India Glycols.. getting better

India Glycols uses molasses/ethanol as key raw materials and has 3 businesses derived from it. Past is average/volatile, but potentially a thematic stock, with reduced volatility as

Segment 1 is Green chemicals (an important buyer of its MEG is Coco-cola thereby reducing volatility of an erst while commodity biz). It also makes ethoxylates, a product that goes into agrochem/pharma.

Segment 2 is ENA (bottles for Bacardi and by itself is no 1 in state of UP country liquor). Likely to be largest part of ebitda.

Segment 3 is Neutraceuticals.

This is a simplistic way to explain a complex co, but this India ratings report does a better job. Stock is at approx 5x ebitda, not an unreasonable starting point.

Risks: I do not know why 84% of promoter’s shares are pledged.

https://indiaratings.co.in/PressRelease?pressReleaseID=53499&title=India-Ratings-Affirms-India-Glycols-at-‘IND-A-’%3B-Outlook-Stable

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The promoter pledge is owing to non disposal clause for loans given to the co. So the pledge is not the typical pledge. Still better is if no such clause were there as not all promoters are required to give such undertaking.