Reviews

IOL CHEMICALS AND PHARMACEUTICALS LTD. 

Ticker : 524164
FV: Rs10
52-Week H/L: Rs234.90/108 

We had recommended IOL Chemicals and Pharmaceuticals in volume no. 35, issue no. 39 (dated July 22, 2019), when the scrip was trading at Rs. 213.30. The company is a leading organic chemicals manufacturer and supplier in India. It manufactures active pharmaceutical ingredients, organic chemicals and intermediates and also manufactures and supplies industrial chemicals and bulk drugs for use in various pharmaceutical applications. On the financial front, the company’s net income went up by 36 per cent to Rs 496 crore in Q1FY20 as compared to Rs 365 crore posted in Q1FY29. The EBIDTA for Q1FY20 was Rs 148 crore, posting a substantial increase of 244 per cent as compared to EBIDTA of Rs 43 crore for Q1FY19. The net profit rose by 507 per cent to Rs 85 crore in Q1FY20 from Rs 14 crore in Q1FY19. The company had recently announced pre-payment of a long-term loan, thus reducing the company’s debt. Based on our analysis, we recommend a HOLD.