India Glycols (IGL) shares have recently experienced a surge, gaining over 6% in intraday trade on May 13, 2025, and reaching a new all-time high of ₹1,645. This upward momentum extends the rally for the second consecutive session, marking an impressive nearly 18% increase in just two trading days.

Factors Driving the Surge

Several factors appear to be contributing to this positive performance:

• Upcoming Board Meeting: The surge comes ahead of the company's board meeting scheduled for May 16, 2025, where directors will consider and approve the audited financial results for the quarter and financial year ended March 31, 2025. A recommendation for a final dividend for FY25 will also be considered.
• Strong Q3 Performance: India Glycols posted strong results in Q3FY25 (October–December 2024), with consolidated revenue increasing 14% year-on-year to ₹2,424 crore. Profit after tax also grew significantly by 32.5% YoY to ₹71.42 crore, supported by a 145-basis-point expansion in EBITDA margin to 13.2%.
• USFDA Clearance: The company recently received an Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA) with zero observations for its Dehradun facility. This clearance, pertaining to its nutraceutical and dietary supplement ingredients, is expected to facilitate exports.
• Overall Market Sentiment: India Glycols has demonstrated strong performance in the chemicals sector and has significantly outperformed the Sensex over various timeframes, indicating a robust upward trend in its trading activity.
• Positive Returns: The stock has delivered remarkable returns over the past year. From a 52-week low of ₹685 in June 2024, the stock has surged nearly 140%. On a year-on-year basis, the scrip has gained 103%.
• Technical Analysis: Technical analysis indicates a strong short-term uptrend, with the 9-day SMA (Simple Moving Average) above the 21-day SMA, signaling recent momentum in the stock.

Company Overview

India Glycols Ltd., established in 1983, is a diversified green petrochemical company that manufactures and markets green technology-based bulk, specialty, and performance chemicals, natural gums, spirits, industrial gases, sugar, and nutraceuticals. It operates through various segments, including Bio-based Specialities and Performance Chemicals, Potable Spirits, and Ennature Biopharma. The company's products find applications across diverse industries such as agrochemicals, automotive, detergents, healthcare and food processing, oil and gas, mining, paper, personal care, pharmaceuticals, paints and emulsion polymerization, and textiles.

IGL's flagship chemicals division utilizes a "green route" to manufacture ethylene oxide and derivatives, using molasses-ethyl alcohol-ethylene. The company also has a significant presence in the natural active pharmaceuticals and nutraceuticals space, along with well-established natural gum and spirits divisions.

Financial Performance and Metrics

• Market Cap: ₹4,783 Crore.
• Revenue: ₹3,831 Cr.
• Profit: ₹209 Cr.
• 52 Week High: ₹1,563.20.
• 52 Week Low: ₹678.55.
• Dividend Yield: 0.52%.
• Promoter Holding: 61.01%.
• PE Ratio: 22.87.
• EPS (TTM): ₹67.54.

Analyst Recommendations and Target Prices

India Glycols Ltd. has an average share price target of ₹1580, representing a potential upside of 2.29% from the last price of ₹1544.70. However, it's important to note that analyst recommendations can vary, with some downgrading the stock while others maintain or increase their price targets. One independent analyst has given a "BUY" recommendation with a target of ₹168.

Points to Consider

While India Glycols has shown impressive recent performance, some factors warrant consideration:

• The company has delivered poor sales growth of -0.38% over the past five years.
• The company has a low return on equity (ROE) of 8.55% over the last 3 years.
• Revenue growth has been poor at 13.02% for the past 3 years.
• The company has a low EBITDA margin of 3.89% over the past 5 years.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.