Since April, thus far in the financial year 2020-21, the stock has zoomed 124 per cent from the level of Rs 176 on the BSE. In comparison, the S&P BSE Sensex has gained 6.7 per cent during the same period.
In past 12 trading days, IOL Chemicals & Pharmaceuticals has rallied 43 per cent after the company said it was recognized as a 'Three Star Export House' by the Ministry of Commerce & Industry, Government of India. This will facilitate the company to expand its product portfolio in the foreign market.
IOL is one of the leading APIs/ bulk drugs company and is a significant player in the specialty chemicals space with world-class facilities. IOL has wide presence across major therapeutic categories like, pain management, anti-convulsants, anti-diabetes, anti- cholesterol and anti-platelets.
Foreign portfolio investors (FPIs) were on a buying spree on the counter as their stake in the company more-than-doubled during the recently-concluded quarter. FPIs increased their holding in IOL Chemicals to 2.61 per cent in March 2020 quarter, from 1.32 per cent at the end of December 2019 quarter.
Total 14 new investors had acquired 733,415 equity shares or 1.29 percentage point stake in the company in January-March quarter (Q4FY20), the shareholding pattern data shows.
The company is yet to declare its financial results for the quarter ended March 2020. It had posted remarkable operational and financial performance for the first nine months (April-December) of the financial year 2019-20 (9MFY20).
IOL reported a healthy operational performance with 72 per cent year-on-year (YoY) growth in earnings before interest, tax, depreciation, and amortisation (Ebitda) at Rs 448 crore for 9MFY20. Ebitda margin expanded 1,000 basis points to 30.6 per cent from 20.5 per cent in the same period of the previous fiscal. The company’s income from operations increased by 15 per cent to Rs 1,464 crore from Rs 1,271 crore in 9MFY19.
The company's management remains optimistic about growth in the demand of the Ibuprofen and recently-launched new products in the medium to long term.
At 10:38 am, IOL Chemicals was trading 1.4 per cent higher at Rs 390 on the BSE, against 1.9 per cent decline in the S&P BSE Sensex. A combined 1.25 million equity shares changed hands on the counter on the BSE and NSE so far.