Southern Magnesium and Chemicals Limited (SOUTHMG.BO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+18.9%

₹84.43

vs ₹71.00 price

Levered DCF

-₹28.83

After debt service

Piotroski score

1 / 9

Weak

Altman Z-score

—

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	149.17×	13.03×	20.36×	17.17×	151.92×	-651.77×	-262.4×	44.31×
P/B	1.44×	3.23×	6.97×	9.48×	21.16×	24.6×	23.71×	21.75×
P/S	5.6×	3.35×	7.16×	7.07×	25.93×	30.12×	38.23×	13.72×
EV / EBITDA	31.11×	10.03×	15.26×	12.13×	93.49×	907.05×	-373.46×	33.22×
Gross margin	11.7%	37.8%	50.1%	63.2%	66.0%	49.5%	55.2%	49.7%
Operating margin	-0.5%	31.0%	44.4%	56.1%	22.4%	-2.7%	-18.1%	39.2%
Net margin	3.8%	25.7%	35.2%	41.2%	17.1%	-4.6%	-14.6%	31.0%
Current ratio	2.38×	2.55×	2.78×	3.46×	2.96×	2.64×	4.86×	4.82×
Debt / equity	0.36×	0.25×	0.25×	0.03×	0.4×	0.55×	0.28×	0.2×
Interest coverage	-0.05×	26.18×	42.32×	437.02×	8.76×	-0.61×	-3.37×	21.65×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	1.0%	24.7%	34.2%	55.2%	14.0%	-3.8%	-9.0%	49.1%
Return on invested capital	-0.1%	17.8%	25.8%	121.9%	10.3%	-1.1%	-5.7%	41.3%
Return on assets	0.7%	16.3%	25.6%	46.4%	9.2%	-2.3%	-6.6%	35.9%
Free cash flow yield	-23.9%	12.2%	-4.6%	7.1%	0.6%	0.2%	-0.8%	1.8%
Earnings yield	0.7%	7.7%	4.9%	5.8%	0.7%	-0.2%	-0.4%	2.3%
Enterprise value	₹204M	₹449.6M	₹702.1M	₹599.5M	₹617.5M	₹619.5M	₹613M	₹611.1M
Net debt / EBITDA	2.45×	0.73×	0.52×	-0.13×	1.72×	19.56×	-4.17×	0.27×
Cash conversion cycle (days)	1,040	372	549	252	1,011	788	1,241	384