X

India Glycols Ltd Stock Analysis

Small Cap
Evaluated by 967 users | BSE: 500201 | NSE: INDIAGLYCO |
Chemicals
India Glycols (IGL), incorporated in 1983, is engaged in the business of manufacturing glycols, ethoxylates and PEGs, performance chemicals, glycol ether and acetates, guar gum and potable alcohol. Promoted by Vam Organics, the company was incorporated under the name as UP Glycols. Since 1989,...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.62%12.17%11.54%4.42%2.95%4.25%7.23%10.27%14.46%12.5%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,6332,6243,3342,8852,5572,3222,4733,0283,3563,470
Y-o-Y Gr. Rt.-60.7%27.1%-13.5%-11.4%-9.2%6.5%22.4%10.8%3.4%
Adjusted EPS (Rs.) 10.1763.0153.721.61-15.06-0.5414.8930.7654.750.61
Y-o-Y Gr. Rt.-519.6%-14.7%-97%-1035.4%NANA106.6%77.8%-7.5%
Book Value per Share (Rs.) 148.72172.43202.72162.7146.31257.98272.47303.2346.25373.31
Adjusted Net Profit 28.41761665-46.6-1.746.195.2169157
Net Op. Cash Flow (Rs. Cr.) -5-47.1769-138-1541,223302487148344
Debt to Cash Flow from Ops -299.7-42.32.13-14-13.860.923.231.576.272.64
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
India Glycols Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.7%6.3%11.9%3.4%
Adjusted EPS 19.5%NA50.4%-7.5%
Book Value per Share 10.820.611.17.8
Share Price 14.9% 41% -5.1% 83.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 7.0139.2129.950.88-9.71-0.265.5910.6616.814.04
Operating Profit Margin (%) 11.9216.75137.35.377.987.87.3813.4512.29
Net Profit Margin (%) 1.746.74.990.17-1.82-0.071.863.155.054.52
Debt to Equity 3.594.152.613.824.721.41.160.820.870.79
Working Capital Days 1391371301592001721311049092
Cash Conversion Cycle 6863373057386-15-32-20
Entity Percentage Holding
Promoters 61.01%
Institutions 1.56%
Non-Institutions 37.43%
Pledged *0.000.000.0083.5983.5983.5983.5983.5983.5983.59
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of India Glycols Ltd's performance infers:

India Glycols Ltd earnings have grown by 0%, whereas share price has appreciated 41% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of India Glycols Ltd share prices over the last 10 years. Here is what we found out:

India Glycols Ltd share price has appreciated 15.3% annually over the past ten years.

India Glycols (IGL), incorporated in 1983, is engaged in the business of manufacturing glycols, ethoxylates and PEGs, performance chemicals, glycol ether and acetates, guar gum and potable alcohol. Promoted by Vam Organics, the company was incorporated under the name as UP Glycols. Since 1989, IGL is the only company in the world that uses renewable agro source based on molasses to manufacture Ethylene Oxide (EO) / Mono Ethylene Glycol (MEG). The company’s in-house R&D facility

India Glycols (IGL), incorporated in 1983, is engaged in the business of manufacturing glycols, ethoxylates and PEGs, performance chemicals, glycol ether and acetates, guar gum and potable alcohol. Promoted by Vam Organics, the company was incorporated under the name as UP Glycols. Since 1989, IGL is the only company in the world that uses renewable agro source based on molasses to manufacture Ethylene Oxide (EO) / Mono Ethylene Glycol (MEG). The company’s in-house R&D facility focuses on developing new products and processes. In India, the company is the largest ethoxylate and glycol ether producer thus making it leader in ethylene oxide derivatives/surfactant business.

The company exports its products to countries like South East Asia, Middle East, Europe, Australia and USA. It was granted ‘One Star Export House’ status by the government of India.

IGL operates subsidiaries namely IGL Finance, IGLCHEM International Pte and Shakumbari Sugar and Allied Industries. The company has base of 1000 customers. Products manufactured by company find applications in area of textile, agrochemical, oil and gas, personal care, pharmaceuticals, brake fluids, detergent, emulsion polymerisation and paints, etc.

The company has formed various technical collaborations such as Scientific Design Company Inc, USA for glycols; Press industria AG, Italy for ethoxylates and PEGs; Sanyo Chemical Industries of Japan for performance chemicals; Sulzer Chemtech of Switzerland for glycol ethers and Alfa Laval, USA for extra neutral alcohol.

IGL owns an export oriented unit (EOU) that primarily produced 10,000 MTPA of guar products such as guar, treated and pulverised guar gum powder and derivatised guar.

It also operates 100% EOU under the name Ennature Bio-pharma Division. This unit is spread across in an area 47 acres land which leased from the Uttarakhand government. This unit will grow a spectrum of medicinal plants. It will also set up supercritical fluid extraction facility (SCFE) at Dehradun that will be used for extraction of dietary food supplements,  natural colours, health care, fruits and vegetables, herbal extracts, fruit flavours and fragrances and spice flavours and extracts.

The company has installed distillery effluent evaporators at Gorakhpur and the concentrated effluent is burnt in specially designed boilers; the calorific value of the concentrated, effluent generates super-heated steam which is. utilised in the turbo generator with capacity of 12.5 MW for power generation.

In FY 2007-08 the company acquired controlling stake in the Shakumbari Sugar & Allied Industries (SSAIL) that is engaged in business of manufacturing sugar. SSAIL’s manufacturing plant is located in Uttar Pradesh with a crushing capacity of 3200 tones per day (TCD) along with a modern distillery of 40 kl per day (KLPD), producing high quality rectified spirit, ethanol and country liquor and an internal bagasse-fired co-generation plant of 3 MW catering to the captive power needs of the sugar and distillery units.

Future Plans

India Glycols will focus on various areas in future such as developing cost-effective emulsifier for crop protection chemicals; development of eco-friendly surfactants to replace alkylphenol ethoxylates; development of green demulsifier for crude oil emulsion and setting up an application development laboratory equipped with all sophisticated instruments for various industries.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback