IOLCP at crucial levels! | CHART#18

Jul 4, 2021

IOL Chemicals & Pharmaceuticals Ltd. engages in the manufacture of organic and inorganic chemical compounds. It operates through two segments: Chemicals and Drugs. The Chemical segment produces and sells ethyl acetate, iso butyl benzene, acetyl chloride, and mono chloro acetic acid. The Drug segment offers a various active pharmaceutical ingredients such as ibuprofen, metformin, fenofi brate, and lemotrigine.

*Stock Analysis*

• Stock has been flowing inside a descending channel (Yellow) after reaching its peak at 898.90 levels.
  
• Sub channel has been formed inside this channel which is of opposite nature (Violet) with above average volume which indicates potential buyers around this region.
  
• Sub channel lost its upward momentum on touching the main channel at 725 levels thus retracing to 600 levels and probably took support at trendline.
  
• Volume spike is seen at 600 levels, RSI pointing upwards so we can establish 600 levels as Demand/Buying Zone.
  
• Once its enters the channel (Violet), upward travel starts to 725 and 790 levels.
  
• Coming to the fundamentals - IOLCP is a fundamentally strong company which has its roots in chemical industry.
  
• It has a CAGR of 67%, ROE track record of 51.94% and its a Debt free company.
  
• P/E ratio is nearly 8.54 which is less than Industrial average due to consistent increase in Earnings.
  

*Important Levels to Watch*
-- Entry @ above 670 levels on support
-- Target @ 725 | 790
-- SL @ 525

Notes :

• FII has reduced the stake from 7.7% to 5.9% YoY. Major stake(50%) is with public. So stock can be affected by news based panic selling
  
• India's specialty chemicals market to grow to $40 billion by 2025: McKinsey
  

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❗❗Disclosure : I am not a SEBI registered analyst. The information provided here is for education purposes only. I will not be responsible for any of your profit/loss with this suggestions. Consult your financial advisor or do your own analysis before taking any decision❗❗