IN­DIA GLYCOLS LTD.

Flash News Investment - - RECOMMENDATIONS -

{Ticker : 500201 { BUY: ₹416.95 { Tar­get: ₹465

In­dia Glycols Ltd. is one of the lead­ing man­u­fac­tur­ers of glycols, eth­yl­ene ox­ide de­riv­a­tives, ethyl al­co­hol, nat­u­ral gum and in­dus­trial gases. It earns 35-40% of its rev­enue from ex­ports. Its prod­ucts are used across in­dus­tries like oil and gas, agro-chem­i­cal, tex­tiles, food pro­cess­ing, pa­per, pulp­ing, paint and many more. A ma­jor turn­around in prof­its and debt re­pay­ment was seen since FY17. The growth in FY18 was led by vol­ume growth. Also, in Q1FY19, the rev­enue was up by 11 per cent YoY to Rs 764 crore. Its EBITDA al­most dou­bled to Rs 112 crore from Rs 54 crore. The EBITDA mar­gin stood at 15 per cent as against 8 per cent in Q1FY18. The PAT jumped ex­cep­tion­ally by 425 per cent to Rs 42 crore from Rs 8 crore. Con­sid­er­ing the ro­bust fi­nan­cials and ris­ing de­mand across sec­tors, we rec­om­mend it as a BUY.

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