South. Magnesium

BSE: SOUTHMG · Industrial Minerals

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52W Range₹61 – ₹131

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Snapshot

Unlock South. Magnesium's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Southern Magnesium and Chemicals Limited specialises in the manufacturing and sale of magnesium metal, including granules, powders, and turnings. The company serves diverse industrial sectors such as steel, chemicals, and pharmaceuticals by providing high-purity magnesium products.

Business Model

The company generates revenue through the production and sale of magnesium-based chemicals used for desulphurization and chemical synthesis. It operates a manufacturing facility in Telangana and serves both domestic and international markets.

  • Establishment Year:1985

Growth Outlook

Growth is driven by the sustained demand for high-purity magnesium in the steel and pharmaceutical industries. The company maintains a niche market position by focusing on specialised magnesium-based chemical applications.

Key Risks

  • Raw Material Price Volatility. Fluctuations in the cost of magnesium raw materials can significantly impact operating margins.
  • Sectoral Dependency. The company's performance is closely tied to the cyclical demand from the steel and chemical manufacturing industries.
  • Regulatory and Environmental Compliance. Stringent environmental regulations regarding chemical manufacturing processes may increase operational costs.
  • Market Competition. The niche nature of the business faces potential competition from larger domestic and international chemical suppliers.

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Key Metrics

REVENUE

₹7 Cr

TTM · standalone

-52.3%YoY

NET PROFIT

₹2 Cr

TTM · standalone

-64.1%YoY

EPS

₹5.52

TTM · standalone

-64.3%YoY

RETURN ON EQUITY

15.8%

TTM · standalone

-48.3 ppYoY

P/E

14.0x

Q1 FY26 · standalone

14.0 vs -38.2x5Y avg

EV/EBITDA

11.0x

Q1 FY26 · standalone

11.0 vs 68.3x5Y avg

EBITDA MARGIN

37.2%

TTM · standalone

-7.9 ppYoY

NET PROFIT MARGIN

6.9%

Q3 FY26 · standalone

-13.2 ppYoY

DEBT TO EQUITY

0.2x

Q2 FY26 · standalone

+0.06xYoY

Peers · Industrial Minerals

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
South. MagnesiumSOUTHMG
₹24 Cr13.9811.00-52.3%37.2%15.8%60.4%-22.6%
MOIL LimitedMOIL
₹5,061 Cr15.598.995.8%36.9%11.4%14.0%-36.8%
The Orissa Minerals Development Company LimitedORISSAMINE
₹2,305 Cr638.74109.1547.4%21.6%-6.3%18.5%-25.4%
20 Microns20MICRONS
₹774 Cr10.806.492.4%13.7%14.8%21.1%-3.1%
Nile LimitedNILE
₹431 Cr7.715.6717.0%6.7%16.7%22.4%-30.4%
Goa CarbonGOACARBON
₹368 Cr-7.87-51.94-2.9%-1.7%-24.3%-6.5%-9.1%

As of Q1 FY26

Financials