I G Petrochemicals, a small-cap player in the chemicals industry, has recently faced a downgrade in its stock call to ‘Sell’ by MarketsMOJO as of January 7, 2025. The company’s financial performance for the second quarter of FY24-25 has remained flat, raising concerns among analysts. Over the past five years, I G Petrochemicals has experienced a significant decline in operating profit, with an annual growth rate of -24.34%.
The company’s operating cash flow has reached a low of Rs 37.19 crore, while its debt-equity ratio stands at 0.32 times, the highest recorded in the first half of the year. Additionally, interest expenses have peaked at Rs 16.09 crore. The stock is currently in a mildly bearish range, having deteriorated from a mildly bullish trend earlier this month, resulting in a -1.4% return.
Despite a return of 1.81% over the past year, I G Petrochemicals has underperformed the broader market, which saw returns of 13.45% in the same period. The company’s valuation appears expensive, with a return on capital employed (ROCE) of 6 and an enterprise value to capital employed ratio of 1.2.
