IG Petrochemicals Ltd. (IGPL) AI Stock Analysis

• Market Cap: ₹12.62B
• Dividend Yield: 2.63%
• Average Volume (3M): 1.40K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 1.04
• Revenue Growth: -10.71%
• EPS Growth: -40.89%
• Country: IN
• Employees: 517
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.65
• Shares Outstanding: 30,794,850
• 10 Day Avg. Volume: 1,033
• 30 Day Avg. Volume: 1,400
• PEG Ratio: 0.07
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 10.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹401.00 ▲(3.46% Upside)

The overall stock score of IG Petrochemicals Ltd. is driven primarily by its strong financial performance, particularly in profit margins and equity management. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The dividend yield offers some compensation, but the lack of earnings call data and corporate events limits further insights.

Positive Factors

Profit Margins

Improved profit margins indicate enhanced operational efficiency, which can lead to sustained profitability and competitive advantage.

Balance Sheet Health

A strong balance sheet with prudent leverage enhances financial stability and provides flexibility for future investments.

Cash Flow Improvement

Positive free cash flow indicates better cash management, supporting long-term sustainability and potential for reinvestment.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can signal challenges in market expansion or competitive pressures, potentially impacting future earnings.

EPS Growth Decline

A significant drop in EPS growth can affect investor confidence and may indicate underlying operational or market challenges.

Operating Cash Flow Variability

Variability in operating cash flow can indicate inconsistent cash conversion, affecting the company's ability to fund operations reliably.

IG Petrochemicals Ltd. Business Overview & Revenue Model

Company Description

IG Petrochemicals Ltd. (IGPL) is a leading manufacturer and supplier of petrochemical products in India, primarily focused on the production of phthalic anhydride and its derivatives. The company operates within the chemical manufacturing sector, serving various industries including plastics, paints, and textiles. IGPL's core products include phthalic anhydride, which is used as a key intermediate in the production of plastics, resins, and other chemical compounds, positioning the company as a crucial player in the petrochemical supply chain.

How the Company Makes Money

IG Petrochemicals Ltd. generates revenue primarily through the production and sale of phthalic anhydride and its derivatives. The company has established a robust revenue model based on the demand for its products across various industries, including construction, automotive, and consumer goods. Key revenue streams include direct sales to manufacturers and distributors, as well as long-term supply contracts with major clients. Additionally, IGPL benefits from strategic partnerships and collaborations with other firms in the petrochemical sector, enhancing its market reach and operational efficiency. Factors contributing to its earnings include fluctuating raw material prices, global demand for petrochemical products, and the company's ability to innovate and optimize production processes.

IG Petrochemicals Ltd. Financial Statement Overview

Summary

IG Petrochemicals Ltd. demonstrates strong financial performance with robust profit margins and solid equity management. Revenue growth has been consistent, although recent figures show a slight decline. The company maintains a strong position in the specialty chemicals industry, with commendable operational efficiency. However, cash flow metrics show some variability, indicating a need for improved cash management.

Income Statement

IG Petrochemicals Ltd. shows strong income statement performance with significant improvements in profit margins over recent years. The gross profit margin and net profit margin have notably increased, reflecting enhanced operational efficiency. Revenue growth has been consistent, though the latest figures show a slight decline from the peak. The EBIT and EBITDA margins are robust, signaling healthy earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet of IG Petrochemicals Ltd. indicates solid financial health, characterized by a high equity ratio suggesting prudent leverage usage and strong shareholder equity backing. The debt-to-equity ratio remains manageable, with recent trends showing a reduction in total debt levels. Return on equity has been fluctuating but remains positive, indicating adequate returns on shareholders' investments.

Cash Flow

Cash flow analysis reveals a mixed scenario for IG Petrochemicals Ltd. The company has shown improvement in free cash flow, turning from negative to positive in recent years, indicating better cash management. However, the operating cash flow to net income ratio suggests variability in cash conversion. The company needs to maintain consistent free cash flow generation to ensure long-term sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.91B	22.06B	20.94B	23.52B	18.83B	11.24B
Gross Profit	5.17B	5.19B	1.33B	5.52B	6.28B	3.15B
EBITDA	1.83B	2.19B	1.36B	3.40B	4.14B	2.97B
Net Income	606.85M	1.09B	395.13M	2.00B	2.65B	1.88B
Balance Sheet
Total Assets	0.00	22.11B	21.35B	19.92B	16.51B	13.24B
Cash, Cash Equivalents and Short-Term Investments	2.14B	2.67B	2.31B	2.60B	1.75B	668.77M
Total Debt	0.00	2.69B	3.68B	2.54B	1.73B	1.65B
Total Liabilities	-13.39B	8.72B	8.88B	7.57B	5.89B	5.02B
Stockholders Equity	13.39B	13.39B	12.47B	12.35B	10.62B	8.22B
Cash Flow
Free Cash Flow	0.00	1.24B	-1.37B	-73.45M	94.15M	1.13B
Operating Cash Flow	0.00	2.61B	371.93M	2.33B	1.09B	1.83B
Investing Cash Flow	0.00	-919.97M	-1.15B	-2.55B	-1.06B	-724.94M
Financing Cash Flow	0.00	-1.38B	479.26M	206.14M	-187.97M	-803.46M

IG Petrochemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 387.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IGPL, the sentiment is Negative. The current price of 387.6 is below the 20-day moving average (MA) of 392.03, below the 50-day MA of 411.02, and below the 200-day MA of 435.82, indicating a bearish trend. The MACD of -10.48 indicates Positive momentum. The RSI at 33.21 is Neutral, neither overbought nor oversold. The STOCH value of 35.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IGPL.

IG Petrochemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹12.74B	19.07	―	0.50%	28.67%	50.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KOTHARIPET	60 Neutral	₹8.57B	13.38	―	0.77%	-4.92%	1.29%
IGPL	59 Neutral	₹12.62B	38.83	―	2.63%	-10.71%	-40.89%
MANALIPETC	49 Neutral	₹11.34B	23.35	―	0.77%	-2.41%	178.19%
FAIRCHEMOR	47 Neutral	₹8.41B	138.91	―	1.15%	-22.10%	-85.56%
TIRUMALCHM	41 Neutral	₹28.81B	―	―	0.42%	-11.11%	-340.74%