I G Petrochemicals Ltd Falls to 52-Week Low of Rs.348.05 Amidst Continued Underperformance

Stock Price Movement and Market Context

On 1 Feb 2026, I G Petrochemicals Ltd’s share price touched an intraday low of Rs.348.05, representing a 3.95% decline for the day and a 2.69% drop compared to the previous close. This price marks the lowest level the stock has traded at in the past 52 weeks, down from its high of Rs.519 during the same period. The stock has been on a losing streak for four consecutive days, cumulatively falling by 5.22% over this span.

The stock’s performance today notably lagged behind its sector peers, underperforming the Commodity Chemicals sector by 1.87%. Furthermore, I G Petrochemicals is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In the broader market context, the Sensex opened positively with a gain of 119.19 points but reversed sharply to close down by 889.60 points, or 0.94%, at 81,499.37. The Sensex itself is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating mixed signals for the overall market.

Long-Term Performance and Financial Metrics

Over the past year, I G Petrochemicals Ltd has delivered a negative return of 18.09%, contrasting with the Sensex’s positive 6.22% gain over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods.

The company’s operating profit has declined at an annualised rate of 3.92% over the last five years, reflecting subdued growth prospects. The most recent quarterly results, declared in September 2025, 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 steep 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.

Additionally, the company’s debtor turnover ratio for the half-year period was recorded at a low 0.69 times, indicating slower collection efficiency compared to industry norms.

Valuation and Capital Structure

Despite the challenges, I G Petrochemicals maintains a relatively low average debt-to-equity ratio of 0.06 times, suggesting limited leverage on its balance sheet. The company’s return on capital employed (ROCE) stands at 3.4%, which, while modest, contributes to a valuation that is considered very attractive based on an enterprise value to capital employed ratio of 0.9.

Relative to its peers, the stock is trading at a fair value when compared to historical averages, although this valuation has not translated into positive returns or profit growth. Over the past year, profits have declined by 40.9%, further weighing on investor sentiment.

Domestic mutual funds hold no stake in I G Petrochemicals Ltd, which may reflect a cautious stance given the company’s recent financial trajectory and market performance.

Sector and Benchmark Comparison

Within the Commodity Chemicals sector, I G Petrochemicals Ltd’s performance has been notably weaker than many of its peers. The stock’s Mojo Score currently stands at 29.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 6 Jan 2026. The company’s market capitalisation grade is rated at 3, indicating a smaller market cap relative to larger industry players.

The stock’s consistent underperformance against the Sensex and BSE500 indices over multiple years highlights the challenges faced in regaining investor confidence and market share within its sector.

Summary of Recent Trends

The stock’s recent decline to Rs.348.05 represents a continuation of a downward trend that has been evident over the past year and beyond. The combination of falling profits, negative quarterly results, and underwhelming returns relative to benchmarks has contributed to the current valuation and market sentiment.

While the company’s capital structure remains conservative with low debt levels, the lack of growth in operating profit and persistent losses in recent quarters have weighed heavily on the stock price. The absence of domestic mutual fund holdings further underscores the cautious approach taken by institutional investors.

Overall, I G Petrochemicals Ltd’s stock performance and financial metrics reflect a period of subdued activity and challenges within the Commodity Chemicals sector, as the company navigates a complex market environment.

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