IOL Chemicals and Pharmaceuticals (formerly Industrial Organics) - 524164

Name of Company	IOL Chemicals and Pharmaceuticals (formerly Industrial Organics)
BSE Code	524164
NSE Code	Not traded
ICICI Code
Established	1986
My Take	Like
Headquarters	Ludhiana, Punjab
Promoters	CMD-Varinder Gupta,
Story	One of the largest manufacturers of APIs and specialty chemicals with presence in over 52 countries across the world, IOLCP manufactures and supplies APIs and specialty chemicals for use in various pharmaceutical, Textile, Packaging, Lamination, Pesticides, Food processing applications. Its product portfolio includes APIs, lbuprofen, specialty chemicals such as ethyl acetate, acetic anhydride, Iso Butyl Benzene, Mono Chloro Acetic Acid and Acetyl Chloride and bulk chemicals such as Glacial Acetic acid. IOLCP is currently in a phase of expansion with an investment outlay of Rs. 256 Crore which would include capacity expansion for its various product lines, forward and backward integration and increase in cogeneration of power. IOLCPs overseas customers are spread out across several countries including Argentina, Brazil, China, Denmark, Germany, Singapore, Hong Kong, Kenya, Malaysia, Peru, Egypt and many others. The company has strong business relationships with a number of prestigious clients such as Ranbaxy Labs, Aurobindo Pharma, Dr Reddy, DS Group, CIPLA, Uflex Industries, ITC Limited, ICI Paints, Asian Paints, Pidilite, Rallis India, Hindustan Polymide, Gujarat Super Phosphate, Avon Organics Ltd. etc.
Sector	Pharma
Sub-sector	Chemicals and API's for pharma
Website	http://www.industrialorganics.com/
Positives	Company has reported excellent results for Q3 with PAT of 6.38 crs. as against 86 lakhs in corresponding quarters of previous year. Company has recently commenced manufacturing operations at its new Plant of IBB with capacity of 6600 TPA which is R/M for its Pharma Product 'Ibuprofen.IOL is second company in India to produce IBB.Production capacity of Ibuprofen has also been increased to 3600 TPA.IOL has also started production of MCA with 7200 TPA capacity and Acetyl Chloride with 5200 TPA capacity. These are also R/M for Ibuprofen.With completion of backward integration and expansion (as company has cogen power also), IOL is emerging as an efficient chemical-cum-pharma company in India and should report excellent results in coming quarters.At present prices of 66 its quoting at just 5.5 times its forward earnings. 52 week high is 108. >50% promoter share holding.
Negatives	CARE BBB rating, OPM's ranging from 1.5% to 7% (average is 4%).
Peers	Ester Industries, English Indian, Jindal poly