India Glycols Limited

Basic Materials — Chemicals · NSE

₹328.00−₹0.55 (−0.17%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of India Glycols Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

India Glycols Limited manufactures and sells bio-based specialities and performance chemicals in India and internationally. It operates through Bio-based Specialities and Performance Chemicals, Potable Spirits, Ennature Biopharma, and Bio-Fuel segments.

IndustryChemicals

SectorBasic Materials

Employees1,400

Annual revenue₹4,158 Cr

How does it make money?

Turns over ₹4,158 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 1,400 employees supports ₹2.97 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin16.4%

Net margin7.0%

Revenue / employee₹2.97 Cr

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 11.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.7%

ROE10.0%

Peer median ROE15.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +61% while net margin moved +45% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+61%

Margin effect+45%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

• Debt/Equity of 0.58x is manageable
✗ Current ratio of 0.74 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
• Interest cover of 3.5x is adequate

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

87/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

6.6x

3Y Median

22.8x

40 monthly readings · mean 21.9x · range 6.7x–36.9x

Sector Median

33.8x

median of 3 sector peers

🟢Current valuation is approximately 71% below its 3y median of 22.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 80% below the peer median of 33.8x.

vs. its own history

Cheap

22.8x median over 40 months · -71%

vs. sector peers

Cheap

33.8x median of 3 peers · -80%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.6x

P/B

0.75x

EV/EBITDA

5.6x

PEG

0.20

Dividend Yield

2.29%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 12.2% to 16.4% over 3 years.
Return on equity is rising
ROE has improved from 6.6% to 10.0%.
Return on capital is rising
ROCE has improved from 8.4% to 11.7%.
Valuation below its historical average
At 6.6x the stock trades 71% below its own median of 22.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 52% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.74 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 52% over 3 years, from ₹1,112 Cr to ₹1,691 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.74 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.2% to 16.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 71% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.3% CAGR
Latest reported year was 8.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹54 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.5x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹2,198 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.6x

Cheap

Cheap against the generic band

P/B Ratio

0.75x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹49.39

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

11.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

8.6%

Modest

Modest growth

Profit Growth (YoY)

22.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.29%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹54 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹328

Operating Margin

11.2%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

0.74

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

311.4 / 612.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,577 Cr	₹3,294 Cr	₹3,694 Cr	₹4,158 Cr	+17.3%
EBITDA	₹314 Cr	₹426 Cr	₹545 Cr	₹683 Cr	+29.5%
EBITDA Margin	12.2%	12.9%	14.8%	16.4%	—
PAT (Net Profit)	₹125 Cr	₹173 Cr	₹231 Cr	₹293 Cr	+32.8%
EPS	₹22.78	₹27.94	₹37.29	₹45.95	+26.4%
ROE	6.6%	8.4%	10.2%	10.0%	—
ROCE	8.4%	10.1%	11.2%	11.7%	—
Total Debt	₹1,112 Cr	₹1,348 Cr	₹1,892 Cr	₹1,691 Cr	+15.0%
Free Cash Flow	-₹113 Cr	-₹114 Cr	-₹398 Cr	-₹54 Cr	—

🟢 Revenue has grown at 17.3% a year over 3 years.

🟢 EBITDA has grown at 29.5% a year over 3 years.

🟢 EBITDA Margin has risen from 12.2% to 16.4% over 3 years (+4.2 pts).

🟢 PAT (Net Profit) has grown at 32.8% a year over 3 years.

🟢 EPS has grown at 26.4% a year over 3 years.

🟢 ROE has risen from 6.6% to 10.0% over 3 years (+3.4 pts).

🟢 ROCE has risen from 8.4% to 11.7% over 3 years (+3.4 pts).

🔴 Total Debt has grown at 15.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,523 Cr

Total Liabilities

₹3,590 Cr

Total Debt

₹1,691 Cr

Cash & Equivalents

₹32 Cr

Operating Cash Flow

₹769 Cr

Capex

-₹823 Cr

Shareholding (proxy)

Institutional Holding

3.3%

Insider Holding

63.8%

Corporate Actions

Dividend Rate

₹7.5

Ex-Dividend Date

23 Mar 2026

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

4 mixed2 general

India Glycols (NSEI:INDIAGLYCO) - Stock Analysis

Simply Wall Street, 15 Oct

India Glycols Share Price Surges: 52-Week High, Valuation, Risks

Univest, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Did India Glycols shares crash 80%? Here’s why the plunge is not real

Fortune India, 02 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

India Glycols Splits Into Three Different Companies Effective September 1, 2026

Sahi, 01 Sept

Up 75% in 6 months! India Glycols shares surge 14% today - Should you buy? Experts decode

Livemint, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

India Glycols shares jump 5% after adjusting for demerger into three separate entities

CNBC TV18, 02 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.7/20

🔴Financial HealthStretched8.7/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.3/15

🟢ValuationAttractive12.8/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 13% a year17.3% CAGR
✓EBITDA margin holds above 14%16.4%
✗Debt / EBITDA stays below 2x2.5x
✗Free cash flow remains positive-₹54 Cr
✓Interest cover stays above 3x3.5x