I G Petrochemicals: This multibagger stock is down 49% from its all-time high; is this the right time to buy?

livemint.com:

₹1,017.90, it is currently down by 49%. Despite this steep drop, the stock's 10-year return stands at 2071%. In its recent analysis, domestic brokerage firm Keynote Capitals has initiated coverage on the company, assigning it a 'buy' rating and establishing a target price of ₹819 per share.

This forecast indicates a potential upside of 59.5% from the current closing price of ₹513.60 per share. Also Read: With no upside in mid, small caps; large-cap funds a good buy in 2024: Report I G Petrochemicals Limited (IGPL), the flagship company of Dhanuka Group, is the largest manufacturer of phthalic anhydride (PAN) in India. The company is one of the most cost-efficient producers of PAN globally.

PAN is a downstream product derived from orthoxylene (OX), a fundamental petrochemical. Functioning as a versatile intermediate in inorganic chemistry, PAN plays a pivotal role in the production of plasticizers, unsaturated polyester resins, alkyl resins, and polyols. Also Read: DMart stock drops nearly 4% after Q3FY24 business update; what should you do? As of FY23, IGPL has a capacity of 222,110 MTPA, working at a utilisation level of 90%.

The company owns over 55% of the PAN capacity in India, according to the brokerage. Capacity expansion: The brokerage said the company's ongoing brownfield capacity expansion is expected to lead to a rise in PAN capacity from 222,110 MT to 275,110 MT. Simultaneously, there is an expected augmentation in MAN and benzoic acid capacities from 7,660 MT to 9,160 MT and 1,000 MT to 1,250 MT, respectively.