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

• Market Cap: ₹26.90B
• Dividend Yield: 0.89%
• Average Volume (3M): 113.78K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.69
• 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): 411.23
• Revenue Forecast (FY): ₹2.06T

• Rating: 60 Neutral
• Price Target: ₹103.00 ▲(14.33% Upside)

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

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Revenue Model

Diverse revenue streams and strategic partnerships enhance market reach and provide a stable income base, supporting long-term growth and resilience.

EPS Growth

Strong EPS growth indicates effective cost management and profitability, enhancing shareholder value and providing funds for reinvestment in the business.

Negative Factors

Revenue Growth Challenges

Struggles in revenue growth can hinder the company's ability to scale and compete, potentially impacting long-term profitability and market position.

Cash Flow Concerns

Reduced free cash flow limits the company's ability to invest in growth initiatives and may strain financial flexibility, impacting future expansion.

Operating Efficiency Pressure

Decreasing operating margins suggest inefficiencies, which can erode profitability and reduce competitiveness in the long term.

IOL Chemicals & Pharmaceuticals Ltd. Business Overview & Revenue Model

Company Description

IOL Chemicals & Pharmaceuticals Ltd. (IOLCP) is a prominent Indian company engaged in the manufacturing of specialty chemicals and pharmaceuticals. The company operates primarily in two sectors: the production of active pharmaceutical ingredients (APIs) and specialty chemicals. IOLCP's core products include a range of APIs used in various therapeutic areas, along with specialty chemical intermediates that cater to diverse industries such as textiles, agrochemicals, and personal care. With a strong focus on quality and innovation, IOLCP aims to serve both domestic and international markets.

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: 90.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 90.09 is below the 20-day moving average (MA) of 92.50, below the 50-day MA of 98.67, and above the 200-day MA of 86.16, indicating a neutral trend. The MACD of -1.71 indicates Negative momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 25.26 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	₹32.92B	24.08	―	0.08%	15.47%	-1.72%
TATVA	64 Neutral	₹35.66B	201.06	―	0.07%	16.88%	0.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IOLCP	60 Neutral	₹26.90B	23.22	―	0.89%	5.74%	16.06%
PRINCEPIPE	51 Neutral	₹30.46B	131.25	―	0.18%	-4.37%	-82.37%
FAIRCHEMOR	47 Neutral	₹8.41B	138.91	―	1.14%	-22.10%	-85.56%
TIRUMALCHM	41 Neutral	₹28.81B	―	―	0.42%	-11.11%	-340.74%