Stock Price Movement and Market Context
On 2 Feb 2026, I G Petrochemicals Ltd’s share price declined to Rs.344, the lowest level in the past year. This new low comes after the stock experienced a consecutive five-day fall, resulting in a cumulative loss of 6.44% over this period. Despite this, the stock marginally outperformed its sector by 0.35% on the day.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This contrasts with the broader market, where the Sensex recovered sharply after a negative opening, gaining 1,047.36 points to close at 81,603.04, up 1.09%. Mega-cap stocks led the market rally, while I G Petrochemicals, a small-cap commodity chemicals company, continued to lag behind.
Long-Term Performance and Relative Benchmarking
Over the last year, I G Petrochemicals Ltd has delivered a negative return of 23.69%, significantly underperforming the Sensex, which posted a positive return of 5.37% during the same period. The stock has also consistently underperformed the BSE500 index across the past three annual periods, highlighting ongoing challenges in maintaining competitive growth and investor confidence.
The 52-week high for the stock was Rs.519, indicating a substantial decline of approximately 33.7% from that peak to the current low of Rs.344.
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Financial Performance and Profitability Trends
The company’s financial results have reflected a challenging environment. Operating profit has declined at an annualised rate of 3.92% over the past five years, indicating subdued growth momentum. The most recent quarterly results were notably weak, with operating profit falling by 48.36%, leading to a very negative earnings report in September 2025.
For the last two consecutive quarters, the company has reported negative results. Profit before tax excluding other income (PBT LESS OI) stood at a loss of Rs.6.99 crore, a decline of 152.5% compared to the previous four-quarter average. Similarly, the net profit after tax (PAT) was negative Rs.2.00 crore, down 113.2% relative to the prior four-quarter average.
These figures underscore the pressures on profitability and the difficulty in reversing the downward trend in earnings.
Operational Efficiency and Working Capital Metrics
One of the concerning indicators is the company’s debtors turnover ratio, which was recorded at a low 0.69 times for the half-year period. This suggests slower collection cycles and potential inefficiencies in working capital management, which could further strain liquidity and operational flexibility.
Market Perception and Institutional Holding
Despite the company’s size within the commodity chemicals sector, domestic mutual funds hold no stake in I G Petrochemicals Ltd. Given that mutual funds typically conduct thorough on-the-ground research, their absence may reflect reservations about the company’s current valuation or business prospects.
Valuation and Capital Structure
On a positive note, the company maintains a low average debt-to-equity ratio of 0.06 times, indicating limited leverage and a conservative capital structure. The return on capital employed (ROCE) stands at 3.4%, which, while modest, contributes to a valuation that is considered very attractive. The enterprise value to capital employed ratio is 0.8, suggesting the stock is trading at a fair value relative to its peers’ historical averages.
However, these valuation metrics have not translated into positive returns, as the stock’s profits have declined by 40.9% over the past year, reinforcing the challenges faced by the company.
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Mojo Score and Analyst Ratings
I G Petrochemicals Ltd currently holds a Mojo Score of 29.0, categorised as a Strong Sell. This represents a downgrade from its previous Sell rating, which was revised on 6 Jan 2026. The company’s market capitalisation grade is 3, reflecting its relatively modest size within the commodity chemicals sector.
The downgrade to Strong Sell is primarily driven by the company’s deteriorating profitability, negative quarterly results, and consistent underperformance against benchmarks.
Summary of Key Metrics
To summarise, the stock’s key performance indicators include:
- 52-week low price: Rs.344
- 52-week high price: Rs.519
- One-year return: -23.69%
- Operating profit annual growth (5 years): -3.92%
- Recent quarterly operating profit decline: -48.36%
- PBT LESS OI (quarterly): Rs. -6.99 crore, down 152.5%
- PAT (quarterly): Rs. -2.00 crore, down 113.2%
- Debtors turnover ratio (half-year): 0.69 times
- Debt to equity ratio (average): 0.06 times
- ROCE: 3.4%
- Enterprise value to capital employed: 0.8
These figures collectively illustrate the pressures on I G Petrochemicals Ltd’s financial health and market valuation, contributing to the stock’s recent decline to its 52-week low.
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