• Dividend Yield: 2.46%
• Average Volume (3M): 29.49K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.23
• 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: ₹68.00 ▼(-23.71% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is driven primarily by improving profitability and revenue growth, tempered by weak cash-flow quality and rising debt. Technicals are notably bearish (below key moving averages with negative MACD), while the low P/E and ~3.1% dividend yield provide meaningful valuation support.

Positive Factors

Revenue growth & margin recovery

The company reported strong revenue growth and a clear shift to positive gross, EBIT and EBITDA margins. Sustained margin recovery indicates improved operational efficiency and pricing power, supporting durable earnings improvement if cost discipline and plant utilization remain stable.

Improving equity base

A rising shareholders' equity and steady equity ratio provide a thicker capital buffer and financial flexibility. This strengthens solvency over time, supports investment or working capital needs, and reduces short-term default risk compared with peers with weaker equity cushions.

Staple fertilizer exposure

Core exposure to urea and nitrogen fertilizers ties revenues to essential agricultural demand, which is structurally stable. This product mix generates recurring industrial and agricultural cash flows and benefits from long-term policy and food security support in key markets.

Negative Factors

Weak cash generation

Recent negative free cash flow and a deteriorating operating cash flow to net income ratio indicate weak cash conversion. Persistently poor FCF limits the firm's ability to self-fund capex, reduce debt, or sustain dividends, increasing dependency on external financing.

Rising leverage

An increase in total debt and a higher debt-to-equity ratio raise financial leverage. Higher leverage reduces flexibility, raises interest expense sensitivity, and elevates refinancing and liquidity risk—especially concerning given recent weak cash flow conversion.

Gross profit volatility

Significant swings in gross profit suggest exposure to feedstock, energy or pricing volatility. Such variability undermines margin predictability and can quickly reverse recent profitability gains if raw material costs spike or utilization falls, complicating planning and investment.

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 primarily through the sale of its chemical and fertilizer products to industrial customers, agricultural distribution channels, and related buyers, with earnings driven by product volumes sold and realized selling prices. Key revenue streams are typically tied to fertilizer sales (e.g., urea and other nitrogenous products) and industrial chemical sales where applicable; revenue is recognized from delivering these goods under commercial contracts. Profitability in such businesses is influenced by raw material and energy costs (commonly including natural gas or other feedstocks for nitrogen fertilizers), plant utilization, and prevailing domestic/international fertilizer and chemical pricing. Specific details on SPIC's current segment-wise revenue mix, named major customers, or significant commercial partnerships are not available in the provided context, so those data points are null.

Southern Petrochemical Industries Corporation Limited Financial Statement Overview

Summary

Income statement trends show strong revenue growth and a shift to positive profitability with healthier EBIT/EBITDA margins, but gross profit volatility adds risk. The balance sheet is supported by rising equity, though total debt has increased. Cash flow is the key weak spot, with negative recent free cash flow and weaker conversion of earnings into cash.

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	31.56B	30.72B	19.44B	5.23B	3.79B	3.27B
Gross Profit	7.42B	7.67B	4.51B	-17.44B	-11.74B	-9.85B
EBITDA	3.61B	3.28B	2.19B	3.96B	1.90B	1.28B
Net Income	1.86B	1.56B	1.13B	3.01B	1.63B	740.75M
Balance Sheet
Total Assets	22.36B	22.85B	17.63B	22.02B	16.92B	17.12B
Cash, Cash Equivalents and Short-Term Investments	3.70B	807.50M	2.05B	419.00M	330.12M	1.06B
Total Debt	4.49B	7.22B	4.71B	4.01B	3.05B	1.04B
Total Liabilities	9.37B	10.86B	6.87B	12.16B	9.98B	11.96B
Stockholders Equity	13.00B	11.99B	10.76B	9.86B	6.94B	5.16B
Cash Flow
Free Cash Flow	5.87B	-2.91B	1.54B	-601.09M	-2.67B	1.78B
Operating Cash Flow	8.11B	-379.50M	2.27B	-306.62M	-1.06B	3.61B
Investing Cash Flow	-3.89B	-1.45B	-1.75B	-163.37M	-1.56B	-1.59B
Financing Cash Flow	-3.48B	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 67.12, above the 50-day MA of 72.38, and above the 200-day MA of 85.87, indicating a bearish trend. The MACD of -3.08 indicates Positive momentum. The RSI at 32.38 is Neutral, neither overbought nor oversold. The STOCH value of 30.96 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	₹3.52B	7.26	―	―	51.38%	-19.06%
KHAICHEM	62 Neutral	₹5.04B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SPIC	61 Neutral	₹12.26B	7.91	―	2.46%	47.79%	74.12%
JAYAGROGN	60 Neutral	₹8.24B	22.24	―	1.23%	0.69%	-7.54%
MADRASFERT	48 Neutral	₹10.31B	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.