IOL Chemicals Company – Get Stocks , Equity & Market Share
Why IOL Chemicals Company is Good for Investment?
Do you think, you should buy IOL stocks or should invest for long term basic? So, let’s have a look on about IOL Chemicals company.
About IOL Chemicals Company;
IOL Chemicals company was established in 1986 in Punjab, India. IOLCP is India’s of the leading generic Pharmaceutical company. It is a significant player in the Organic Chemicals space. IOL company has organic chemicals capacity on Ethyl Acetate 87000 TPA and ISO Butyl Benzene (IBB) 1200 Metric Tone. It has global market share of 30% MCL Acetyle Chloride manufacturing across India as well as Global, which is used to manufacture raw material of I-Brufen.
When we talk about pharma sector, IOL Chemicals one of the world biggest backward integrated I-Brufen manufacturer company, with total capacity of 12000 TPA.
Brufen is world famous drug is pain killer API. Today, I Brufen has total demand globally of 35-36000 TPA. IOL Chemical supplies 12000 TPA to this share. IOL Chemicals also, have more IPA – such as Metformin Hydrochloride, Lamotrigine, Fenofibrate Clopidogrel Bi sulphate, distribution across the globe platform.
IOLCP has wide presence across various therapeutic categories like, Pain Management, Anti-diabetic, Anti hypertensive, Anticonvulsants, etc. Presently, 6 API are already commercialized and in the coming year, IOL chemical will commercialized 10 APIs are in the advance stage of development.
IOL Chemicals Financials Strength:
Equity: 57 Cr
Reserve: 600 Cr
Promoter stake is of 42% FII- Increased in March Quarter 1.29% and currently it is 2.61%.
Performance of the Company:
Performance is brilliant as compared to other;
In March 2017;
Turnover – 193 Cr
PAT clocked to 2 Cr
Since, every Quarter sales and profits has increased and in Dec 2019 sales 511 Cr and PAT increased to 98 Cr. Constant one side growth. In these years company has reduced debt and has repaid the debt. Last trans payment was March prepayment of loan of 225 Cr debt and become virtually debt free. If we talk about last 12-13 month company has paid 225 Cr debt prepaid. In last 3-4 years company has paid debt total 450 Cr. Now IOL company is Deby Free company.
Many of people has complaint that company doesn’t give Dividend after earning so much. In March company has given Historical interim dividend of 30%. Now, IOL company is in dividend list and Debt free. Now, IOL Checmicals is in good expansion mode and expansion money will not be bought from outside but expansion will be in internal movements. In last 2 years company has done expansion of more than 100 Cr through internal accruals.
Last year promoter has taken amount of 50 Cr in 205 Rs preferential allotment taken. Which increased confidence of company. Overall parameters and fundamentals that company is undervalued till now. After this big rally (from 95 to now 400) company is still available of PE of 6X. Company Return on Equity (ROE) – 69% which is biggest in pharma sector. ROC – 55%, only few companies with such ROC.
Future Planning of IOL Chemicals:
Brufen biggest manufacturer, making vast variety of API’s and as well new chemicals in coming time. Also, company has informed Sorbital 17 70 B will be manufactured 10 new API & Folic acid. In coming days we see that company is into multiple product production as well debt free structure and dividend payout company. Company will certainly get higher valuations in future. Slowly there’s a increase in number of foreign investment, that will gibe boost to retail investor. Now, we think that company is undervalued and this year company can clock 65EPS. For next year company has already set target of 25% growth.
China was the one which use to export 75-80% API, now after Covid19 issue we think India will get 20-25% market business taken out of China. Most beneficial will be India API segment, IOL chemical is a one of them.
IOL Checmial Stock Market Share Price:
Available at PE of 6X
Short term 420-425
Long term – 550 levels