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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Southern Petrochemicals Industries Corporation Ltd (SPIC)

About the Company - Southern Petrochemicals Industries Corporation Ltd (SPIC)

Southern Petrochemicals Industries Corporation Ltd. is a Public Limited Listed company incorporated on 18/12/1969 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L11101TN1969PLC005778 and registration number is 005778. Currently Company is involved in the business activities of Manufacture of urea and other organic fertilizers. Company’s Total Operating Revenue is Rs. 1874.92 Cr. and Equity Capital is Rs. 203.64 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FertilisersSPIC House, 88 Mount Road, Chennai (Madras) Tamil Nadu 600032spiccorp@spic.co.in
http://www.spic.in
Management
NamePosition Held
Mr. Ashwin C MuthiahChairman
Mr. S R RamakrishnanWhole Time Director
Ms. Vandana GargDirector
Ms. A R RajalakshmiDirector
Mr. B NarendranIndependent Director
Ms. Sashikala SrikanthIndependent Director
Mr. S RadhakrishnanIndependent Director
Mr. Debendranath SarangiIndependent Director
Mrs. Rita ChandrasekarIndependent Director
Mr. T K ArunIndependent Director

Southern Petrochemicals Industries Corporation Ltd. Share Price Update

Share PriceValue
Today₹88.85
Previous Day₹87.16

Basic Stock Data of Southern Petrochemicals Industries Corporation Ltd (SPIC)

Market Cap 1,882 Cr.
Current Price 92.4
High / Low108/52.0
Stock P/E11.6
Book Value 52.4
Dividend Yield1.59 %
ROCE29.6 %
ROE35.9 %
Face Value 10.0

Data Source: screener.in

Competitors of Southern Petrochemicals Industries Corporation Ltd (SPIC)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Chambal Fertilisers & Chemicals Ltd 15,300 Cr. 368403/24812.0 1852.04 %16.0 %14.9 % 10.0
Aries Agro Ltd 360 Cr. 277318/14423.5 2000.36 %14.2 %6.83 % 10.0
Fertilizers & Chemicals Travancore Ltd 53,652 Cr. 829909/192123 21.80.12 %30.3 %62.5 % 10.0
Gujarat Narmada Valley Fertilizers & Chemicals Ltd 9,831 Cr. 669815/48414.2 5944.51 %22.9 %17.3 % 10.0
Zuari Agro Chemicals Ltd 938 Cr. 223260/1163.02 3790.00 %10.2 %12.8 % 10.0
Industry Average16,016.20 Cr473.2035.14275.961.41%18.72%22.87%10.00

Southern Petrochemicals Industries Corporation Ltd (SPIC) Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales429427351499616492268751708699672569744
Expenses415413329456541429274668586601620487659
Operating Profit141322437563-58312297518285
OPM %3%3%6%9%12%13%-2%11%17%14%8%14%11%
Other Income9838131216159111471112
Interest55138217711758
Depreciation99101314152121111101010
Profit before tax1084840646277311690417880
Tax %14%18%-1%8%4%4%25%2%2%1%38%34%34%
Net Profit864937626057211490255153
EPS in Rs0.420.312.391.823.022.930.253.535.594.401.252.522.58

Southern Petrochemicals Industries Corporation Ltd (SPIC) Quarterly Chart

Southern Petrochemicals Industries Corporation Ltd (SPIC) Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,7132,3441,5742,2371,9311,4991,9942,5922,0791,5271,8752,8292,490
Expenses2,6002,3111,6622,1741,8911,4451,8832,4921,9661,4561,6992,4742,217
Operating Profit11333-8863405411110011371176354274
OPM %4%1%-6%3%2%4%6%4%5%5%9%13%11%
Other Income601,17721511385020342458564149
Interest88553132151141363414143133
Depreciation60626034323140323238444439
Profit before tax251,094378316350667077174321251
Tax %106%-0%-9%-37%0%9%9%4%4%4%6%6%
Net Profit-21,0983910315745636774163301163
EPS in Rs-0.1354.001.910.511.522.812.233.093.313.648.0214.777.98
Dividend Payout %0%0%0%0%0%0%0%0%0%0%6%10%

Southern Petrochemicals Industries Corporation Ltd (SPIC) Profit & Loss Yearly Chart

Southern Petrochemicals Industries Corporation Ltd (SPIC) Growth

Compounded Sales Growth
10 Years:2%
5 Years:7%
3 Years:11%
TTM:3%
Compounded Profit Growth
10 Years:21%
5 Years:47%
3 Years:65%
TTM:-42%
Stock Price CAGR
10 Years:23%
5 Years:32%
3 Years:58%
1 Year:43%
Return on Equity
10 Years:18%
5 Years:25%
3 Years:28%
Last Year:36%

Southern Petrochemicals Industries Corporation Ltd (SPIC) Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital166204204204204204204204204204204204204
Reserves-1,119734427396141167231312490782864
Preference Capital12121212120000000
Borrowings1,252236490137130536263400408104305401539
Other Liabilities7825278101,0461,2414158671,2641,2511,100693816256
Total Liabilities1,0829731,5371,4291,6481,2501,4752,0352,0931,7201,6922,2021,863
Fixed Assets631587360344324263247233353525682657639
CWIP342326332723356926182127
Investments31211101066748898114174192217
Other Assets4143521,1401,0421,2868981,1191,6451,6161,0628341,352981
Total Assets1,0829731,5371,4291,6481,2501,4752,0352,0931,7201,6922,2021,863

Southern Petrochemicals Industries Corporation Ltd (SPIC) Reserves and Borrowings Chart

Southern Petrochemicals Industries Corporation Ltd (SPIC) Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 65101-32339443-34833067136361-106-31
Cash from Investing Activity 37486-6-13-20-40-101-151-159-156-16
Cash from Financing Activity -475-78292-394-18360-2901026-18818958
Net Cash Flow-3732-25-612-8-069-814-7311

Southern Petrochemicals Industries Corporation Ltd (SPIC) Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days46751322922201
Inventory Days313083393310665434216013840
Days Payable7059259248373171254276364425150108
Cash Conversion Cycle-34-23-170-204-327-43-180-231-321-263-12-67
Working Capital Days-83-1662-4-467221211-66-638
ROCE %17%-3%-3%7%7%7%12%15%13%13%23%30%

Southern Petrochemicals Industries Corporation Ltd (SPIC) Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

Southern Petrochemicals Industries Corporation Ltd (SPIC) ROCE Trend

Southern Petrochemicals Industries Corporation Ltd (SPIC) EPS Trend

Southern Petrochemicals Industries Corporation Ltd (SPIC) Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)14.838.753.983.142.60
Diluted EPS (Rs.)14.838.753.983.142.60
Cash EPS (Rs.)15.868.244.074.254.05
Book Value[Excl.RevalReserv]/Share (Rs.)48.4134.0825.3321.3518.21
Book Value[Incl.RevalReserv]/Share (Rs.)48.4134.0825.3321.3518.21
Revenue From Operations / Share (Rs.)138.9192.0774.98102.10127.28
PBDIT / Share (Rs.)18.399.444.916.055.95
PBIT / Share (Rs.)16.247.263.034.474.37
PBT / Share (Rs.)14.726.562.342.802.62
Net Profit / Share (Rs.)13.716.052.192.672.47
NP After MI And SOA / Share (Rs.)14.778.023.643.313.09
PBDIT Margin (%)13.2310.256.545.924.67
PBIT Margin (%)11.697.884.044.383.43
PBT Margin (%)10.597.123.112.742.05
Net Profit Margin (%)9.876.572.922.611.94
NP After MI And SOA Margin (%)10.638.714.853.242.43
Return on Networth / Equity (%)30.5023.5314.3615.5216.98
Return on Capital Employeed (%)29.4319.3311.2619.6016.84
Return On Assets (%)13.659.654.323.223.09
Long Term Debt / Equity (X)0.100.050.000.000.34
Total Debt / Equity (X)0.400.430.200.640.98
Asset Turnover Ratio (%)1.481.130.811.021.49
Current Ratio (X)1.040.760.750.870.99
Quick Ratio (X)0.830.280.450.790.86
Inventory Turnover Ratio (X)5.653.023.457.248.08
Interest Coverage Ratio (X)12.1113.557.063.613.39
Interest Coverage Ratio (Post Tax) (X)10.039.694.152.592.41
Enterprise Value (Cr.)1533.041705.07590.78448.20807.43
EV / Net Operating Revenue (X)0.540.900.380.210.31
EV / EBITDA (X)4.098.875.913.646.67
MarketCap / Net Operating Revenue (X)0.400.770.390.110.19
Price / BV (X)1.172.101.150.551.40
Price / Net Operating Revenue (X)0.400.770.390.110.19
EarningsYield0.260.110.120.270.12

Southern Petrochemicals Industries Corporation Ltd (SPIC) Profitability Ratios (%)

Southern Petrochemicals Industries Corporation Ltd (SPIC) Liquidity Ratios

Southern Petrochemicals Industries Corporation Ltd (SPIC) Liquidity Ratios (%)

Southern Petrochemicals Industries Corporation Ltd (SPIC) Interest Coverage Ratios (X)

Southern Petrochemicals Industries Corporation Ltd (SPIC) Valuation Ratios

Fair Value / Intrinsic Value of Southern Petrochemicals Industries Corporation Ltd (SPIC)

Fair Value: ₹221.68

The stock is undervalued by 139.92% compared to the current price ₹92.4

*Investments are subject to market risks

Strength and Weakness of Southern Petrochemicals Industries Corporation Ltd (SPIC)

StrengthWeakness
  1. The stock has a low average Working Capital Days of -0.50, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -156.25, which is a positive sign.
  3. The company has higher reserves (163.08 cr) compared to borrowings (4.62 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (1.54 cr) and profit (90.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 7.07 and average Dividend Yield of 6.28%.
  2. The stock has a low average ROCE of 11.50%, which may not be favorable.

Should I Buy Southern Petrochemicals Industries Corporation Ltd (SPIC) Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Southern Petrochemicals Industries Corporation Ltd (SPIC):
    1. Net Profit Margin: 9.87%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 29.43% (Industry Average ROCE: 17.72%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 10.03
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.83
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 11.9 (Industry average Stock P/E: 17.83)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.40
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Southern Petrochemicals Industries Corporation Ltd (SPIC). Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE