Friday, September 9, 2022

IOL Chemicals & Pharmaceuticals Ltd(524164)- Doubling revenue in next four years


IOL Chemicals & Pharmaceuticals Ltd(524164)  closes   at 381.75  with  a   Gain of   +2.6%   on    on    07-September-2022  with formation of  a  Green   Candle    on Daily  Price Chart.

About the Company : IOL Chemicals & Pharmaceuticals Ltd is a leading pharmaceutical (APIs) company and is a significant player in the specialty chemicals space. It serves the domestic and export market. It is the largest player of Ibuprofen (pain killer) globally with a world market share of 35%

Sector Update :  Positive

Refinitiv  Average Score : 05/ 10

Financials : IOL Chemicals & Pharmaceuticals Ltd  has posted Net Sales / Revenue   of 2184.00 Cr & Net Profit of   166.0 Cr in FY2022 and expected to post Net Sales / Revenue   of 2450.00 Cr (+12%) & Net Profit of 221.72 Cr in FY2023  & Net Sales / Revenue   of 2630.00 ( +20.5%) Cr & Net Profit of 238.01Cr in FY2024.

Valuations  : The Company is now Trading at X1.70 of its  valuations of  FY2022 (Last 4 Quarters ) earnings with ~70% premium ;  at X0.75 of its FY2023 earnings with ~25%  Discount and at X0.70 of its FY2023 earnings with ~30%  Discount

EPS  will  improve from 22.80  in FY2022 to 44.450  in FY2024  .

Early Trend : As part of de-risking their business, Cos has started reducing the share of ibuprofen in their overall turnover, and add more popular products to the portfolio. It is spending Rs 100-150 crore in capex every year, and is adding production lines at its Barnala plant which is spread over 100 acres.

 

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0.70   which  makes is attractive .The  Equity Value Per Share ( Enterprise Value Method ) is  358.00

If We factor its FY2023 earnings/valuations, its Price arrives at 928.00

 

Disclaimer : We are / may going to take exposure shortly.

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Data Source NSE Website | Screener.In  | Capital Line Money Control |Refinitiv |

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