SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG) fair value: what the stock is really worth
As of Oct 30, 2026: fair value (intrinsic value) of SOUTHERN MAGNESIUM & CHEMICALS LTD. stock ₹15.18, price ₹71.99, upside -78.9%, quality 29 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Oct 30, 2026.
How to read this chart
60‑month range ₹9.99 – ₹468.95 · fair‑value band ₹10.74 – ₹19.72 · the ₹71.99 price screens above the ₹15.18 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Oct 30, 2026.
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Southern Magnesium and Chemicals Limited manufactures and sells magnesium metal in India. It offers downstream products, including magnesium powder, turning, and regular magnesium metal ingots. The company also provides magnesium granule, alloy, and extrusion, as well as magnesium chips.
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Southern Magnesium and Chemicals Limited was incorporated in 1985 and is based in Hyderabad, India.
Stock analysis
SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG) currently trades at ₹71.99, while our model-based Fair Value estimate is ₹15.18, 78.9% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Economic Profit group reads highest at a median of ₹25.16 per share, and 1 of the 10 models we run sit above the ₹71.99 price.
Bear case: the Earnings-Based group reads lowest at ₹5.52, and 9 of the 10 models stay below the price. Data coverage for this calculation is low.
Scenario range: ₹10.74 (bear) to ₹19.72 (bull), the price of ₹71.99 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 29/100 (below-average quality), in the Basic Materials sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
SOUTHERN MAGNESIUM & CHEMICALS LTD. reported revenue of ₹33.6M in FY2026 versus ₹23.4M in FY2022, a compound +9.5%/yr. Reported net income was ₹1.3M in FY2026, compounding −25.0%/yr from FY2022. FY2022 was a trough year, so the rate overstates the trend.
Key figures
Market cap ₹216M (≈ $2.3M) Micro · P/E ratio 178.8 · P/S ratio 6.74 · EPS (TTM) ₹−0.9200 · Net margin −8.0% · Return on equity 1.0% · Return on assets (EBIT) 25.4% · Operating margin −150%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 14 out of 100 (low confidence).
What moves the price
The share trades about 45% below its 52-week high and 15% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at 10% fair-value upside, at −79%, SOUTHMG screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (₹5.52 to ₹130.48). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear₹10.74Fair Value ₹15.18Bull₹19.72
Price ₹71.99 · Upside -78.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−73.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−26.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.8%
Start year 2021 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.9%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−20.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year−20.6%
Dividend (yield on the price)0.0%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−3% → −1%
Compare SOUTHERN MAGNESIUM & CHEMICALS LTD. with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Other Industrial Metals & Mining · 366 stocks
Beats the industry median on 4/11 measures
Overall it trails its industry peers.
Valuation
Quality Score29 · Bottom 25%
Fair Value upside−79.0% · Bottom 25%
Profitability
Return on equity (12 months)1.0% · Above median
Return on assets0.7% · Above median
Net margin (12 months)−8.0% · Bottom 25%
Operating margin (12 months)−150.5% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)45.3% · Above median
Balance sheet
Debt / equity0.01× · Lowest 25%
Valuation Multiplesvs Other Industrial Metals & Mining median · lower = cheaper
P/E (12 months)178.8× · Priciest 25%
P/B1.66× · Pricier than median
P/S (12 months)6.25× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 91
PAST (return on equity)4· sector 0
HEALTH (low debt)100· sector 95
DIVIDEND (yield)0· sector 34
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG) overvalued or undervalued?
As of Oct 30, 2026, our model estimates a fair value of ₹15.18 versus a price of ₹71.99, about −79% upside (overvalued).
What is the fair value of SOUTHMG?
Our model-based fair value for SOUTHERN MAGNESIUM & CHEMICALS LTD. is ₹15.18 (as of Oct 30, 2026), built from audited fundamentals. The current price: ₹71.99.
What is the quality score of SOUTHMG?
SOUTHERN MAGNESIUM & CHEMICALS LTD. has a Quality Score of 29/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
Our model-based price target is the fair value of ₹15.18 (as of Oct 30, 2026) from 10 valuation models. Cautious scenario ₹10.74, optimistic scenario ₹19.72. It is a calculation from audited fundamentals, not an analyst target.
What is the SOUTHERN MAGNESIUM & CHEMICALS LTD. stock forecast for 2026?
Our models put fair value at ₹15.18, about −79% upside versus a price of ₹71.99 (overvalued). Cautious scenario ₹10.74, optimistic scenario ₹19.72. The calculation is refreshed regularly with new filings.
What is the revenue of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
SOUTHERN MAGNESIUM & CHEMICALS LTD. reported trailing-twelve-month revenue of about ₹34.5M (latest available figure, as of Oct 30, 2026).
What is the intrinsic value of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For SOUTHERN MAGNESIUM & CHEMICALS LTD. it is ₹15.18 per share (as of Oct 30, 2026), against a price of ₹71.99. It is the blended result of 10 valuation models (cash flow, earnings, asset, dividend).
Is SOUTHERN MAGNESIUM & CHEMICALS LTD. stock overvalued or undervalued in 2026?
As of Oct 30, 2026, SOUTHMG trades above its calculated fair value: price ₹71.99, fair value ₹15.18, a gap of about −79% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SOUTHMG?
No. The price is what the market pays today (₹71.99); the fair value is what the company's own numbers justify (₹15.18). For SOUTHERN MAGNESIUM & CHEMICALS LTD. the two are ₹56.81 per share apart. That gap is exactly why we show both numbers side by side.
How much is SOUTHERN MAGNESIUM & CHEMICALS LTD. worth?
The market values SOUTHERN MAGNESIUM & CHEMICALS LTD. at about ₹216M (market capitalisation, as of Oct 30, 2026). Per share that is ₹71.99; our models calculate a fair value of ₹15.18 per share.
What do the bullish and bearish scenarios say about SOUTHMG?
Our models span a range for SOUTHERN MAGNESIUM & CHEMICALS LTD.: cautious scenario ₹10.74, base ₹15.18, optimistic ₹19.72 per share (as of Oct 30, 2026, price ₹71.99). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SOUTHMG?
SOUTHERN MAGNESIUM & CHEMICALS LTD. trades at a price-to-earnings ratio of 178.8 (as of Oct 30, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹15.18 is built from several models across several years. Other multiples: P/B 1.7, P/S 6.3.
How solid is the balance sheet of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
Balance-sheet figures for SOUTHERN MAGNESIUM & CHEMICALS LTD. (as of Oct 30, 2026): return on equity 1.0%, debt of 0.01 per unit of equity. They feed the Quality Score of 29/100, which measures business quality independently of the share price.
How far is SOUTHMG from its 52-week high?
SOUTHERN MAGNESIUM & CHEMICALS LTD. trades at ₹71.99, about 45% below its 52-week high of ₹131.40 and 15% above the low of ₹62.65 (as of Oct 30, 2026). Distance from the high says nothing about value: that is what the fair value of ₹15.18 is for.
Which stocks are comparable to SOUTHERN MAGNESIUM & CHEMICALS LTD.?
From the same area (Basic Materials) we also value Saudi Arabian Mining Company, CMOC Group, Hindustan Zinc Limited, Boliden AB, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is SOUTHERN MAGNESIUM & CHEMICALS LTD. stock attractive at the current price?
The data as of Oct 30, 2026: price ₹71.99, calculated fair value ₹15.18 (−79%), Quality Score 29/100, from 10 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SOUTHMG calculated?
We run SOUTHERN MAGNESIUM & CHEMICALS LTD. through 10 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹15.18, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.4 % above its aggregate fair value. SOUTHERN MAGNESIUM & CHEMICALS LTD. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
The closing price on Oct 30, 2026 was ₹71.99. Our model-based fair value is ₹15.18, about −79% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with SOUTHERN MAGNESIUM & CHEMICALS LTD. right now?
The price sits above even our optimistic bull case (₹19.72). The favourable scenario is already priced in. Weak quality (29/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. A fairly wide model range (₹10.74 to ₹19.72) leaves room in how you read the outcome.
Key figures of SOUTHERN MAGNESIUM & CHEMICALS LTD.
How large is the market capitalisation of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
The market capitalisation of SOUTHERN MAGNESIUM & CHEMICALS LTD. is ₹216M (≈ $2.3M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
The price-to-sales ratio of SOUTHERN MAGNESIUM & CHEMICALS LTD. is 6.74 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
Earnings per share at SOUTHERN MAGNESIUM & CHEMICALS LTD. are ₹−0.9200 (price ÷ EPS = P/E 178.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
The net margin of SOUTHERN MAGNESIUM & CHEMICALS LTD. is −8.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
The return on equity (ROE) of SOUTHERN MAGNESIUM & CHEMICALS LTD. is 1.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
On an EBIT basis the return on assets of SOUTHERN MAGNESIUM & CHEMICALS LTD. is 25.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
The operating margin of SOUTHERN MAGNESIUM & CHEMICALS LTD. is −150% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
Revenue at SOUTHERN MAGNESIUM & CHEMICALS LTD. is growing +45.3% versus a year earlier (3y avg −26.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG)?
Earnings per share at SOUTHERN MAGNESIUM & CHEMICALS LTD. are growing −81.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG) generate?
The free cash flow of SOUTHERN MAGNESIUM & CHEMICALS LTD. is −₹46.9M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does SOUTHERN MAGNESIUM & CHEMICALS LTD. (SOUTHMG) carry?
The net debt of SOUTHERN MAGNESIUM & CHEMICALS LTD. is ₹46.5M (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Oct 30, 2026