Review

IOL CHEMICALS AND PHARMACEUTICALS 

Ticker : 524164 { FV: Rs. 10 { 52-Week H/L: Rs. 257.30/162.05 

We had previously recommended IOL Chemicals and Pharmaceuticals in volume 35, issue no. 39 (dated July 22, 2019), when the stock was trading at Rs 213.30. IOL Chemicals and Pharmaceuticals (IOLCP) is a leading organic chemicals manufacturer and supplier in India. The scrip was then recommended based on the company’s efforts to reduce its debt. On the standalone quarterly financial front, net sales increased by 6.89 per cent to Rs 511.25 crore in Q3FY20, from Rs 478.29 in Q3FY19. PBDT for Q3FY20 stood at Rs 159.70 crore, a growth of 29.30 per cent as compared to Rs 123.51 crore in Q3FY19. In Q3FY20, the net profit rose by 19.18 per cent to Rs 98.01 crore as compared to Rs 82.24 crore in Q3FY19. Since the company witnessed a positive growth momentum, we recommend to Book Profit at Rs 245.25 with a gain of 14.98 per cent as on February 18, 2020.