IOL Chemicals And Pharmaceuticals Limited

IOL Chemicals And Pharmaceuticals Limited (CMP 82.30)

COMPANY OVERVIEW :-

Company was established in 1986, IOLCP is India's one of the leading generic pharmaceutical company, and is significant player in the Organic chemicals space. IOLCP has wide presence across various therapeutic categories like, Pain Management, Anti-diabetic, Anti-hypertensive, Anti Convulsants, etc.  IOLCP is the second largest producer of Ibuprofen in India and fifth largest in the world. Company is engaged in pharma and speciality chemical business,  It is one of the largest producer of ethyle Acetate (87,000 TPA) and ISO Butyl Benzene (IBB) in India with over 30% of the global market share and a major player in Ibuprofen. It has forward-integrated this vertical to the pharmaceutical segment with end products such as  ethyle Acetate, Acytile chloride use in as key raw material for ibruprofen.  THIS IS THE ONLY COMPANY IN WORLD HAVING BACKWARD INTEGRATION AND POSSESS 18% MARKET SHARE OF BRUFEN IN WORLD. Company has entered into lifestyle drugs business for pain management, anti-depressant, anti-diabetic, anti-platelet and anti-convulsion. As overall pharma sector is coming out from long correction and consolidation phase, investment in this stock may and can proves to be highly rewarding short, medium to long term outlook looks superb. It has recently received EUGMP Certification from National Institute of Pharmacy and Nutrition, Hungary, for its product. This will facilitate company to expand it's product portfolio in the European Market. INVESTORS PRESENTATION :-  CLICK HERE :- http://www.iolcp.com/corporate-presentation.pdf ·       Key Business segments   Speciality Chemicals : Pharmaceuticals : 💢 FUNDAMENTALS :- Stock Info Market Cap 462.57 P/E 46.50 52 W High/Low 102.90/46 Face Value 10 EPS 1.77 Book Value 33.69 Price/Book 2.44 Industry PE 29.8 Share holding PAttern Promotors 41.19% FII …. MF …. Public/NII 58.73% TOTAL 100% 💢 FINANCIALS  :- ANNUAL RESULT :-  ·         NET PROFIT INCREASING CONTINUOUSLY FROM 2015 TO 2017. COMPANY POSED TURNAROUND RESULT IN FY17. IN FY18 WE EXPECT 50% JUMP IN PAT. ·         EXPECTED SAME RETURN IN NEAR FUTURE YEARS ·         EPS CONTINUE INCREASING YOY FROM 2015 TO 2017 FROM -14.0 TO NOW 0.75. QUARTERLYRESULT :-          NET PROFIT INCREASING CONTINUOUSLY FROM JUNE 2016 TO SEPT 2017.  ·         EXPECTED SAME RETURN IN NEAR FUTURE YEARS ·         EPS CONTINUE INCREASING YOY FROM JUNE 2016 TO SEPT 2017 FROM 0.13 TO NOW 0.79. CONSISTENT FIFTH QUARTER NET PAT INCREASING AND CONSISTENT 9 QUARTER GROWTH IN EBITDA..           ·         COMPANY CONTINUE REDUCING DEBT.           DEBT TO EQUITY RATIO DECREASING FROM 2.44 IN 2016 TO NOW 2.36 IN 2017. ·         COMPANY ASSET IN INCREASING YOY FROM 437.44 Cr. 2009 TO NOW IN 881 Cr. IN 2017          In January-17 Credit Analysis & Research Ltd (CARE) has revised the credit rating for long term bank facilities to “CARE BB; Stable (Double B, Outlook stable) from CARE BB- (Double B minus) and reaffirmed the credit rating for short term bank facilities to “CARE A4” (A four) COMPANY ASSET IN INCREASING YOY FROM 437.44 Cr. 2009 TO NOW IN 881 Cr. IN 2017           EXPANSION PLAN :- Company has announce some expansion plans. The Company is planning to invest about Rs.200 crore over the next couple of years in expanding its existing manufacturing capacities including its flagship product, ibuprofen from 7200 TPA to 12000 TPA, keeping in view the recent approvals from US and Europe. The company will also enhance the capacities of its backward integrated products i.e. ISO butyl benzene from 9000 TPA to 12000 TPA, MCA from 7200 TPA to 10500 TPA and Acetyl Chloride from 5200 TPA to 8400 TPA. Presently, the company is also in the process of setting up of a greenfield facility of producing anti-diabetic product i.e. Metformin, at Barnala, Punjab with a capax of Rs.10 crore, which will be met from internal accruals and likely to be completed during current financial year. The company has already commercialized unit 3 to manufacture Fenofibrate, Clopidogrel and Lamotrigine etc. with an investment of Rs.16.48 crore. Source :- Annual Report 2017 https://www.bseindia.com/xml-data/corpfiling/AttachHis/271de517-a790-4cfd-97bd-c615a3fdb495.pdf GLOBAL POSITION OF IOLCP IN IBRUPHEN MARKET :-  https://www.sharewise.com/us/news_articles/Global_Ibuprofen_Market_2018_Industry_Growth_with_CAGR_in_Forecast__2023__evamann_20180116_1001 TECHNICALS :- ·         RSI Positive. ·         Stock is trading above 30,50,100,150 Day’s SMA…200 SMA at 69.54 ·         Technically in strong uptrend ·         Accumulate … ·         UPSIDE POSSIBLE TARGET 90,93,100,120 KEEPING 75 AS Stop loss. HAPPY INVESTING ============================================== THE ABOVE IS NOT A RESEARCH REPORT NOT BUY/SELL RECOMMENDATION AND THIS IS ONLY FOR EDUCATIONAL PURPOSE , AND SOME OF MY FINDINGS FROM OPEN SOURCE. ONE CAN CONSULT THEIR FINANCIAL ADVISER BEFORE INVESTING. ============================= Happy Investing ============================================== Disclaimer:-  This is a personal blog and presents entirely personal views on stock market for only education purpose. Any statement made in this blog is merely an expression of my personal opinion. These informations are sourced from publicly available data. By using/reading this blog you agree to (i) not to take any investment decision or any other important decisions based on any information, opinion, suggestion, expressions or experience mentioned or presented in this blog (ii) Any investment decisions taken if any would be his/hers sole responsibility. (iii) the author of this blog is not responsible.  Before buying any stock take advice from SEBI certified person NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.  Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”