IOLCP - Synergy in operations made monopoly in product integration

(ukdube) #41

How about debt? How they are going to reduce/manage.Presently debt is more than co M-Cap?Scaring.

(Mehul Shah) #42

That’s why stock is available at this price. The future projection is encouraging and last 2 years growth is impressive. They have capacity expansion plan in near future, however not planning to increase the debt.
So far management has discussed increasing top and bottom line, but never discussed anything on reduction of debt.
I am anticipating some deduction in debt gradually once they start earning net profit in double digit. Re-rating may happen. Next few quarters will be interesting. I would consider this stock as low risk high reward case at this juncture.

Disclosure : Recently taken tracking position.

(sri krishna bhutra) #43

In continuation to my post on BASF hiving off its stake various API businesses and keeping the Ibuprofen business with self.

A recent report of ICICI securities on Strides Shasun demerger lays emphasis on the API demerger being value accretive.

Quoting some test from the same - “The API portfolio of Strides includes several high value products such as generic Sevelamer (Renvela) and is one of the top five companies for supplying Ibuprofen API in US.”

Link to report -

(Sarabjeet Singh) #45

IOL firing on all cylinders , all segments performed resulting in excellent numbers

(Sarabjeet Singh) #48

Expect to repay debt of Rs 26 crore, says IOL Chemicals

([email protected]) #49

I was going through the Q4 presentation of Granules and found that even they make Ibuprofen and Metformin.
Wanted to understand from fellow members if that would have a dent on IOLCP as they are majorly into Ibuprofen and started or about to start Metformin
Any thoughts?

(Mittal.amit0509) #50

The management clearly mentioned that there will be incremental debt reduction. There is a huge consumer market lying ahead for IOLCP which they are planning to exploit. Even 5 % expansion in the US customer base would do wonders as the price rise has been substantially more there. A wonderful recent result history and the confidence of management to even surpass that and give a steeper growth graph makes it a total turn around story.

Disclaimer: I am invested in this scrip and my views can be biased. My projected target price is around 165-175 and that’s a near 100% increase , thanks to the beating it got in recent days along with all other mid-small caps