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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Southern Petrochemicals Industries Corporation Ltd (SPIC)

Basic Stock Data

Last Updated: June 12, 2024, 10:21 pm

Market Cap 1,614 Cr.
Current Price 79.2
High / Low108/62.0
Stock P/E11.1
Book Value 52.8
Dividend Yield1.85 %
ROCE17.5 %
ROE14.1 %
Face Value 10.0
PEG Ratio1.02

Competitors of Southern Petrochemicals Industries Corporation Ltd (SPIC)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat State Fertilizer & Chemicals Ltd 8,896 Cr. 223322/14616.8 3164.39 %5.50 %4.27 % 2.00
Sikko Industries Ltd 167 Cr. 99.3118/54.641.1 16.60.15 %20.6 %15.7 % 10.0
Gujarat Narmada Valley Fertilizers & Chemicals Ltd 10,080 Cr. 686815/53220.8 5584.32 %7.72 %5.64 % 10.0
Madhya Bharat Agro Products Ltd 1,994 Cr. 228348/21080.3 39.80.11 %12.1 %7.56 % 10.0
Mangalore Chemicals & Fertilizers Ltd 1,410 Cr. 119156/93.69.20 79.31.27 %16.6 %17.8 % 10.0
Industry Average4,509.40 Cr271.0633.64201.942.05%12.50%10.19%8.40

Chambal Fertilisers & Chemicals Ltd Quarterly Results

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales351499616492268751708699672569744506125
Expenses32945654142927466858660162048765945098
Operating Profit22437563-583122975182855627
OPM %6%9%12%13%-2%11%17%14%8%14%11%11%22%
Other Income3813121615911147111214-36
Interest138217711758821
Depreciation10131415212111110101099
Profit before tax484064627731169041788052-40
Tax %-1%8%4%4%25%2%2%1%39%34%34%36%39%
Net Profit493762605721149025515333-24
EPS in Rs2.391.823.022.930.253.535.594.401.252.522.581.63-1.19

Last Updated: June 9, 2024, 7:01 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:08 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,3441,5742,2371,9311,4991,9942,5922,0791,5271,8752,8291,944
Expenses2,3111,6622,1741,8911,4451,8832,4921,9661,4561,6992,4741,694
Operating Profit33-8863405411110011371176354249
OPM %1%-6%3%2%4%6%4%5%5%9%13%13%
Other Income1,177215113850203424585641-3
Interest553132151141363414143138
Depreciation626034323140323238444438
Profit before tax1,094378316350667077174321170
Tax %-0%-9%-37%0%9%9%4%4%4%6%6%34%
Net Profit1,0983910315745636774163301113
EPS in Rs54.001.910.511.522.812.233.093.313.648.0214.775.55
Dividend Payout %0%0%0%0%0%0%0%0%0%6%10%27%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-96.45%-74.36%210.00%83.87%-21.05%40.00%6.35%10.45%120.27%84.66%-62.46%
Change in YoY Net Profit Growth (%)0.00%22.09%284.36%-126.13%-104.92%61.05%-33.65%4.10%109.82%-35.61%-147.12%

Growth

Compounded Sales Growth
10 Years:2%
5 Years:-6%
3 Years:8%
TTM:-31%
Compounded Profit Growth
10 Years:18%
5 Years:18%
3 Years:25%
TTM:-52%
Stock Price CAGR
10 Years:16%
5 Years:28%
3 Years:20%
1 Year:20%
Return on Equity
10 Years:19%
5 Years:22%
3 Years:25%
Last Year:14%

Last Updated: June 9, 2024, 2:08 am

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow21.00-100.0051.0028.0054.00111.00100.00113.0071.00176.00354.00249.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters52.79%53.27%53.27%53.27%53.27%53.28%53.38%53.38%53.38%53.38%53.38%53.38%
FIIs0.00%0.00%0.00%0.00%0.00%0.45%0.14%0.28%0.21%0.42%0.50%0.38%
DIIs3.06%2.54%2.89%3.35%3.00%2.37%2.39%2.37%2.37%2.09%1.68%1.68%
Government0.09%0.09%0.09%0.09%0.09%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public44.06%44.09%43.73%43.28%43.62%43.90%44.09%43.97%44.04%44.10%44.44%44.56%
No. of Shareholders81,14490,10190,72591,25493,90994,42195,82999,1141,00,1441,03,3201,05,8991,24,430

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

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.)48.3034.0825.3321.3518.21
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 (%)30.5723.5314.3615.5216.98
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 (%)1.451.130.811.021.49
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
Dividend Payout Ratio (NP) (%)3.380.000.000.000.00
Dividend Payout Ratio (CP) (%)2.950.000.000.000.00
Earning Retention Ratio (%)96.620.000.000.000.00
Cash Earning Retention Ratio (%)97.050.000.000.000.00
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
Retention Ratios (%)96.610.000.000.000.00
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

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 84.17

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.27% compared to the current price 79.2

Intrinsic Value: 93.33

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 17.84% compared to the current price ₹79.2

Last 5 Year EPS CAGR: 10.89%

*Investments are subject to market risks

Strength and Weakness

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 (270.58 cr) compared to borrowings (4.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (1.42 cr) and profit (89.00 cr) over the years.
  1. The stock has a low average ROCE of 11.50%, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any 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: 12.5%)
      • 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. ROE%: 30.57% (Industry Average ROE: 10.19%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. 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.
    5. 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.
    6. Stock P/E: 11.1 (Industry average Stock P/E: 33.64)
      • 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.
    7. 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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. B NarendranIndependent Director
Ms. Sashikala SrikanthIndependent Director
Mr. S RadhakrishnanIndependent Director
Mr. Debendranath SarangiIndependent Director
Mrs. Rita ChandrasekarIndependent Director
Mr. T K ArunIndependent Director
Ms. Devaki Ashwin MuthiahDirector
Ms. Jayashree MuralidharanDirector
Mr. C SamayamoorthyDirector
Mr. V Jaya Chandra Bhanu ReddyDirector

FAQ

What is the latest fair value of Southern Petrochemicals Industries Corporation Ltd (SPIC)?

The latest fair value of Southern Petrochemicals Industries Corporation Ltd (SPIC) is ₹84.17.

What is the Market Cap of Southern Petrochemicals Industries Corporation Ltd (SPIC)?

The Market Cap of Southern Petrochemicals Industries Corporation Ltd (SPIC) is 1,614 Cr..

What is the current Stock Price of Southern Petrochemicals Industries Corporation Ltd (SPIC) as on 13 June 2024?

The current stock price of Southern Petrochemicals Industries Corporation Ltd (SPIC) as on 13 June 2024 is ₹79.2.

What is the High / Low of Southern Petrochemicals Industries Corporation Ltd (SPIC) stocks in FY 2024?

In FY 2024, the High / Low of Southern Petrochemicals Industries Corporation Ltd (SPIC) stocks is 108/62.0.

What is the Stock P/E of Southern Petrochemicals Industries Corporation Ltd (SPIC)?

The Stock P/E of Southern Petrochemicals Industries Corporation Ltd (SPIC) is 11.1.

What is the Book Value of Southern Petrochemicals Industries Corporation Ltd (SPIC)?

The Book Value of Southern Petrochemicals Industries Corporation Ltd (SPIC) is 52.8.

What is the Dividend Yield of Southern Petrochemicals Industries Corporation Ltd (SPIC)?

The Dividend Yield of Southern Petrochemicals Industries Corporation Ltd (SPIC) is 1.85 %.

What is the ROCE of Southern Petrochemicals Industries Corporation Ltd (SPIC)?

The ROCE of Southern Petrochemicals Industries Corporation Ltd (SPIC) is 17.5 %.

What is the ROE of Southern Petrochemicals Industries Corporation Ltd (SPIC)?

The ROE of Southern Petrochemicals Industries Corporation Ltd (SPIC) is 14.1 %.

What is the Face Value of Southern Petrochemicals Industries Corporation Ltd (SPIC)?

The Face Value of Southern Petrochemicals Industries Corporation Ltd (SPIC) is 10.0.

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