IG Petrochemicals Ltd (IGPL) reported a better set of numbers in Q3FY22 compared to our estimates. The company has posted revenue of INR 5,070mn with 7.6% YoY growth which was 4.2% above our estimate of INR 4,864mn. Revenue beat was mainly driven by optimum utilisation of PA4 and a higher than expected increase in the MA realisation. Despite increased contribution from high margin product (Maleic Anhydride-MA), gross margin witnessed 1203bps decline on a YoY basis due to contraction in PAN/OX spread. Absolute EBITDA grew by 16.4% YoY to INR 1121mn (est INR 758mn). However, the EBITDA margin declined by 849bps YoY to 22.1% (est.15.6%) from 30.6% in Q3FY21 due to a fall in the gross margin. PAN/OX spread is currently hovering between $150-$250 compared to a...

I G Petrochemicals Ltd. has lost -30.97% in the last 3 Months

I G Petrochemicals Ltd.

26 Nov 2021

406.90

-2.90%

BP Equities IG Petrochemicals Ltd Plant Visit Note

Sell: I G Petrochemicals Ltd.

BP Wealth

IGPL also forayed into the downstream product by introducing speciality plasticizer DEP (Di-Ethyl Phthalate). The company commenced commercial production of DEP (in Nov 21) with a capacity of 8,400 MTPA with a 50% increasing possibility at a minimum Capex. Since the compound Relative Price Chart is a suitable solvent for many organic molecules, it is often used to bind cosmetics and fragrances (mainly incense sticks and attar). Domestic demand for DEP is 22,000 MTPA with almost the same in terms of supply. The company is planning to cross-sell this product to existing plasticizer clients since...

I G Petrochemicals Ltd. is trading at high day volume of 81030.00000.

I G Petrochemicals Ltd.

06 Nov 2021

406.90

-2.90%

BP Equities IG Petrochemicals Ltd Q2FY22 Result Update

Sell: I G Petrochemicals Ltd.

Recommendation Target

BP Wealth

estimates. The company has posted revenue of INR4,711mn with 21.6% YoY growth which was 12.2% above our estimate of INR 4,198mn. Revenue beat was mainly driven by optimum utilization of PA4 and a sharp increase in the MA realization. Despite increased contribution from high margin product (MA), gross margin witnessed 449bps contraction on QoQ basis, and 167 bps decline on YoY basis due to contraction in PAN/OX spread. EBITDA surged by 133% YoY to INR 975mn (est INR...

I G Petrochemicals Ltd. is trading below all available SMAs

I G Petrochemicals Ltd.

27 May 2021

406.90

-2.90%

BP Equities IG Petrochemicals Ltd Q4FY21 Result Update

Buy: I G Petrochemicals Ltd.

Recommendation Target

BP Wealth

IG Petrochemicals Ltd (IGPL) has reported a seller margin performance led by a sharp surge in PAN/ OX spread and optimum utilization at newly commissioned capacity during the quarter. Revenue grew by 58.1% YoY to INR 4244mn mainly driven by higher realization due to short supply during Q4 as there is a healthy demand in the Paints, Plasticizers and other user industries. EBITDA surged by ~8x YoY to INR 1448mn (est INR 1178mn) with 2815bps YoY expansion in margin from 6% in Q4FY20 to 34.1% in Q4FY21 (est. 30%). This was mainly driven by 2687bps expansion in gross margin (47% vs 20.1% in Q4FY20) supported by improved PAN/OX spreads. Currently, PAN/OX spread is hovering between $250-$350 compared to a 10-year avg of $215 vs ~$320 in FY21 (as per our calculation)....

I G Petrochemicals Ltd. is trading below all available SMAs

Is I G Petrochemicals Ltd. worth buying?

195 Votes:

Buy 81.54%

Sell 12.82%

Hold 5.64%

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