Buy IG Petrochemicals Ltd; target of Rs 602: BP Equities

BP Equities has recommended buy rating on IG Petrochemicals Ltd with a target price of Rs 602 in its research report dated July 6, 2017.

July 12, 2017 / 15:21 IST

26 Aug, 2025 12:21

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BP Equities’ research report on IG Petrochemicals Ltd
IG Petrochemicals Limited being the flagship Company of the Dhanuka Group, is the largest manufacturer of Phthalic Anhydride (PAN) in India. It is one of the Lowest Cost producer of Phthalic Anhydride globally. PAN is a downstream product of Orthoxylene (OX) a basic Petrochemical. PAN is a versatile intermediate in organic chemistry. PAN is used as an intermediate for the production of Plasticizers, Unsaturated Polyster Resins, Alkyd Resins & Polyols. PAN is used in a variety of application in both consumer durables to non consumer durables. Applications for PAN are increasing rapidly, driven by new Research & Innovation. The company has 3 manufacturing facilities at a single location at Taloja in Maharashtra. The annual installed capacity is 1,69,250 MT.

Outlook

We initiate coverage on the stock & recommend ‘BUY’ rating by assigning 12x to its FY19E earning. We arrive at a target price of Rs 602 (potential upside of 38% from CMP) for an investment horizon of 12-15 months.

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