Synopsis:
Indian Emulsifiers Limited expects revenue to grow by 150–200% with new capacity and international orders. Margins are projected at 10–15%, improving annually by 200-300 basis points through product optimization, efficiency, and premium positioning.
This Micro-cap Chemical Stock, engaged in manufacturing, supplying, and marketing specialty chemicals, including esters, amphoterics, phosphate esters, imidazolines, wax emulsions, and SMO & PIBSA emulsifiers for industries, is in focus after the company announced strong revenue growth guidance of 150-200 percent.
With a market capitalization of Rs. 209 crore, the shares of Indian Emulsifiers Limited were currently trading at Rs. 114 per equity share, down nearly 1.94 percent from its previous day’s close price of Rs. 116.25.
Reason Behind the Surge
Indian Emulsifiers Limited continues to grow strongly, supported by new production capacity that is expected to increase revenue by 150-200 percent. This milestone marks significant progress toward becoming a leading specialty chemicals manufacturer with improved scale and efficiency.
The company’s Australian subsidiary, Southern Emulsifier Solutions Pty Limited, has completed its first order, entering the mining emulsifier market. With expected revenue of around Rs. 75 crore over the next three years, this success highlights the company’s growing international presence and ability to meet specific regional needs.
To support long-term growth, the company has acquired additional land at Lote Parshuram MIDC to build a modern facility. It has also developed new Polymers and Phosphonates for industrial water treatment, expanding into a new product segment and strengthening its diversified portfolio.
Furthermore, Indian Emulsifiers Limited’s margins are expected to be in the range of 10–15 percent, with annual improvement of 200–300 basis points driven by product optimization, operating leverage, and premium positioning.
Revenue Breakup
For FY25, Indian Emulsifiers Limited’s largest revenue share comes from the Mining Explosives and Lubricants segment, contributing 30.01 percent of total revenue. The Personal Care, Cosmetics, and Others segment follows with 23.32 percent, while Textiles and Others account for 17.71 percent.
The Metal Working, Oil & Gas segment contributes 10.9 percent, and Cleaning/Textiles represents 12.23 percent of the revenue. Smaller segments include Preservatives at 4.70 percent and Cleaning at 1.13 percent. This balanced mix highlights the company’s diversified presence across key industrial sectors.
Capacity Expansion
Indian Emulsifiers Limited makes emulsifiers and similar products, and improved efficiency and added new reactors, increasing capacity from 2,400 MT to 7,800 MT per year. This supports higher revenue, better profits, and a stronger presence in local and global markets.
Company Overview
Indian Emulsifiers Limited is a specialty chemicals manufacturer incorporated in 2020, focusing on products such as esters, amphoterics, phosphate esters, imidazolines, wax emulsions, and SMO & PIBSA emulsifiers for industries including food, pharmaceuticals, personal care, home care, lubricants, textiles, and mining..
The company operates a manufacturing plant at MIDC, Lote Parshuram, Taluka Khed, Ratnagiri, Maharashtra. Indian Emulsifiers specializes in manufacturing specialty chemicals, including esters used in lubricants and cosmetics, amphoterics for industrial cleaners, phosphate esters as flame retardants, imidazolines as corrosion inhibitors, wax emulsions for coatings, and SMO & PIBSA emulsifiers for oilfield applications
Recent quarter results
Coming into financial highlights, Indian Emulsifiers Limited’s revenue has increased from Rs. 32 crore in H1 FY24 to Rs. 50 crore in H1 FY25, which has grown by 56.25 percent. The net profit has also grown by 20 percent from Rs. 5 crore in H1 FY24 to Rs. 6 crore in H1 FY25.cIndian Emulsifiers Limited’s standalone revenue and net profit have grown at a CAGR of 56.95 percent and 80.28 percent, respectively, over the last two years.
In terms of return ratios, the company’s ROCE and ROE stand at 23.6 percent and 24.1 percent, respectively. Indian Emulsifiers Limited has an earnings per share (EPS) of Rs. 7.27, and its debt-to-equity ratio is 0.31x.
Written By – Nikhil Naik
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