Fundamental Analysis

INDIA GLYCOLS LTD. 

Ticker : 500201  
BUY: ₹ 917.45
Target: ₹ 1050

India Glycols is engaged in the business of mono-ethylene glycol, ethylene oxide derivatives, ethyl alcohol (potable), and nutraceuticals. On a consolidated basis, the company recorded net sales and other operating income of Rs 1,760.13 crore, higher by 7.62 per cent as against Rs 1,641.02 crore reported in Q3FY21. Operating profit was recorded at Rs 61.53 crore in Q3FY22, a decline of 11.17 per cent as compared to an operating profit of Rs 69.27 crore in Q3FY21. Q3FY22 recorded a net profit of Rs 17.34 crore in comparison with a net profit of Rs 29.63 crore in Q3FY21, squeezing 41.48 per cent. The company delivered a resilient performance for the first nine months on the back of good bounce back in the bio-based specialities & performance chemicals (BSPC) segment along with good growth in potable spirits (PS) despite shutdown and unprecedented escalation in feedstock as well as energy prices. The margins are in line with the long-term average despite these significant headwinds. Hence, we recommend BUY.