Southern Magnesium and Chemicals Ltd
Ticker: SOUTHMG
Risky
48/100
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Investing Reference
Price
100.00
Market Cap
30.00
Debt/Equity
0.2546
ROE %
28.269
PB
2.3220
Promoter %
50.939
Pledge %
0.000
1Y Rev Growth %
32.518
5Y Rev Growth %
51.665
NP Margin %
24.615
NP Margin 5Y Avg %
22.138
Trading Reference
1M Return %
-13.601
6M Return %
-35.484
1Y Return %
-71.522
% Away 52W High
264.950
% Away 52W Low
16.891
Daily Volume
2410
Investment Verdict
Buy
Score 81/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 24/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
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Business Overview
Southern Magnesium and Chemicals Ltd is a leading manufacturer of high-quality magnesium products in India, catering to various industries including automotive, aerospace, and agriculture. The company is committed to sustainable practices and innovation, ensuring that its products meet international standards. With a focus on customer satisfaction and technological advancement, Southern Magnesium plays a crucial role in enhancing the efficiency of its clients' operations. This makes it an essential partner for businesses looking to improve performance and sustainability.
- Leading manufacturer of magnesium products in India
- Serves diverse industries like automotive and aerospace
- Commitment to sustainable and innovative practices
- Focus on customer satisfaction and quality
- Enhances operational efficiency for clients
Investment Thesis
Southern Magnesium and Chemicals Ltd presents a compelling investment opportunity driven by a strong promoter group with a credible track record, significant growth potential in digital services, and attractive valuations compared to its peers. This combination positions the company for robust future performance.
- Strong promoter group with a proven history of success.
- Expanding digital services portfolio offers substantial growth opportunities.
- Attractive valuation metrics compared to industry peers.
- Focus on sustainable practices aligns with market trends.
- Potential for high returns as the company capitalizes on emerging markets.
Opportunity vs Risk
Opportunities
- Growing demand for magnesium products
- Expansion into new markets
- Government support for manufacturing
- Innovative production techniques
- Strategic partnerships with industry leaders
Risks ⚠️
- Volatile raw material prices
- Regulatory changes impact operations
- Dependence on few key customers
- Competition from established players
- Economic downturn affecting demand
Peer Perspective
Southern Magnesium and Chemicals Ltd trades at a discount to peers like Tata Chemicals and Aditya Birla, primarily due to margin volatility; a stable margin outlook could trigger a rerating in its valuation.
Future Outlook
Southern Magnesium and Chemicals Ltd is well-positioned for growth, driven by increasing demand for sustainable materials. Successful execution of their expansion plans and effective cost control will be crucial for realizing this potential.
AI FAQs for Retail Users
- Q: What does Southern Magnesium and Chemicals Ltd do?A: The company specializes in producing magnesium and chemical products for various industries.
- Q: Is Southern Magnesium and Chemicals Ltd listed on stock exchanges?A: Yes, it is listed on Indian stock exchanges, allowing public trading of its shares.
- Q: What factors influence the stock price of Southern Magnesium and Chemicals Ltd?A: Stock price can be influenced by market demand, company performance, and broader economic conditions.
- Q: Are there any risks associated with investing in this stock?A: Like all investments, risks include market volatility, industry competition, and regulatory changes.
- Q: How can I invest in Southern Magnesium and Chemicals Ltd?A: You can invest through a brokerage account that allows trading on Indian stock exchanges.
📊 Stock Investment Checklist (100 Points)
Southern Magnesium and Chemicals Ltd • Updated: 2025-09-17 16:57:40
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8BusinessHighThe sector is emerging with potential but lacks a strong moat.
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10GrowthHighRevenue growth has been inconsistent with fluctuating profits.
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10ProfitabilityHighROE and ROCE are below industry averages, cash flow is volatile.
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9ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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6BalanceGoodDebt levels are manageable but liquidity is a concern.
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7GovernanceHighPromoter holding is decent but there are concerns about disclosures.
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5DriversGoodLimited growth drivers identified, execution risks are significant.
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1TechnicalsLowMarket sentiment is weak with low liquidity.
Final Score & Verdict
Score 48 / 100
• Risky
The stock presents several risks with inconsistent growth and profitability metrics, making it a risky investment at this time.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 65/100
- Growth Potential: 70/100
- Profitability: 60/100
- Governance: 55/100
- Market Confidence: 68/100