IVP Shares Rises 70% in Six Days; Hits 10% Upper Circuit for Third Day

On 18 February 2022, the shares of IVP Limited touched their upper price band for the third straight day. The shares opened at Rs. 192 apiece and would touch a three-year high of Rs. 201.85 on the BSE, its highest level since August 2018.

IVP Limited is engaged in producing various chemicals supplying to the composites, foundry, insulation and refractory industries in India and other countries. As of Monday, 21 January 2022, the company’s shares were trading at Rs. 166.80 apiece, down 4.93% with a volume of 43,637 and a market cap of Rs. 172 crores.

Now, let us take a deeper dive into the particulars of this share.

Know About the Company – IVP Limited

Founded in 1929, IVP Limited started as a vegetable oil producer and later diversified into other fields. Originally a part of the Tata Group, the Allana Group owns it today. The company has manufacturing facilities in Maharashtra and Karnataka, with a total annual capacity of 50,000 metric tonnes per annum.

IVP Limited was the first to manufacture foundry chemicals in India. Today, it produces the following products:

1. Resins: IVP Ltd. manufactures resins for fields like composites, insulation, foundry and footwear. Given are the category of resins it manufactures:

• Composite resin: The company manufactures FRP (fibre reinforced polymer) composites used to replace structures made of steel, wood, aluminium etc.

• Insulation resin: It produces the water-soluble thermosetting Ivarez 410 phenol-formaldehyde resol resin. The resin’s main application is a cost-effective binder for glass wool and rock wool.

• Powder resins: IVP Ltd. produces Ivarez 33, a Novolac shell resin in powder form used in making abrasives, felt bonding, wood moulding etc.

• Refractory resins: Ivarez 502, Ivarez 504 and Ivarez 509 are some Novolac resin solutions used for refractory applications.

2. Polyurethane (PU): Starting in 2017, this division is responsible for making PU chemicals for shoe soles and PU adhesives for flexible film packaging.

3. Foundry coating: IVP makes a wide variety of foundry coatings, including aluminium silicate, graphite and zircon in powder, paste and ready-to-use forms.

IVP Share Price Rises After Announcement of Q3 Results

Since its announcement of Q3 FY 2021-22 results, the company’s shares increased by 70% for six straight trading days. The company had reported a 47% increase in PAT (Profit after Tax) to Rs. 6.38 crores YoY (year-on-year). Revenues for the same period had increased to Rs. 156.96 crores, up 74% YoY from the previous year.

The company reported a 5.37% increase in total income from Rs. 149.67 crores in the quarter ending on September 2021. For the same period, its net profits rose by 72.9% from Rs. 3.69 crores. Meanwhile, its EPS (earnings per share) was up 72.11% from Rs. 3.57 last year to Rs. 6.18.

For the nine months period ending on December 2021, the company’s revenue had almost doubled from Rs. 172 crores to Rs. 383 crores. Its PAT had increased from 0.78 crores to Rs. 10.58 crores.

Parting Thoughts

IVP Limited has successfully expanded to manufacturing many new products, especially in the newer PU division for flexible laminated films. The company is now to further expand growth while reducing dependency on existing business segments.

On a positive note, the Indian Government is offering new incentives for export and product incentive schemes, which could help this company. Moreover, India is the second-largest producer of footwear and castings, which have seen strong growth. IVP Limited stands to benefit from increased market share in these sectors.

Frequently Asked Questions

1. How much have IVP shares increased in the past week and month?

For the past week, the shares of IVP have zoomed 30.32% from Rs. 127.65 on 15 February to Rs. 166.55 on 21 February. For the past month, it has increased by 30.94% from Rs. 124.20.

2. How have IVP Ltd.’s shares performed compared to the overall market?

As of 11:00 PM 18 February 2022, IVP shares were up 4% compared to S&P BSE Sensex at Rs. 191.50, which was down 0.05%.

3. Which stocks hit a 52-week high on 18 February 2022?

The shares of Sree Rayalaseema, Keynote Financial, TCPL Packaging, Jagsonpal Pharm and Times Guaranty hit 52-weeks high on the NSE on 18 February 2022.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.