I G Petrochemicals Ltd Falls to 52-Week Low Amid Continued Earnings Pressure

Stock Price Movement and Market Context

On 19 Jan 2026, I G Petrochemicals Ltd opened sharply lower with a gap down of -5.25%, hitting an intraday low of Rs.355.3, the lowest level in the past year. The stock has declined for two consecutive sessions, registering a cumulative loss of -1.24% over this period. Its day’s performance underperformed the commodity chemicals sector by -0.34%, signalling relative weakness within its industry group.

Technical indicators show the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a sustained bearish trend. This contrasts with the broader market, where the Sensex, despite a recent three-week decline of -3.22%, remains approximately 3.81% below its 52-week high of 86,159.02 points. The Sensex’s 50-day moving average remains above its 200-day average, indicating a longer-term positive trend for the benchmark index.

Financial Performance and Profitability Concerns

The company’s financial results have been under pressure, contributing to the stock’s subdued performance. Over the last five years, I G Petrochemicals has experienced a negative compound annual growth rate of -3.92% in operating profit. The September 2025 quarter results were notably weak, with operating profit falling by -48.36%, leading to a very negative earnings report.

Profit before tax excluding other income (PBT less OI) for the quarter stood at a loss of Rs.6.99 crore, a decline of -152.5% compared to the average of the previous four quarters. Similarly, the net profit after tax (PAT) was negative at Rs.2.00 crore, down -113.2% relative to the prior four-quarter average. These consecutive quarters of negative results have weighed heavily on investor sentiment and the stock’s valuation.

Operational Efficiency and Receivables

Further highlighting operational difficulties, the company’s debtors turnover ratio for the half-year period was recorded at a low 0.69 times, indicating slower collection cycles and potential liquidity constraints. Despite these challenges, the company maintains a low average debt-to-equity ratio of 0.06 times, suggesting limited leverage on its balance sheet.

Valuation and Market Capitalisation

Despite the recent price decline, I G Petrochemicals’ valuation metrics present a mixed picture. The company’s return on capital employed (ROCE) stands at 3.4%, and it trades at an enterprise value to capital employed ratio of 0.9, which is considered very attractive relative to historical peer averages. The market capitalisation grade is rated at 3, reflecting a moderate size within its sector.

However, the stock’s Mojo Score is 29.0, with a Mojo Grade of Strong Sell as of 6 Jan 2026, downgraded from Sell. This rating reflects the company’s deteriorating fundamentals and ongoing underperformance. Over the past year, the stock has delivered a negative return of -25.09%, significantly lagging the Sensex’s positive 8.33% gain over the same period. The stock’s 52-week high was Rs.519, indicating a substantial decline of over 31.6% from that peak.

Shareholding and Market Participation

Domestic mutual funds currently hold no stake in I G Petrochemicals Ltd, a notable absence given their capacity for detailed company analysis and research. This lack of institutional participation may reflect reservations about the company’s recent performance and outlook. The consistent underperformance against the BSE500 index over the last three years further underscores the stock’s challenges in delivering shareholder value.

Profitability Trends and Earnings Volatility

Profitability has been volatile and declining, with profits falling by -40.9% over the past year. The company has reported negative earnings for two consecutive quarters, a factor that has contributed to the stock’s downward trajectory. The negative quarterly results have been a key driver behind the stock’s current valuation and market sentiment.

Sector and Benchmark Comparison

Within the commodity chemicals sector, I G Petrochemicals Ltd’s recent performance has been subdued relative to peers and the broader market. The Sensex’s recent decline of -0.68% on the day and a three-week loss of -3.22% contrasts with the stock’s sharper declines and technical weakness. The stock’s persistent trading below all major moving averages highlights its relative underperformance and the challenges it faces in regaining momentum.

While the company’s low debt-to-equity ratio provides some financial stability, the combination of declining profits, negative quarterly results, and weak receivables turnover ratio presents a complex picture for stakeholders analysing the stock’s current position.

Summary of Key Metrics

To summarise, I G Petrochemicals Ltd’s key data points as of 19 Jan 2026 include:

• New 52-week low price: Rs.355.3


• Day’s low and open gap down: -5.25%


• Two-day consecutive decline: -1.24%


• Mojo Score: 29.0 (Strong Sell)


• Operating profit 5-year CAGR: -3.92%


• Quarterly PBT less OI: Rs.-6.99 crore (-152.5%)


• Quarterly PAT: Rs.-2.00 crore (-113.2%)


• Debtors turnover ratio (HY): 0.69 times


• Debt to equity ratio (avg): 0.06 times


• ROCE: 3.4%


• Return over 1 year: -25.09%


• Sensex 1-year return: +8.33%

The stock’s current valuation and financial indicators reflect a company facing multiple headwinds, with recent price action confirming a significant correction to its lowest levels in a year.

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