Southern Petrochemicals Industries Corporation Analysis

dividend

Pros

Cons

• Unable to evaluate Southern Petrochemical Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Southern Petrochemical Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Southern Petrochemical Industries is profitable, therefore cash runway is not a concern.
• Southern Petrochemical Industries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (77.8%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 4.9x debt.
• Southern Petrochemical Industries's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (87% vs 67% today).

Cons

• Southern Petrochemical Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).
• Southern Petrochemical Industries's level of debt (67%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Southern Petrochemical Industries board of directors is about average.
• Sllaipillayarputhur's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Sllaipillayarputhur's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Southern Petrochemical Industries is not covered by any analysts.
• Southern Petrochemical Industries has significant price volatility in the past 3 months.

past

Pros

• Southern Petrochemical Industries has delivered over 20% year on year earnings growth in the past 5 years.
• Southern Petrochemical Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Southern Petrochemical Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Southern Petrochemical Industries used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Southern Petrochemical Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Southern Petrochemical Industries's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.

value

Pros

• Southern Petrochemical Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Southern Petrochemical Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Southern Petrochemical Industries is good value based on assets compared to the IN Chemicals industry average.
• Southern Petrochemical Industries is good value based on earnings compared to the IN Chemicals industry average.
• Southern Petrochemical Industries is good value based on earnings compared to the India market.
• BSE:590030 is up 10.6% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:590030 is up 10.6% outperforming the market in India which returned 8% over the past month.

Cons

• 590030 underperformed the Chemicals industry which returned 2.2% over the past year.
• 590030 underperformed the Market in India which returned -14.5% over the past year.