IGIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | IGIL | Market Cap | 14,951 Cr. | Current Price | 346 ₹ | High / Low | 442 ₹ |
| Stock P/E | 27.3 | Book Value | 58.4 ₹ | Dividend Yield | 0.72 % | ROCE | 30.7 % |
| ROE | 23.2 % | Face Value | 2.00 ₹ | DMA 50 | 338 ₹ | DMA 200 | 346 ₹ |
| Chg in FII Hold | -1.01 % | Chg in DII Hold | 0.94 % | PAT Qtr | 132 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 50.7 | MACD | 6.62 | Volume | 3,10,719 | Avg Vol 1Wk | 3,06,171 |
| Low price | 287 ₹ | High price | 442 ₹ | PEG Ratio | 0.89 | Debt to equity | 0.01 |
| 52w Index | 37.9 % | Qtr Profit Var | 17.8 % | EPS | 12.7 ₹ | Industry PE | 18.9 |
Financials: India Glycols Ltd (IGIL) demonstrates strong fundamentals with ROCE at 30.7% and ROE at 23.2%. EPS of ₹12.7 supports profitability, while quarterly PAT of ₹132 Cr. shows stability compared to ₹139 Cr. in the previous quarter. Debt-to-equity ratio of 0.01 reflects a near debt-free balance sheet.
Valuation: P/E of 27.3 is above industry average (18.9), indicating premium valuation. PEG ratio of 0.89 suggests reasonable growth-adjusted pricing. Dividend yield of 0.72% provides modest income support.
Business Model: IGIL operates in specialty chemicals and industrial alcohol, with competitive advantage in diversified product lines and strong domestic demand.
Entry Zone: Attractive entry between ₹330–₹350, near DMA 50 (₹338) and DMA 200 (₹346). Long-term holding favorable due to strong fundamentals and low leverage.
Positive
- Strong ROCE (30.7%) and ROE (23.2%) highlight efficient capital use
- Debt-to-equity ratio of 0.01 ensures financial stability
- PEG ratio of 0.89 indicates fair growth potential
- Dividend yield of 0.72% adds investor appeal
Limitation
- P/E of 27.3 is higher than industry average (18.9), suggesting overvaluation
- EPS of ₹12.7 is modest compared to valuation levels
- RSI at 50.7 shows neutral momentum
- Slight decline in quarterly PAT (₹139 Cr. → ₹132 Cr.)
Company Negative News
- Marginal decline in quarterly profits
- FII holdings reduced (-1.01%), showing foreign investor caution
Company Positive News
- DII holdings increased (+0.94%), reflecting domestic confidence
- Stable PAT despite sector volatility
Industry
- Specialty chemicals sector benefits from strong demand and industrial growth
- Industry P/E at 18.9 highlights IGIL trading at a premium
Conclusion
IGIL presents strong fundamentals with high ROE/ROCE, low debt, and fair growth valuation. While trading at a premium compared to industry peers, its stability and sector demand make it attractive for long-term investors. Entry around ₹330–₹350 offers a balanced risk-reward opportunity.
Would you like me to extend this into a benchmarking module comparing IGIL against peers like GNFC, Balrampur Chini, and other specialty chemical/alcohol producers, so you can see relative valuation and efficiency overlays?