IOL Chemicals & Pharmaceuticals Ltd. (IOLCP) AI Stock Analysis

• Market Cap: ₹28.62B
• Dividend Yield: 0.82%
• Average Volume (3M): 963.58K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 1.70
• Revenue Growth: 2.73%
• EPS Growth: -11.40%
• Country: IN
• Employees: 2,777
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.20
• Shares Outstanding: 293,527,500
• 10 Day Avg. Volume: 105,438
• 30 Day Avg. Volume: 963,581
• PEG Ratio: -1.09
• Price to Book (P/B): 5.55
• Price to Sales (P/S): 4.53
• P/FCF Ratio: -268.11
• 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: ₹103.00
• Price Target Upside: 5.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ₹103.00 ▲(5.64% Upside)

The overall stock score of 56 reflects a stable financial position with a strong balance sheet but challenges in revenue growth and cash flow optimization. Technical indicators suggest a bearish trend with weak momentum, while the valuation indicates potential overvaluation. The absence of earnings call and corporate events data limits further insights.

IOL Chemicals & Pharmaceuticals Ltd. Business Overview & Revenue Model

Company Description

IOL Chemicals and Pharmaceuticals Limited manufactures and sells pharmaceutical and chemical products in India and internationally. The company offers active pharmaceutical ingredients (API), such as ibuprofen, ibuprofen lysinate, ibuprofen sodium, and dex- ibuprofen; and other APIs, including metformin hydrochloride, clopidogrel bisulphate, pantoprazole sodium, ursodeoxycholic acid, losartan potassium, gabapentin, levetiracetam, lamotrigine, and fenofibrate. Its products are used for treatments, which include anti-inflammatory, analgesic and antipyretic, anti-diabetic, anti- platelet, anti-cholesterol, anti- convulsant, anti-cholelithic, as well as proton pump inhibitor. The company also provides specialty industrial chemicals comprising ethyl acetate, iso butyl benzene, acetyl chloride, and mono chloro acetic acid for use in food processing, flexible packaging, pharmaceuticals, textiles, ink, paint, pesticides, and chemical intermediates industries. IOL Chemicals and Pharmaceuticals Limited was incorporated in 1986 and is headquartered in Ludhiana, India.

How the Company Makes Money

IOLCP generates revenue through the production and sale of its APIs and specialty chemicals. The company primarily earns money by supplying these products to pharmaceutical companies and manufacturers that require high-quality raw materials for drug production and other applications. Key revenue streams include the sale of Ibuprofen API, which is one of the company's flagship products, and other industrial chemicals that cater to different sectors. Additionally, IOLCP engages in strategic partnerships and collaborations to enhance its product offerings and market reach, contributing to its financial performance. The company's focus on maintaining cost-effective manufacturing processes and expanding its product portfolio plays a significant role in sustaining its revenue growth.

IOL Chemicals & Pharmaceuticals Ltd. Financial Statement Overview

Summary

IOL Chemicals & Pharmaceuticals Ltd. presents a stable financial position with a robust balance sheet and prudent leverage. However, challenges are evident in maintaining revenue growth and optimizing cash flow. Continued focus on improving profitability and cash management is essential to support long-term growth.

Income Statement

The company shows modest profitability with a consistent gross profit margin and net profit margin over the years. However, there is a recent decline in revenue, reflecting a potential challenge in sustaining growth. The EBIT and EBITDA margins have also decreased, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet is strong with a healthy equity ratio and low leverage, indicating financial stability. The company's debt-to-equity ratio is favorable, reflecting prudent financial management. However, the return on equity has decreased, suggesting a need for improved profitability to enhance shareholder returns.

Cash Flow

The cash flow analysis indicates a decline in free cash flow, which may affect future investment capabilities. The operating cash flow is positive, but the free cash flow to net income ratio is concerning, suggesting potential inefficiencies in cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.29B	20.68B	21.19B	22.02B	21.84B	19.46B
Gross Profit	7.09B	6.54B	2.70B	6.41B	5.72B	8.22B
EBITDA	2.36B	2.25B	2.61B	2.46B	2.71B	6.11B
Net Income	1.05B	1.01B	1.34B	1.39B	1.68B	4.45B
Balance Sheet
Total Assets	0.00	23.82B	22.44B	20.22B	19.62B	16.10B
Cash, Cash Equivalents and Short-Term Investments	2.09B	2.09B	1.43B	186.40M	1.20B	3.37B
Total Debt	0.00	1.17B	327.60M	798.10M	439.50M	27.30M
Total Liabilities	-16.88B	6.94B	6.33B	5.14B	5.70B	3.50B
Stockholders Equity	16.88B	16.88B	16.12B	15.08B	13.92B	12.60B
Cash Flow
Free Cash Flow	0.00	-349.30M	159.10M	-895.50M	-602.40M	2.72B
Operating Cash Flow	0.00	1.79B	2.90B	1.22B	930.50M	3.80B
Investing Cash Flow	0.00	-1.54B	-1.91B	-1.20B	-1.21B	-3.17B
Financing Cash Flow	0.00	460.40M	-925.00M	-41.10M	-16.40M	-582.80M

IOL Chemicals & Pharmaceuticals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IOLCP, the sentiment is Negative. The current price of 97.5 is below the 20-day moving average (MA) of 104.81, below the 50-day MA of 102.51, and above the 200-day MA of 84.03, indicating a neutral trend. The MACD of -2.31 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 22.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IOLCP.

IOL Chemicals & Pharmaceuticals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROSSARI	70 Outperform	₹37.14B	27.18	―	0.07%	15.47%	-1.72%
TATVA	64 Neutral	₹31.07B	434.25	―	0.08%	2.47%	-72.80%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PRINCEPIPE	58 Neutral	₹35.84B	153.92	―	0.15%	-4.57%	-87.59%
IOLCP	56 Neutral	₹28.62B	27.25	―	0.82%	2.73%	-11.40%
FAIRCHEMOR	54 Neutral	₹10.04B	107.98	―	0.98%	-19.46%	-80.73%
TIRUMALCHM	47 Neutral	₹28.26B	―	―	0.36%	-8.05%	-150.62%