⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IGIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | IGIL | Market Cap | 14,695 Cr. | Current Price | 339 ₹ | High / Low | 442 ₹ |
| Stock P/E | 26.8 | Book Value | 58.4 ₹ | Dividend Yield | 0.74 % | ROCE | 30.7 % |
| ROE | 23.2 % | Face Value | 2.00 ₹ | DMA 50 | 325 ₹ | DMA 200 | 348 ₹ |
| Chg in FII Hold | -0.94 % | Chg in DII Hold | 0.29 % | PAT Qtr | 132 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 58.7 | MACD | -0.10 | Volume | 16,87,586 | Avg Vol 1Wk | 11,72,860 |
| Low price | 287 ₹ | High price | 442 ₹ | PEG Ratio | 0.87 | Debt to equity | 0.01 |
| 52w Index | 33.5 % | Qtr Profit Var | 17.8 % | EPS | 12.7 ₹ | Industry PE | 19.4 |
📊 Core Financials
- Revenue Growth: Stable with PAT ₹132 Cr vs ₹139 Cr
- Profit Margins: Strong with ROE at 23.2% and ROCE at 30.7%
- Debt Ratios: Very low (Debt-to-Equity 0.01), excellent financial stability
- Cash Flows: Dividend yield of 0.74% provides modest shareholder returns
- Return Metrics: Efficient capital utilization compared to peers
💹 Valuation Indicators
- P/E Ratio: 26.8 (slightly above industry average of 19.4, mildly overvalued)
- P/B Ratio: ~5.8 (Price ₹339 / Book Value ₹58.4)
- PEG Ratio: 0.87 (reasonable, suggests fair growth valuation)
- Intrinsic Value: Fairly valued with potential upside if earnings sustain
🏢 Business Model & Competitive Advantage
- Operates in specialty chemicals and industrial solutions
- Strong operational efficiency reflected in high ROCE
- Competitive advantage lies in niche product offerings and low debt structure
📈 Entry Zone Recommendation
- Current Price: ₹339
- Support Zone: ₹325 – ₹340 (near DMA 50, RSI at 58.7 indicates neutral momentum)
- Long-term Holding: Attractive given strong fundamentals, low debt, and consistent profitability
✅ Positive
- High ROCE and ROE indicate strong efficiency
- Low debt ensures financial resilience
- Dividend yield adds shareholder value
⚠️ Limitation
- P/E ratio above industry average suggests mild overvaluation
- P/B ratio relatively high compared to peers
- Quarterly PAT slightly declined (₹132 Cr vs ₹139 Cr)
📉 Company Negative News
- FII holdings decreased (-0.94%), showing reduced foreign investor confidence
- Technical indicators (MACD negative) reflect weak short-term momentum
📈 Company Positive News
- DII holdings increased (+0.29%), showing domestic support
- Quarterly profit variation of 17.8% YoY indicates growth stability
🌐 Industry
- Specialty chemicals industry remains strong with demand in industrial applications
- Industry P/E at 19.4 highlights IGIL trading at a premium
🔎 Conclusion
IGIL demonstrates strong fundamentals with high efficiency, low debt, and consistent profitability. While valuations are slightly stretched, the company’s business model and industry positioning provide long-term growth potential. Entry around ₹325–₹340 offers a balanced risk-reward profile, making it a solid candidate for long-term holding.