The shares of the Micro-cap company, specializing in manufacturing and supplying a wide range of specialty chemicals, particularly esters, phosphate esters, and imidazolines, are in focus after management gave Revenue Guidance of 45 percent growth in the next 3 years.
With a market capitalization of Rs. 217.31 Crores on Monday, the shares of Indian Emulsifiers Limited jumped upto 1.5 percent after making a high of Rs. 178.75 compared to its previous closing price of Rs. 175.25.
Indian Emulsifiers at a Glance
Indian Emulsifiers Limited, founded in 2020 as Indian Emulsifier Private Limited, is a leading manufacturer of specialty chemicals with a strong global presence across nine countries. The company boasts a highly experienced team with an average of over 30 years in the industry and operates a state-of-the-art manufacturing facility with a production capacity of 7,800 MTPA.
Indian Emulsifiers has built a diverse portfolio of more than 125 specialty chemicals and is committed to serving a wide range of industries with innovative, high-quality solutions.The company manufactures and supplies products such as esters, esterquats, polyamides, polymerized surfactants, sulphates, amphoterics, phosphate esters, imidazolines, wax emulsions, and other formulated specialty chemicals.
Its customer base spans industries including personal care, cosmetics, cleaning, preservatives, metal working, oil & gas, lubricants, mining, textiles, food, pharmaceuticals, agriculture, and paint & pigments, making Indian Emulsifiers a trusted partner for tailored chemical solutions worldwide.
Guidance & Capex of Indian Emulsifiers Limited
According to the latest conference call, the company anticipates a three-year revenue CAGR of around 40 to 45 percent, supported by upcoming capacity additions, further product innovations through R&D, and incremental contributions from its overseas operations.
They also likely plan to invest Rs. 50 crores to increase production capacity by 300 to 350 units. This will result in a 50 percent rise in capacity over the next 1–2 years, with the expansion expected to begin around August.
Financials & Others
The company’s revenue rose by 56.25 percent from Rs. 32 crore to Rs. 50 crore in H2FY24-25. Meanwhile, the Net profit rose from Rs. 5 crore to Rs. 6 crore during the same period.
The company has a P/E ratio of 15.49, which is much lower than the industry average of 52.71, and maintains a low debt-to-equity ratio of 0.31. It has also delivered a strong average ROE of 31.54 percent over the past three years.
Additionally, the company has achieved impressive growth, with an average three-year revenue growth of 55.65 percent and net profit growth of 489.37 percent during the same period.
In FY25, the company’s revenue was diversified across several sectors: Mining Explosives and Lubricants contributed 30.01%, Personal Care, Cosmetics, and Others accounted for 23.32%, Textiles and related segments made up 17.71%, Metal Working and Oil & Gas contributed 10.90%, Cleaning/Textiles combined for 12.23%, Preservatives accounted for 4.70%, and Cleaning alone contributed 1.13%.
Written by Sridhar J
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