Diversified chemicals firm, India Glycols gained 6.42% or Rs 10.90 to end at Rs 180.80. It touched a 52-week high of Rs 195.45. It touched an intraday high of Rs 195.45 and an intraday low of Rs 173. Over the last five trading sessions, it has gained 38%. There were pending buy orders of 8,585 shares, with no sellers available. The total traded volumes were 1,579,443 shares.
Why the run-up?
The company is a well-diversified company that has presence in chemicals, pharmaceuticals, spirits and sugar space. The only green petrochemical company manufactures glycol ethers and acetates. The company, which was established as a single mono-ethylene glycol plant in 1983 went the green way by manufacturing ethylene oxide and its derivatives.
It treaded the green path again when it started using the molasses-ethyl alcohol-ethylene, a one of a kind approach by any company in the world. With an approach towards shifting to environmentally responsible manufacturing, the company is well positioned to meet the industry's requirements.
Apart from chemicals, the company has significant presence in the pharma space through Ennature Biopharma that specialises in the manufacture of APIs, neutraceuticals and natural food colours.
With molasses being a by-product of the sugar manufacturing process and is one of the raw materials used in the company's alcohol production, the company's sugar manufacturing unit is all set to take advantage of this through Shakumbari Sugars, a well established sugar company in Uttar Pradesh.
The company has undertaken co-generation of both electricity and heat with a 16-megawatt capacity, using an environmentally responsible method. Saved Bagasse from the sugar plant, another by-product, and spent wash from the distillery are used as fuel ? a green method by which fuel consumption is kept to a minimum.
Spent wash is also used to produce an organic fertiliser. The sugar division also produces ethanol which is supplied to various oil refineries.
In the quarter-ended June 2010, the company reported revenues of Rs 338 crore with a net loss of Rs 7.7 crore. In FY09-10, it reported revenues of Rs 1143 crore and a net profit of Rs 20 crore.
What expert says:
There was a time when India Glycols was a traders delight and after a long time we have seen that kind of a movement in the stock probably the good days are back for the stock and we can see some recovery in this stock. So the price target is Rs 163."
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