1 week ago
India Glycols Demerger Seen Unlocking Shareholder Value; Buy Maintained
India Glycols plans to split into three separate businesses.
One will focus on specialty chemicals, another on spirits and biofuels, and the third on nutraceuticals and APIs.
The broker believes this could help each business receive more focused management attention.
IGL Spirits is already strong in Uttar Pradesh and Uttarakhand.
It makes some of its own ENA, which can help control costs.
The spirits business is also introducing more premium products.
The specialty chemicals business makes bio-based products for large companies.
The broker expects these changes to increase the company’s value and therefore recommends buying the shares.
The NCLT-approved trifurcation will separate India Glycols into specialty chemicals, spirits and biofuels, and nutraceuticals/APIs businesses.
IGL Spirits is the market leader in Uttar Pradesh and Uttarakhand, supported by captive ENA production and growing premium products.
Management aspires to achieve more than ₹500 crore in IGL Spirits EBITDA by FY27E and over ₹1,000 crore within four to five years.
India Glycols’ specialty chemicals business supplies bio-based products and has partnerships with Dove, L’Oréal and Unilever.
The broker maintains a Buy rating with a ₹1,639 target price, versus a CMP of ₹1,101.65, based on SOTP valuation.
- Who
- India Glycols, its three proposed businesses, company management and the recommending broker.
- What
- The broker maintained a Buy rating and ₹1,639 target price after assessing the company’s NCLT-approved trifurcation.
- Where
- The businesses operate across India, with IGL Spirits identified as a market leader in Uttar Pradesh and Uttarakhand and new nicotine capacity in Kashipur.
- When
- The report was published on August 20, 2026; estimates cover FY26-29E, with an IGL Spirits EBITDA target for FY27E.
- Why
- The broker expects the demerger to remove the conglomerate discount, sharpen management focus and unlock shareholder value.
Key facts
- Current market price
- ₹1,101.65
- Target price
- ₹1,639 per share
- Rating
- Buy
- Proposed structure
- India Glycols, IGL Spirits and Ennature Bio Pharma
- FY26-29E CAGR estimates
- Revenue 12%, EBITDA 15.4% and PAT 29%
- FY29E EBITDA margin estimate
- 16.9%
- IGL Spirits revenue growth
- IMFL revenue grew 26% year on year to 1.4 million cases
- Ennature Bio Pharma target
- Management targets ₹130-150 crore EBITDA in four to five years
Sources
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