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Check Before You Invest : India Glycols Ltd

BSE: 500201 NSE: INDIAGLYCO ISIN: INE560A01023
  |   Sector:  FMCG   |   Industry:  Breweries & Distilleries

Snapshot

Q.1 Which industry/sub-sector does India Glycols Ltd belong to?
India Glycols Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.
Q.2 Is India Glycols Ltd a good quality company?
India Glycols Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is India Glycols Ltd undervalued or overvalued?
India Glycols Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 34.74 21.27
Price to Book 3.08 1.72
Price to Sales 0.8 0.40
EV to EBITDA 15.2 11.21
Q.4 Is India Glycols Ltd a good buy now?
India Glycols Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of India Glycols Ltd?
India Glycols Ltd revenue growth is 14.5% for FY-2025, which is above its 5-year CAGR of 6.78%, indicating faster growth.

Q.2 Gross Profit margin of India Glycols Ltd?
India Glycols Ltd Gross profit margin which is the profit after deduction of direct costs, is 4% for FY-2025, which is above its 5-year median of 3.6%, indicating increasing margins.

Q.3 Operating Profit Margin of India Glycols Ltd?
India Glycols Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.57% for FY-2025, which is above its 5-year median of 12.44% indicating increasing margins.

Q.4 Net Profit Margin of India Glycols Ltd?
India Glycols Ltd Net Profit Margin is 4.79% for FY-2025, is in line with its 5-year median of 4.61%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4 3.6
Operating Profit Margin (%) 14.57 12.44
Net Profit Margin (%) 4.79 4.61

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of India Glycols Ltd?
India Glycols Ltd Return on Asset is 3.26%, which is above its 5-year historical median of 3.09%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of India Glycols Ltd?
India Glycols Ltd Return on capital employed is 12.14% for FY-2025, which is above its 5-year historical median of 11.39%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of India Glycols Ltd?
India Glycols Ltd Return on equity is 10.06% for FY-2025, which is above its 5-year historical median of 9.19%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of India Glycols Ltd?
India Glycols Ltd Cash conversion cycle is -54 days, below its 5-year historical median of -45 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.63 1.58
ROE (%) 10.06 9.19
ROCE (%) 12.14 11.39
Cash Conversion Cycle -54 days -45 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of India Glycols Ltd?
India Glycols Ltd Debt-to-Equity ratio is 0.96, which is above the industry average of 0.29, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of India Glycols Ltd?
India Glycols Ltd Debt to cash flow from operations is 4.98, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of India Glycols Ltd?

Q.1 Promoter shareholding and pledge status of India Glycols Ltd?
Promoters hold 59.63% of the India Glycols Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does India Glycols Ltd performance compare with that of its Peers?

Q.1 Revenue growth of India Glycols Ltd vs industry peers?
India Glycols Ltd revenue CAGR is 6.78%, compared to the industry median CAGR of 15.31%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 14.5 15.3
Gross Profit Growth (%) 17.8 12.5
Operating Profit Growth (%) 27.4 13.1
Net Profit Growth (%) 18.4 12.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.63 0.98
ROE (%) 10.06 8.17
ROCE (%) 12.14 11.85
Cash Conversion Cycle (days) -54.03 6

Valuation & price assessment

Q.1 Stock return of India Glycols Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 38.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
38.4% 35.2% 59% 64.7%
Q.2 Valuation ratios of India Glycols Ltd vs historical?
The current P/E ratio of 34.74 is higher than its historical median of 21.27, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 34.74 21.27 35.77
Price to Book 3.08 1.72 2.22
Price to Sales 0.8 0.40 1.61
EV to EBITDA 15.2 11.21 13.44

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