Fundamental Analysis of I G Petrochemicals Ltd

Share Price and Basic Stock Data

Last Updated: September 6, 2024, 11:44 pm

Market Cap	2,012 Cr.
Current Price	653
High / Low	727/402
Stock P/E	51.0
Book Value	402
Dividend Yield	1.15 %
ROCE	5.38 %
ROE	3.05 %
Face Value	10.0
PEG Ratio	1.31

Data Source: screener.in

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

Competitors of I G Petrochemicals Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Industry Average	0 Cr	0		0	0	0%	0%	0%	0

Quarterly Result

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	315	424	387	471	507	517	660	569	518	605	555	502	488
Expenses	218	280	304	374	395	404	540	484	469	541	496	476	494
Operating Profit	96	145	84	97	112	113	120	85	49	64	59	26	-6
OPM %	31%	34%	22%	21%	22%	22%	18%	15%	9%	10%	11%	5%	-1%
Other Income	1	2	2	3	3	2	4	6	6	6	7	7	7
Interest	5	1	5	2	3	4	4	5	9	7	6	7	8
Depreciation	8	10	11	11	11	12	12	12	12	12	12	13	12
Profit before tax	85	135	70	88	101	100	109	75	34	51	48	14	-20
Tax %	25%	25%	25%	25%	25%	26%	25%	26%	26%	25%	26%	28%	24%
Net Profit	63	100	52	66	75	74	81	55	25	38	36	10	-15
EPS in Rs	20.53	32.62	16.96	21.35	24.39	23.91	26.40	17.98	8.26	12.41	11.58	3.27	-4.95

Last Updated: August 11, 2024, 9:27 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: August 9, 2024, 6:45 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	886	970	1,204	1,187	953	1,037	1,144	1,304	1,059	1,124	1,883	2,352	2,180
Expenses	843	914	1,144	1,106	839	869	877	1,078	987	825	1,476	2,034	1,983
Operating Profit	43	57	61	80	113	168	267	226	72	299	407	318	198
OPM %	5%	6%	5%	7%	12%	16%	23%	17%	7%	27%	22%	14%	9%
Other Income	3	-22	-8	-14	4	3	4	-2	6	4	9	22	27
Interest	15	17	30	38	23	18	15	11	16	15	13	24	28
Depreciation	15	14	18	16	18	21	26	26	30	34	44	47	49
Profit before tax	17	4	4	11	77	132	231	186	32	254	359	269	147
Tax %	20%	21%	20%	21%	21%	23%	37%	37%	34%	25%	26%	25%
Net Profit	13	3	3	9	60	102	147	116	21	190	267	200	109
EPS in Rs	4.32	1.00	1.02	2.89	19.60	33.10	47.59	37.82	6.83	61.54	86.61	65.05	35.52
Dividend Payout %	0%	0%	0%	35%	10%	9%	8%	11%	29%	12%	12%	15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2012-2013	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
YoY Net Profit Growth (%)	-76.92%	0.00%	200.00%	566.67%	70.00%	44.12%	-21.09%	-81.90%	804.76%	40.53%	-25.09%
Change in YoY Net Profit Growth (%)	0.00%	76.92%	200.00%	366.67%	-496.67%	-25.88%	-65.21%	-60.81%	886.66%	-764.24%	-65.62%

Growth

Compounded Sales Growth
10 Years:	6%
5 Years:	10%
3 Years:	23%
TTM:	-5%

Compounded Profit Growth
10 Years:	6%
5 Years:	-21%
3 Years:	-42%
TTM:	-74%

Stock Price CAGR
10 Years:	30%
5 Years:	34%
3 Years:	7%
1 Year:	41%

Return on Equity
10 Years:	18%
5 Years:	15%
3 Years:	15%
Last Year:	3%

Last Updated: August 24, 2024, 5:54 pm

Balance Sheet

Last Updated: August 9, 2024, 6:45 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Equity Capital	31	31	31	31	31	31	31	31	31	31	31	31
Reserves	227	226	208	261	362	497	598	603	787	1,030	1,200	1,209
Borrowings	172	209	153	116	82	54	161	197	129	137	217	337
Other Liabilities	192	298	212	171	184	245	323	299	337	416	501	517
Total Liabilities	622	764	604	579	659	827	1,113	1,130	1,284	1,614	1,949	2,094
Fixed Assets	172	376	327	322	324	403	389	471	702	736	717	1,030
CWIP	172	1	1	4	11	26	216	267	41	18	232	3
Investments	0	0	0	0	19	90	113	55	58	123	269	252
Other Assets	279	387	276	252	305	308	395	336	483	737	731	809
Total Assets	622	764	604	579	659	827	1,113	1,130	1,284	1,614	1,949	2,094

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	29	28	74	70	95	198	147	84	145	109	234	37
Cash from Investing Activity	-134	-36	-24	-6	-43	-129	-234	-99	-52	-98	-249	-115
Cash from Financing Activity	109	1	-61	-64	-50	-67	58	35	-80	-19	21	48
Net Cash Flow	5	-6	-10	-1	2	2	-30	20	12	-8	5	-30

Free Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Free Cash Flow	43.00	-115.00	-148.00	-73.00	-3.00	86.00	213.00	65.00	-125.00	170.00	270.00	101.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	47	53	45	42	53	44	51	49	65	67	50	59
Inventory Days	36	49	32	45	47	47	52	42	81	45	34	42
Days Payable	81	100	72	77	83	75	92	89	124	87	76	79
Cash Conversion Cycle	2	2	5	10	17	16	11	3	21	25	8	21
Working Capital Days	13	9	1	8	21	19	20	3	20	34	16	27
ROCE %	14%	12%	16%	25%	34%	46%	30%	6%	30%	35%	22%	5%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	68.74%	68.74%	68.74%	68.74%	68.74%	68.73%	68.73%	68.73%	68.73%	68.73%	68.74%	68.74%
FIIs	2.37%	2.98%	3.02%	3.22%	3.44%	3.45%	3.56%	3.71%	3.81%	3.74%	3.42%	3.00%
DIIs	2.64%	1.98%	1.87%	1.86%	1.97%	2.05%	2.03%	1.95%	1.69%	1.80%	1.79%	1.79%
Public	26.25%	26.30%	26.38%	26.18%	25.86%	25.75%	25.69%	25.61%	25.78%	25.74%	26.05%	26.47%
No. of Shareholders	39,059	37,045	38,623	36,765	36,183	38,026	37,010	36,501	36,625	37,086	37,398	37,726

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Aditya Birla Sun Life Pure Value Fund	518,879	0.45	23.16	518,879	2024-09-05	0%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	12.83	64.94	85.88	61.08	6.78
Diluted EPS (Rs.)	12.83	64.94	85.88	61.08	6.78
Cash EPS (Rs.)	29.75	80.34	100.28	72.15	16.49
Book Value[Excl.RevalReserv]/Share (Rs.)	404.87	400.96	344.86	266.90	205.44
Book Value[Incl.RevalReserv]/Share (Rs.)	404.87	400.96	344.86	266.90	205.44
Revenue From Operations / Share (Rs.)	681.56	763.79	611.33	364.83	343.72
PBDIT / Share (Rs.)	44.13	110.28	134.27	98.03	25.35
PBIT / Share (Rs.)	27.21	94.88	119.87	86.96	15.64
PBT / Share (Rs.)	17.34	87.12	115.69	82.03	10.36
Net Profit / Share (Rs.)	12.83	64.94	85.88	61.08	6.78
NP After MI And SOA / Share (Rs.)	12.83	64.94	85.88	61.08	6.78
PBDIT Margin (%)	6.47	14.43	21.96	26.87	7.37
PBIT Margin (%)	3.99	12.42	19.60	23.83	4.54
PBT Margin (%)	2.54	11.40	18.92	22.48	3.01
Net Profit Margin (%)	1.88	8.50	14.04	16.74	1.97
NP After MI And SOA Margin (%)	1.88	8.50	14.04	16.74	1.97
Return on Networth / Equity (%)	3.16	16.19	24.90	22.88	3.29
Return on Capital Employeed (%)	5.31	19.50	29.32	26.92	5.55
Return On Assets (%)	1.85	10.04	16.01	14.20	1.79
Long Term Debt / Equity (X)	0.18	0.13	0.10	0.10	0.23
Total Debt / Equity (X)	0.29	0.20	0.14	0.15	0.29
Asset Turnover Ratio (%)	1.02	1.31	1.28	0.91	0.92
Current Ratio (X)	1.51	1.64	1.81	1.33	1.11
Quick Ratio (X)	1.15	1.31	1.43	0.89	0.78
Inventory Turnover Ratio (X)	9.59	11.28	8.34	5.54	7.26
Dividend Payout Ratio (NP) (%)	0.00	15.39	8.73	3.27	58.99
Dividend Payout Ratio (CP) (%)	0.00	12.44	7.47	2.77	24.25
Earning Retention Ratio (%)	0.00	84.61	91.27	96.73	41.01
Cash Earning Retention Ratio (%)	0.00	87.56	92.53	97.23	75.75
Interest Coverage Ratio (X)	4.47	14.20	32.10	20.74	4.89
Interest Coverage Ratio (Post Tax) (X)	2.30	9.36	21.53	13.96	2.32
Enterprise Value (Cr.)	1505.60	1323.01	2186.97	1328.04	422.81
EV / Net Operating Revenue (X)	0.71	0.56	1.16	1.18	0.39
EV / EBITDA (X)	11.08	3.90	5.29	4.40	5.42
MarketCap / Net Operating Revenue (X)	0.63	0.53	1.15	1.14	0.26
Retention Ratios (%)	0.00	84.60	91.26	96.72	41.00
Price / BV (X)	1.06	1.03	2.03	1.55	0.45
Price / Net Operating Revenue (X)	0.63	0.53	1.15	1.14	0.26
EarningsYield	0.02	0.15	0.12	0.14	0.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹632.50

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 3.14% compared to the current price ₹653.00

Intrinsic Value: 879.57

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 34.70% compared to the current price ₹653.00

Last 5 Year EPS CAGR: 39.06%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 22.92%, which is a positive sign. The stock has a low average Working Capital Days of 15.92, which is a positive sign. The company has higher reserves (600.67 cr) compared to borrowings (163.67 cr), indicating strong financial stability. The company has shown consistent growth in sales (217.00 cr) and profit (132.54 cr) over the years.	The stock has a high average Cash Conversion Cycle of 11.75, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in I G Petrochemicals Ltd:
1. Net Profit Margin: 1.88%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 5.31% (Industry Average ROCE: 5.38%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 3.16% (Industry Average ROE: 3.05%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 2.3
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 1.15
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 51 (Industry average Stock P/E: 51)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.29
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

I G Petrochemicals Ltd. is a Public Limited Listed company incorporated on 18/10/1988 and has its registered office in the State of Goa, India. Company’s Corporate Identification Number(CIN) is L51496GA1988PLC000915 and registration number is 000915. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 1882.77 Cr. and Equity Capital is Rs. 30.80 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Chemicals - Organic - Maleic Anhydride	T-10, 3rd Floor, Jairam Complex, Panaji Goa 403001	igpl@igpetro.com http://www.igpetro.com

Management
Name	Position Held
Mr. M M Dhanuka	Non Executive Chairman
Mr. Nikunj Dhanuka	Managing Director & CEO
Mr. Sagar Jadhav	Executive Director
Mr. Rajesh Muni	Independent Director
Dr. A K A Rathi	Independent Director
Dr. Vaijayanti Pandit	Independent Director

FAQ

What is the latest fair value of I G Petrochemicals Ltd?

The latest fair value of I G Petrochemicals Ltd is ₹632.50.

What is the Market Cap of I G Petrochemicals Ltd?

The Market Cap of I G Petrochemicals Ltd is 2,012 Cr..

What is the current Stock Price of I G Petrochemicals Ltd as on 08 September 2024?

The current stock price of I G Petrochemicals Ltd as on 08 September 2024 is 653.

What is the High / Low of I G Petrochemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of I G Petrochemicals Ltd stocks is 727/402.

What is the Stock P/E of I G Petrochemicals Ltd?

The Stock P/E of I G Petrochemicals Ltd is 51.0.

What is the Book Value of I G Petrochemicals Ltd?

The Book Value of I G Petrochemicals Ltd is 402.

What is the Dividend Yield of I G Petrochemicals Ltd?

The Dividend Yield of I G Petrochemicals Ltd is 1.15 %.

What is the ROCE of I G Petrochemicals Ltd?

The ROCE of I G Petrochemicals Ltd is 5.38 %.

What is the ROE of I G Petrochemicals Ltd?

The ROE of I G Petrochemicals Ltd is 3.05 %.

What is the Face Value of I G Petrochemicals Ltd?

The Face Value of I G Petrochemicals Ltd is 10.0.