ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Southern Petrochemicals Industries ROE % Related Terms
Southern Petrochemicals Industries ROE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Agricultural Inputs subindustry, Southern Petrochemicals Industries's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Southern Petrochemicals Industries ROE % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Southern Petrochemicals Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Southern Petrochemicals Industries's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Southern Petrochemicals Industries (NSE:SPIC) has a ROE % of 8.61% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Southern Petrochemicals Industries and its competitors. This is 48% below median its historical median of 16.61. Over the past decade, Southern Petrochemicals Industries' ROE % has ranged from 10.97 to 35.81. According to the industry distribution chart, Southern Petrochemicals Industries ranks #50 out of 254 companies in the Agriculture industry, placing it in the top 19.7%.
Is Southern Petrochemicals Industries' ROE % too high?
Southern Petrochemicals Industries' current ROE % of 8.61% is 48% below median its 10-year median of 16.61. Over the past 10 years, this metric has ranged from a low of 10.97 to a high of 35.81. The Agriculture industry median ROE % is 6.71. Southern Petrochemicals Industries' value of 8.61% is 28.3% above this industry median. Based on the distribution chart, Southern Petrochemicals Industries ranks #50 out of 254 companies in the Agriculture industry, which is in the top quartile — a strong position relative to peers. Overall, Southern Petrochemicals Industries has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Southern Petrochemicals Industries' ROE % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Southern Petrochemicals Industries ranks #50 out of 254 companies for ROE %. This places Southern Petrochemicals Industries in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 6.71. Southern Petrochemicals Industries' value of 8.61% is 28.3% above this benchmark. Historically, Southern Petrochemicals Industries' own ROE % has ranged from 10.97 to 35.81 over the past decade. While the company's 10-year median is 16.61 vs. the industry median of 6.71, Southern Petrochemicals Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Agriculture company?
The median ROE % among Agriculture companies is 6.71, based on 254 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southern Petrochemicals Industries's current ROE % of 8.61% is 28.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Southern Petrochemicals Industries and its competitors. For the Agriculture industry, the median ROE % is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Petrochemicals Industries's current ROE % is 8.61%, which is 48% below median its own 10-year median of 16.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Petrochemicals Industries stock overvalued right now?
Based on GuruFocus' analysis, Southern Petrochemicals Industries (NSE:SPIC) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹386.89, compared to a current price of ₹69.08 — trading 82.1% below its estimated fair value. The current ROE % is 8.61%, which is 48% below median its 10-year median of 16.61 and 28.3% above the Agriculture industry median of 6.71. Southern Petrochemicals Industries' overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Southern Petrochemicals Industries (NSE:SPIC), the current ROE % is 8.61% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Southern Petrochemicals Industries (NSE:SPIC) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Petrochemicals Industries stock appears to be undervalued.
The current stock price of ₹69.08 is trading 82.1% below its estimated GF Value™ of ₹386.89.
GuruFocus considers Southern Petrochemicals Industries to be Significantly Undervalued.
Key valuation signals for NSE:SPIC:
ROE %: 8.61% (48% below median its 10-year median of 16.61)
GF Value™: ₹386.89 vs. price of ₹69.08 (82.1% below fair value)
Industry Position: 28.3% above the Agriculture median (#50 of 254)
No single metric tells the full story. See the NSE:SPIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern Petrochemicals Industries Business Description
Southern Petrochemicals Industries Corp Ltd is a manufacturer and seller of nitrogenous and phosphatic fertilizers, including urea and neem-coated urea. The company operates a large fertilizer complex in Tuticorin, Tamil Nadu, capable of producing substantial volumes to support agricultural productivity across India. SPIC also provides secondary and micronutrient fertilizers, organic fertilizers, biopesticides, and plant growth regulators to enrich soil and crop health. Its industrial by-products, such as phosphoric acid and sulfuric acid, serve other sectors like cement and aluminum production. Revenue is majorly generated from the sale of fertilizer products through an extensive dealer network serving rural and farming communities nationwide.
78GF Score
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