The Hindu Business Line : Firm crude prices lift India Glycols

The stock price of India Glycols has been witnessing a sharp surge in recent times with improved trading volumes on bourses. It gained about 23 per cent over a month and 5 per cent in a week’s time and closed at Rs 314 on Monday. Trading volumes remained a robust 1.36 lakh shares on the BSE and 2.02 lakh shares on the NSE. About 44 per cent of traded shares on the NSE was up for delivery.

According to market participants,

India Glycols, which is engaged in the manufacture of glycols, ethoxylates and performance chemicals, glycol ethers and acetates, is expected to announce good Q4 and FY-08 financial performance.

Analysts tracking the company say that it is likely to benefit from high crude prices, which is hovering above $115 a barrel for quite some time. Its product price is being determined by the crude oil rates. Besides, drop in molasses price – a key raw material – is also expected to lift its bottom line.

Its capex plans also bode well for the company, said analysts. The company would be further de-bottlenecking its Mono Ethylene Glycol (MEG) capacity with an estimated investment of Rs 25 crore. With this move, the overall production of MEG will be increased by 20 per cent. IGL is also planning to change this month the catalyst used in the manufacturing process at an additional cost of about Rs 25 crore, which shall further augment recoveries and enhance productivity.

Analysts say the company would be re-rated once the results are out.

However, the company is yet to communicate the exact date on which it would announce the result to the exchanges.

K.S. Badri Narayanan

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