India Glycols
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
India Glycols Limited (IGL) is navigating a complex landscape marked by strategic initiatives and market dynamics that shape its financial outlook. Management's focus on premiumization in the spirits segment and scaling bio-based specialty chemicals is pivotal for revenue growth, supported by the national ethanol blending program, which enhances its competitive position. The ongoing demerger aims to streamline operations, allowing for more targeted capital allocation and improved margins. Despite facing margin pressures in the API/Nutraceutical segment, IGL's commitment to R&D in 'CarbonSmart' technologies positions it well for long-term growth. Vista's forecast reflects stable revenue growth aligned with historical performance, while improving margins are anticipated as operational efficiencies take hold. The brewery industry's expanding growth state, coupled with favorable liquor policy changes, further supports IGL's outlook. However, rising packaging costs and potential demand volatility in industrial chemicals remain watchpoints. Over the next 12-24 months, IGL's ability to leverage its integrated manufacturing capabilities and capitalize on emerging market trends will be crucial for sustaining its growth trajectory
Why We Like This Stock
- Management's focus on premiumization and bio-based chemicals supports revenue growth
- The national ethanol blending program enhances IGL's competitive edge
- Ongoing demerger and R&D investments are expected to improve operational efficiency and margins
Things To Watch Out For
- Margin pressures in the API/Nutraceutical segment could impact profitability
- Rising packaging costs may challenge overall margins
- Potential demand volatility in industrial chemicals poses risks to revenue stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,294 | 3,768 | 4,211 | 4,248 | 4,751 |
| Profit Before Tax (Cr.) | 231 | 301 | 376 | 446 | 480 |
| PBT Margin | 7.0% | 8.0% | 892.9% | 10.5% | 10.1% |
| Net Profit (Cr.) | 179 | 282 | 355 | 422 | 455 |
| Earnings Per Share | 26.7 | 42.1 | 53.0 | 63.0 | 67.9 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
India Glycols Limited, a green petrochemical company, manufactures and sells industrial chemicals in India. It operates through Bio-based Specialities and Performance Chemicals, Potable Spirits, and Ennature Biopharma segments. The company offers bio mono ethylene, di ethylene, and tri ethylene glycols; ethyl/butyl glycol ethers and acetates, and brake fluids; bio-polymers comprising guar and natural gums; biofuels; specialty chemicals, such as plasticisers, oil fields chemicals, bio-amines, methyl soyate, MDEA and MDEA derivatives, bio-potash granules, and C-Smart specialty products; molasses and grain based extra neutral alcohol; and specialty gases, including industrial and medical oxygen, food grade and industrial carbon dioxide, liquid argon and nitrogen, ethylene oxide, and bio ethylene oxide. It also provides Indian made foreign liquor, such as whiskey under Soulmate Blu and Single Reserve brands; vodka under Amazing brand; and rum under Zumba and Beach House XXX brands, as well as economy spirits under Bunty brand, and branded country liquor. In addition, the company offers natural active pharmaceutical ingredients, nutraceuticals, standardized botanical extracts, and nicotine derivatives. Further, its products find applications in pharma and healthcare; textiles; automotive; personal care; industrial and manufacturing; paints and coatings; oil and gas; food ingredients; packaging; potable spirits; and other various industries. The company also exports its products. The company was formerly known as UP Glycols Limited and changed its name to India Glycols Limited in August 1986. India Glycols Limited was incorporated in 1983 and is headquartered in Noida, India.