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

• Market Cap: ₹21.72B
• Dividend Yield: 0.97%
• Average Volume (3M): 113.78K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.93
• Revenue Growth: 5.74%
• EPS Growth: 16.06%
• Country: IN
• Employees: 2,777
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.00
• Shares Outstanding: 293,527,500
• 10 Day Avg. Volume: 248,884
• 30 Day Avg. Volume: 113,785
• PEG Ratio: -3.72
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹78.00 ▼(-7.24% Downside)

The overall stock score of 60 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, and the valuation indicates moderate pricing with limited dividend income potential. The absence of recent earnings call data or notable corporate events leaves these areas unassessed.

Positive Factors

Balance sheet strength

A robust balance sheet and low leverage provide durable financial flexibility, allowing the company to fund capital expenditure, absorb industry cyclicality, and pursue strategic investments without heavy reliance on external financing. This supports long-term resilience and lower refinancing risk.

Niche API market position

A leading position in ibuprofen and related intermediates represents a durable competitive niche. Specialized manufacturing, regulatory know-how, and established B2B customer relationships raise entry barriers, support export revenues, and help sustain margins versus pure commodity players over a multi‑quarter horizon.

Margin and EPS resilience

Stable gross and net margins alongside material EPS growth suggest the company can convert sales into earnings reliably. This consistency supports internal funding for maintenance and targeted expansion, and indicates operational competence that can sustain profitability through medium-term industry cycles.

Negative Factors

Declining free cash flow

A falling free cash flow trend reduces the company’s ability to self‑fund capex, repay debt, or return capital to shareholders. Over months, weaker FCF can force tradeoffs between growth projects and working capital, raising financing needs and constraining strategic flexibility.

Revenue and margin pressure

A recent top-line decline coupled with shrinking operating margins indicates structural pressure on demand or pricing and rising cost intensity. Persisting revenue contraction and margin erosion impede reinvestment capacity, reduce scale economics, and can depress long‑term return on capital.

Commodity exposure and input sensitivity

Significant exposure to commodity-like chemicals and a mixed product portfolio makes earnings and cash flow vulnerable to raw material and energy price swings. Structural input-cost sensitivity and cyclical end‑markets raise volatility in margins and complicate medium‑term planning.

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

IOL Chemicals & Pharmaceuticals Ltd. generates revenue primarily through the sale of its active pharmaceutical ingredients (APIs) and specialty chemicals. The company’s revenue model is based on the manufacturing and distribution of high-quality chemicals and pharmaceuticals to clients in various sectors. Key revenue streams include direct sales to pharmaceutical companies, contracts for bulk supply of APIs, and the provision of specialty chemicals to industrial clients. Additionally, IOLCP benefits from strategic partnerships with international firms, which enhance its market reach and enable it to tap into new markets, contributing significantly to its earnings. The company also invests in research and development to innovate and expand its product portfolio, further driving 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: 84.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 84.09 is above the 20-day moving average (MA) of 74.92, above the 50-day MA of 80.88, and below the 200-day MA of 89.26, indicating a bearish trend. The MACD of -2.89 indicates Negative momentum. The RSI at 44.08 is Neutral, neither overbought nor oversold. The STOCH value of 68.36 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	₹31.23B	22.68	―	0.09%	15.47%	-1.72%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IOLCP	60 Neutral	₹21.72B	18.75	―	0.97%	5.74%	16.06%
TATVA	53 Neutral	₹27.01B	82.44	―	0.07%	16.88%	0.69%
PRINCEPIPE	51 Neutral	₹26.49B	114.14	―	0.20%	-4.37%	-82.37%
FAIRCHEMOR	47 Neutral	₹8.45B	139.43	―	1.07%	-22.10%	-85.56%
TIRUMALCHM	41 Neutral	₹22.61B	-13.23	―	0.43%	-11.11%	-340.74%