IGIL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: India Glycols Ltd. (IGIL)

Investment Rating: 4.1

⚙️ Fundamental Deep Dive

ROE: 54.4% and ROCE: 68.0% — exceptionally strong capital efficiency; rare in chemical manufacturing.

EPS: ₹11.6 and P/E: 35.9 — pricing is on the richer side relative to the sector; premium likely for margin strength and niche product mix.

Debt-to-Equity: 0.11 — comfortably low leverage; healthy financial posture.

Dividend Yield: 0.60% — modest passive income; not a primary dividend play.

PEG Ratio: Missing — makes growth valuation unclear; suggests caution when forecasting long-term upside.

Quarterly PAT Trend: Slight dip from ₹141 Cr to ₹127 Cr — watch for consistency.

📌 High return metrics offset valuation concerns; overall quality business with margin leadership. Slight earnings dip is noteworthy but not alarming.

📉 Technical Snapshot

RSI: 60.6 — nearing overbought zone; momentum strong but could be peaking.

MACD: +7.71 — bullish; confirms positive short-term sentiment.

DMA Levels: Currently near 50 DMA (₹386), and slightly below 200 DMA (₹413) — in consolidation zone.

Volume Well Below Average — low interest may signal cautious sentiment or illiquidity at current levels.

🎯 Ideal Entry Price Zone: ₹370 – ₹400 This zone offers better valuation comfort and aligns with technical support near 50 DMA and prior base levels.

🧭 Hold / Exit Strategy

✅ Hold Strategy

Holding Period: 2–4 years

Continue holding if

ROCE remains above 50%

EPS trends toward ₹15+

PAT growth stabilizes above ₹120 Cr quarterly

PEG Ratio improves with renewed earnings visibility

Institutional interest resumes (look for reversal in DII holding)

🚪 Exit Strategy

Partial Exit: ₹600+ — consider booking profits if price rallies on momentum without bottom-line growth revival.

Full Exit If

ROE or ROCE deteriorates below 30%

EPS stagnates under ₹12 with margin compression

Volume dries up further and RSI exceeds 70 with no earnings catalyst

India Glycols stands out for operational strength, but valuation comfort hinges on sustainable earnings and institutional conviction. Want to layer this with ESG metrics or compare it against peers like Deepak Nitrite or Aarti Industries? I’d be happy to sketch out a comp sheet. 🧪📈

Edit in a page