Today, we are going to estimate the IGPL Share Price Target 2024 to 2050 Long Term Prediction. IGPL is listed on the NSE under the symbol “IGPL” and on the BSE with the code “500199”. let’s analyze the future of IG Petrochemicals shares as well, including whether it’s a good time to buy or sell them today.
Additionally, we will also take into analysis IGPL Share Recommendations from various brokerage firms, including Target’s High Price, Target’s Low Price and Recommendation at the end of the article.
Overview of IGPL
| Name | IG Petrochemicals Limited (IGPL) |
| Industry | Petrochemicals |
| Founded | 1988 |
| Services | Production of Phthalic Anhydride, Maleic Anhydride, Benzoic Acid, Diethyl Phthalate |
| Country | India |
| Website | igpetro.com |
| Profle | IG Petrochemicals |
Keep an eye on IGPL’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in IGPL’s stock price.
About IGPL Company
IG Petrochemicals Ltd. (IGPL), established in 1988, is a major force in the Indian petrochemical industry and a part of the prestigious Dhanuka Group. Based in Mumbai, IGPL has established itself as a leading and cost-effective manufacturer, specializing in Phthalic Anhydride (PAN), derived from Orthoxylene (OX), a key petrochemical.
IGPL’s dominance in the market is highlighted by its over 50% market share in India. Its strategic location in MIDC, Taloja, offers a competitive advantage by enabling efficient raw material procurement and reducing transportation costs. This location also positions IGPL as the closest PAN source for customers in Western India, lowering freight costs and improving accessibility.
The company is on a path of significant growth, driven by its ongoing capacity expansion. It is implementing a brownfield expansion to increase PAN capacity from 222,110 MT to 275,110 MT, while also enhancing its Maleic Anhydride (MAN) and Benzoic Acid capacities. This expansion, along with the expected normalization of the PAN-OX spread, is likely to boost gross profit and sales.
Financial of IGPL
Conduct a SWOT analysis of IGPL Share based on its financials. We will break down the key elements of strengths, weaknesses, opportunities, and threats using the financial data.
Strengths–
Consistent Revenue Growth: IGPL has shown a steady increase in total revenue from 10,585,802 in 2020 to 22,476,913 in the trailing twelve months (TTM).
High Gross Profit: The company’s gross profit has been robust, with a peak of 6,279,687 in 2021.
Strong Operating Income: IGPL’s operating income has grown significantly, reaching a high of 3,584,290 in 2021.
Solid Asset Base: The company’s total assets have increased consistently, from 11,614,316 in 2020 to 19,919,175 in 2023.
Weaknesses–
Increasing Cost of Revenue: The cost of revenue has been rising, potentially impacting profit margins.
Variable Net Income: Net income shows variability, peaking in 2021 at 2,645,032 but then declining.
Fluctuating Free Cash Flow: Free cash flow has been inconsistent, turning negative in the TTM period (-847,198).
Rising Operating Expenses: Operating expenses have increased over the years, which could affect profitability.
Opportunities–
Market Expansion: With solid revenue growth, IGPL could explore new markets or product lines.
Efficiency Improvements: By optimizing operations and reducing costs, the company can improve its profit margins.
Leveraging Assets: The substantial asset base provides an opportunity for collateral-based financing or asset utilization to generate additional revenue.
Threats–
Competitive Market: The increasing cost of revenue suggests a competitive market, which could pressure profit margins.
Economic Fluctuations: As a large company, IGPL could be sensitive to economic changes, impacting its financial performance.
Interest and Debt Management: The company needs to manage its debt and interest expenses effectively to maintain financial health.
An effective method for evaluating the IGPL share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on IGPL.
| DATE | AUTHOR | TARGET | TYPE |
|---|---|---|---|
| 02 JAN 2024 | Keynote Capitals Ltd | 819.00 | Buy |
The financial services firm Keynote Capitals Ltd published the latest research report on IGPL Share Price Target, assigning a ‘buy’ rating with a share price target of Rs. 819 from its current market price of Rs. 500.
Currently, IGPL’s PAN production capacity stands at 222,110 MTPA, operating at about 90% efficiency. The company’s forward-thinking expansion strategy includes increasing this capacity to 275,110 MTPA. Additionally, IGPL plans to boost its Maleic Anhydride and Benzoic Acid capacities. These expansions require an investment of Rs. 3.5 billion, are expected to generate sales between Rs. 4.5 to 5 billion upon reaching full capacity, slated for completion in Q4 FY24.
IGPL is not just expanding its production capacity but also diversifying its product range. The company is in the process of obtaining environmental clearance for producing Advanced Plasticizers, a downstream derivative of PAN. This project, still awaiting board approval, could command a significant capital expenditure of Rs. 1.5 to 2 billion, with a revenue potential of approximately Rs. 8 to 9 billion.
A key advantage for IGPL is its strategic location in MIDC, Taloja, enabling efficient raw material procurement and cost advantages over competitors. This location also allows IGPL to serve as a primary PAN source for the western chemical belt of India, further reducing freight costs.
Financially, IGPL has shown resilience and growth potential. For FY23, the company reported a revenue of Rs. 24 billion, an EBITDA of Rs. 3 billion, and a net profit of Rs. 2 billion, with total assets amounting to Rs. 20 billion. Looking ahead, analysts project a bright future for IGPL, with revenue and profit expected to grow in FY24 and FY25.
In light of these factors, Keynote Capitals Ltd. has initiated coverage on IGPL with a strong BUY recommendation. The target price for IGPL shares is set at approximately Rs. 819, indicating a potential upside of 64%. This optimistic outlook is backed by the expected increase in sales and improved EBITDA margins from the new capacity additions and the widening spread of PAN & OX.
We will analyze the performance of the company’s shares in recent times and provide you with a well-researched IGPL Share Price Target 2024, 2025, 2030 to 2050 based on our Research knowledge and forecasting.
| Year | Minimum Target (₹) | Maximum Target (₹) |
|---|---|---|
| 2024 | ₹580 | ₹650 |
| 2025 | ₹650 | ₹750 |
| 2026 | ₹720 | ₹830 |
| 2027 | ₹800 | ₹950 |
| 2028 | ₹900 | ₹1,080 |
| 2029 | ₹1,020 | ₹1,220 |
| 2030 | ₹1,150 | ₹1,400 |
| 2035 | ₹1,700 | ₹2,250 |
| 2040 | ₹2,300 | ₹3,000 |
| 2050 | ₹3,500 | ₹4,500 |
Peer Comparison of IGPL
| Name | P/E | Mar Cap Rs.Cr. |
|---|---|---|
| Pidilite Inds. | 93.67 | 141027.72 |
| SRF | 42.87 | 74313.82 |
| Solar Industries | 75.20 | 60777.37 |
| Linde India | 112.79 | 47008.01 |
| Gujarat Fluoroch | 46.57 | 42622.77 |
| Deepak Nitrite | 42.50 | 33917.61 |
| Tata Chemicals | 14.30 | 28359.84 |
| IG Petrochems | 14.48 | 1584.02 |
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– As of 3 January 2024, the current share price of IGPL is ₹516 Check out today’s current share price of IGPL in the top.
– According to Google historical data, the price of IGPL on 2 FEB 2007 was ₹68.55.
– The latest research report from Keynote Capitals Ltd sets an IGPL Share Price Target of Rs. 819
– Based on our analysis, the maximum IGPL Share Price Target in 2025 is projected to be ₹750.
– Based on our analysis, the maximum IGPL Share Price Target in 2027 is projected to be ₹950.
– Based on our analysis, the maximum IGPL Share Price Target in 2030 is projected to be ₹1,400.
– Based on our analysis, the maximum IGPL Share Price Target in 2035 is projected to be ₹2,250.
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict share prices.
Disclaimer– These Share Price Targets for “IGPL Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold IGPL stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com
