Check Before You Invest : IOL Chemicals And Pharmaceuticals Ltd

Q: Which industry/sub-sector does IOL Chemicals And Pharmaceuticals Ltd belong to?

IOL Chemicals And Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q: Is IOL Chemicals And Pharmaceuticals Ltd a good quality company?

IOL Chemicals And Pharmaceuticals Ltd is a weak quality company, based on a inconsistent 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: Is IOL Chemicals And Pharmaceuticals Ltd undervalued or overvalued?

IOL Chemicals And Pharmaceuticals Ltd appears 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. Price to Earnings, Current: 25.86, Historic Median: 19.09. Price to Book, Current: 1.98, Historic Median: 1.49. Price to Sales, Current: 1.53, Historic Median: 1.14. EV to EBITDA, Current: 12.03, Historic Median: 9.46

Q: Is IOL Chemicals And Pharmaceuticals Ltd a good buy now?

IOL Chemicals And Pharmaceuticals 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

Q: Revenue growth of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd revenue growth is -2.5% for FY-2025, which is below its 3-year CAGR of -1.63%, indicating slower growth.

Q: Gross Profit margin of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.1% for FY-2025, which is in line with its 3-year median of 10.6%, indicating stable margins.

Q: Operating Profit Margin of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.74% for FY-2025, which is in line with its 3-year median of 10.21% indicating stable margins.

Q: Net Profit Margin of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Net Profit Margin is 4.86% for FY-2025, is below its 3-year median of 6.28%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 10.1, Historic Median: 10.6. Operating Profit Margin (%), Current: 9.74, Historic Median: 10.21. Net Profit Margin (%), Current: 4.86, Historic Median: 6.28

Q: Return on Asset of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Return on Asset is 4.31%, which is below its 3-year historical median of 6.18%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Return on capital employed is 8.86% for FY-2025, which is below its 3-year historical median of 12.24%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : IOL Chemicals And Pharmaceuticals Ltd

Snapshot

Q.1 Which industry/sub-sector does IOL Chemicals And Pharmaceuticals Ltd belong to?

IOL Chemicals And Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is IOL Chemicals And Pharmaceuticals Ltd a good quality company?

IOL Chemicals And Pharmaceuticals Ltd is a weak quality company, based on a inconsistent 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 IOL Chemicals And Pharmaceuticals Ltd undervalued or overvalued?

IOL Chemicals And Pharmaceuticals Ltd appears 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	3-year Historic Median
Price to Earnings	25.86	19.09
Price to Book	1.98	1.49
Price to Sales	1.53	1.14
EV to EBITDA	12.03	9.46

Q.4 Is IOL Chemicals And Pharmaceuticals Ltd a good buy now?

IOL Chemicals And Pharmaceuticals 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 IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd revenue growth is -2.5% for FY-2025, which is below its 3-year CAGR of -1.63%, indicating slower growth.

Q.2 Gross Profit margin of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.1% for FY-2025, which is in line with its 3-year median of 10.6%, indicating stable margins.

Q.3 Operating Profit Margin of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.74% for FY-2025, which is in line with its 3-year median of 10.21% indicating stable margins.

Q.4 Net Profit Margin of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Net Profit Margin is 4.86% for FY-2025, is below its 3-year median of 6.28%, indicating decreasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	10.1	10.6
Operating Profit Margin (%)	9.74	10.21
Net Profit Margin (%)	4.86	6.28

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Return on Asset is 4.31%, which is below its 3-year historical median of 6.18%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Return on capital employed is 8.86% for FY-2025, which is below its 3-year historical median of 12.24%. 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 IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Return on equity is 6.13% for FY-2025, which is below its 3-year historical median of 8.62%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Cash conversion cycle is 68 days, below its 3-year historical median of 75 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	0.89	0.98
ROE (%)	6.13	8.62
ROCE (%)	8.86	12.24
Cash Conversion Cycle	68 days	75 days

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

Q.9 Debt to Equity ratio of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Debt-to-Equity ratio is 0.07, which is lower the industry average of 0.14, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of IOL Chemicals And Pharmaceuticals Ltd?

IOL Chemicals And Pharmaceuticals Ltd Debt to cash flow from operations is 0.66, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of IOL Chemicals And Pharmaceuticals Ltd?

Q.1 Promoter shareholding and pledge status of IOL Chemicals And Pharmaceuticals Ltd?

Promoters hold 57.48% of the IOL Chemicals And Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does IOL Chemicals And Pharmaceuticals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of IOL Chemicals And Pharmaceuticals Ltd vs industry peers?

IOL Chemicals And Pharmaceuticals Ltd revenue CAGR is -1.63%, compared to the industry median CAGR of 6.81%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-2.5	6.8
Gross Profit Growth (%)	-14.3	12.6
Operating Profit Growth (%)	-12.6	9.5
Net Profit Growth (%)	-24.6	8.6

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	0.89	0.75
ROE (%)	6.13	9.05
ROCE (%)	8.86	11.33
Cash Conversion Cycle (days)	68.48	83

Valuation & price assessment

Q.1 Stock return of IOL Chemicals And Pharmaceuticals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 17.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	17.7%	-0.8%	11.1%	37.7%

Q.2 Valuation ratios of IOL Chemicals And Pharmaceuticals Ltd vs historical?

The current P/E ratio of 25.86 is higher than its historical median of 19.09, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	25.86	19.09	33.73
Price to Book	1.98	1.49	3.09
Price to Sales	1.53	1.14	3.38
EV to EBITDA	12.03	9.46	16.04

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Check Before You Invest : IOL Chemicals And Pharmaceuticals Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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