Stock Snapshot
Price Performance
Recommendation Rationale
Growth opportunity tempered by operational challenges.
Basis of our Recommendation
IGPL is currently facing demand weakness and margin pressure stemming from production issues and external tariff uncertainties. However, the company is planning capacity expansions that could enhance growth prospects in the future.
Why We Like This Stock
- Upcoming capacity expansions may enhance future growth prospects
Things To Watch Out For
- Experiencing a slowdown in demand
- Margin contraction due to production issues and tariff uncertainties
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,099 | 2,206 | 1,925 | 1,740 | 1,641 |
| Profit Before Tax (Cr.) | 50 | 137 | 10 | 13 | 11 |
| PBT Margin | 2.4% | 6.2% | 0.5% | 0.8% | 0.7% |
| Net Profit (Cr.) | 48 | 110 | 8 | 11 | 9 |
| EPS | 15.5 | 35.6 | 2.6 | 3.5 | 3.0 |
Company Overview
Show Company Profile
I G Petrochemicals Limited engages in the manufacture and sale of organic and inorganic chemicals in India and internationally. The company offers phthalic anhydride that is used in the manufacture of plasticizers, alkyd resins and paints, unsaturated polyester resins, and CPC pigments; and maleic anhydride, an organic compound used in the production of spandex, unsaturated polyester resins, lubricating oil additives, personal care products, water treatment detergents, and insecticides and fungicides. It also provides benzoic acid, an organic compound used in the manufacture of perfumes, dyes, insect repellants, food preservatives and personal care product; and diethyl phthalate used in the production of incense sticks, perfumes, alcohol denaturant, cosmetics formulation, solvent for fragrances, a surface lubricant in food and pharmaceutical packaging and tube used for medical purpose. In addition, its products are also used in varnishing and painting, solid rocket propellants, insecticides, as a camphor substitute, as a solvent for nitro cellulose, oling of textile fabrics, paper varnishes, floor covering, and plastic packaging films. I G Petrochemicals Limited was incorporated in 1988 and is based in Mumbai, India.