Risk factor
Limited trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Southern Petrochemical Industries Corporation Limited (SPIC) is a prominent manufacturer and distributor of fertilizers, serving both the Indian and international markets. The company's operations are divided into two primary segments: Agro inputs, which primarily focuses on Urea operations, and a broader Agri Business segment. SPIC offers a comprehensive range of products including essential chemical fertilizers like urea, di-ammonium phosphate (DAP), ammonium phosphate sulphate (APS), super phosphate, and ammonium chloride. Additionally, its portfolio encompasses secondary nutrients, water-soluble, organic, and organic liquid fertilizers, micronutrients, along with bio-pesticides and bio-fertilizers. Beyond agriculture, SPIC produces industrial goods such as gypsum, aluminum fluoride, and silica, and is also involved in the tissue culture business. The company further supports farmers through various agricultural services, including soil management, a dedicated training center, a specialized journal, agri clinics, and SMS-based support. Southern Petrochemical Industries Corporation Limited was established in 1969 and maintains its headquarters in Chennai, India.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT