IOL Chemicals hits record high in weak market, zooms 34% in 3 days

The management remains optimistic about growth in the demand of the Ibuprofen and recently launched new products in medium to long term

Shares of IOL Chemicals & Pharmaceuticals (IOL) rallied 19 per cent to hit an all-time high of Rs 246 on the BSE on Tuesday on the back of heavy volumes in an otherwise weak market.

The stock of pharmaceutical company surpassed its previous high of Rs 235 touched on May 30, 2019. In past three trading days, it zoomed 34 per cent as compared to 1.8 per cent decline in the S&P BSE Sensex.

IOL had reported a healthy operational performance with 20 per cent year on year (YoY) growth in earnings before interest, tax, depreciation, and amortisation (Ebitda) at Rs 163 crore in December quarter (Q3FY20). Ebitda margin expanded 326 basis points to 31.65 per cent from 28.39 per cent in the previous year quarter. The company’s income from operations increased by 8 per cent to Rs 515 crore from Rs 479 crore in the corresponding quarter of previous fiscal.

The company's management remains optimistic about growth in the demand of the Ibuprofen and recently launched new products in medium to long term and target to gain in the market with focused efforts to improve sales and customer satisfaction.

IOL is one of the leading APIs/ bulk drugs company and is a significant player in the specialty chemicals space with world class facilities. IOLCP has wide presence across major therapeutic categories like, pain management, anti-convulsants, anti-diabetes, anti- cholesterol and anti-platelets.

At 02:36 pm, the stock was trading 13 per cent higher at Rs 234 on the BSE, as compared to 0.79 per cent fall in the S&P BSE Sensex. The trading volumes on the counter jumped six-fold with a combined 6.2 million shares changing hands on the NSE and BSE so far.