IG Petrochemicals Ltd Stock Analysis

BSE: 500199 | NSE: IGPL | Chemicals | Small Cap

BSE Share Price May 20, 17:13
678.45 38.60 (6.03%)

DeciZen - Make an Informed Decision on IG Petrochem.

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

FAQs

1. Is IG Petrochemicals Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that IG Petrochemicals Ltd is a average quality company.

2. Is IG Petrochemicals Ltd undervalued or overvalued?

The key valuation ratios of IG Petrochemicals Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is IG Petrochemicals Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of IG Petrochemicals Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of IG Petrochem.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
IG Petrochemicals Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 10%10.1%8%11.7%19.9%25.2%29.8%18.2%4.1%22.3%-
Value Creation Index -0.3-0.3-0.4-0.20.40.81.10.3-0.70.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 8869701,2041,1879531,0371,1441,3041,0591,1241,790
YoY Gr. Rt. %-9.5%24.1%-1.5%-19.7%8.9%10.3%13.9%-18.8%6.1%-
Adj EPS 6.48.44.77.720.731.947.7387.261.195.3
YoY Gr. Rt. %-30.5%-43.8%63.5%169.2%54.7%49.5%-20.4%-81.1%749%-
BVPS (₹) 74.275.276.277.694.7127.5171.5204.2205.9265.7320.9
Adj Net Profit 19.725.714.523.663.698.414711722.2188293
Cash Flow from Ops. 32.32928.174.369.595.119814783.9145-
Debt/CF from Ops. 1.65.97.42.11.70.90.31.12.30.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 2.7%3.4%-0.6%6.1%
Adj EPS 28.5%24.2%8.6%749%
BVPS 15.222.915.729
Share Price 41.3% 11.8% 37.7% 27.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 7.8105.69.52428.831.920.23.525.932.5
Op. Profit Mgn % 4.96.156.812.415.723.617.17.126.424.5
Net Profit Mgn % 2.22.71.226.79.512.992.116.816.4
Debt to Equity 0.20.70.90.60.40.20.10.30.30.2-
Working Cap Days 69758387878288921151200
Cash Conv. Cycle 31404222138131610

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 32.50%

Sales growth is good in last 4 quarters at 96.55%

Sales growth has been subdued in last 3 years -0.60%

Net Profit has been subdued in last 3 years 8.59%

Latest Financials - IG Petrochemicals Ltd.

Standalone Consolidated
TTM EPS (₹) 95.3 94.4
TTM Sales (₹ Cr.) 1,790 1,790
BVPS (₹.) 320.9 321.3
Reserves (₹ Cr.) 957 959
P/BV 1.99 1.99
PE 6.71 6.78
From the Market
52 Week Low / High (₹) 502.55 / 1017.90
All Time Low / High (₹) 1.90 / 1017.90
Market Cap (₹ Cr.) 1,970
Equity (₹ Cr.) 30.8
Face Value (₹) 10
Industry PE 34.4

Management X-Ray of IG Petrochem. :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About IG Petrochemicals Ltd

Incorporated in the year 1988, IG Petrochemicals (IGPL) has relentlessly marched towards achieving its goals and objectives.

Adherence to international standards while producing Phthalic Anhydride and persistent stress on quality has made them a respected name in international markets. Strict quality control standards are its hallmark.

IGPL’s manufacturing plant is located at Taloja in Maharashtra. This is the largest plant for phthalic anhydride in India and is comparable to the international plant sizes of 35,000 tpa.

The company enhanced its production capacity from 45,000 MTPA to 1,10,000 MTPA to tap growing national and export markets. It constantly strives to grow and expand as an organization, setting new standards. They are Six-Sigma practicing company with ISO 9000/2000 certification.

The company is planning to increase its capacity on a mega scale and diversify into petrochemicals.

Phthalic Anhydride is recycled to manufacture Maleic Anhydride. Similarly, the Phthalic Anhydride distillation residues, like high boiling residue and low boiling residue, are mixed together and fired in the heat transfer oil heater along with the furnace oil as fuel in a move to keep the environment clean.

In September 1991, IGPL came out with a public issue of 1.06 crore equity shares at par aggregating Rs 10.61 crore. The proceeds of the issue were utilized to part-finance a Rs 61.85-cr 100% EOU for the manufacture of phthalic anhydride with a licensed capacity of 45,000 tpa.

Product range:

Phthalic Anhydride -- The company’s principal business revolves around the production of Phthalic Anhydride, which is mainly used in the manufacture of Plasticizers for production of PVC products, shoe soles and other commodities.

Phthalic Anhydride is a principal commercial form of phthalic acid, discovered in 1836. It was the first anhydride reaction of Phthalic Anhydride is with alcohols or diols to give esters or of a dicarboxylic acid to be used commercially, and is comparable in its importance to acetic acid. The most important polyesters.

It is also used for manufacturing Alkyd Resins which is used in paints, as an intermediate in production of dyes and pigments, and in production of Unsaturated Polyester Resins (UPRs).

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