Fundamental

IOL CHEMICALS & PHARMACEUTICAL

Ticker : 542164
BUY: Rs. 213.30
Target: Rs. 240.00



IOL Chemicals and Pharmaceuticals is a leading organic chemicals manufacturer and supplier in India. The company manufactures active pharmaceutical ingredient, organic chemicals and intermediates. On the financial front, the company’s net sales went up by 46 per cent to Rs 422.29 crore in Q4FY19 as compared to Rs 287.52 crore posted in Q4FY18. The PBIDT for Q4FY19 was Rs 157.14 crore, posting a substantial increase of 386.35 per cent compared to PBIDT of Rs 32.31 crore for Q4FY18. The net profit rose by 784 per cent to Rs 101.65 crore in Q4FY19 from Rs 11.49 crore in Q4FY18.Recently, the company made pre-payment of the term loan of Rs 21.17 crore due to banks, in addition to regular repayment schedule. Thus, the company has made pre-payment of term loan of an aggregate amount of Rs 68.79 crore till date to reduce its debt. We recommend a BUY.