Established in 1956, IEL Ltd. is a leading player in the solvent extraction industry. According to reliable sources, the company has secured a massive order from Nayara Energy for their Vadinar Refinery.
IEL Limited
Shares of IEL Limited (BSE: 524614) are in the spotlight today after news emerged of a monumental ₹1200 crore order from Nayara Energy Limited for their Vadinar Refinery, India's second largest. Stock market experts predict this, coupled with a capital infusion by promoters, could propel the stock price from its current ₹8 to a staggering ₹40 within the next 3-4 months.
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Established in 1956, IEL Ltd. is a leading player in the solvent extraction industry. According to reliable sources, the company has secured a massive order from Nayara Energy for their Vadinar Refinery. To meet the capital requirements of this substantial project, IEL's promoters are planning a preferential issue to raise ₹150 crore, increasing their stake in the company to 75%.
Analysts believe this large order will significantly boost IEL Ltd.'s profitability and value. Additionally, the increased promoter holding is expected to instill greater investor confidence. Stock market experts are particularly bullish, predicting a potential price surge due to these positive developments. Some analysts even suggest the stock could reach ₹40 within the next three months.
Beyond the recent news, IEL Ltd. boasts strong fundamentals. The company has consistently delivered healthy revenue and profits, and maintains a debt-free balance sheet. Adding to its attractiveness, the stock's current PE ratio stands at just 14, significantly lower than the industry average of 35. It also trades at a price-to-book ratio of 1.5 and boasts an impressive return on equity (ROE) of 54.5% over the last three years. With nearly ₹45 crore in reserves and a significant improvement in working capital efficiency (reduced from 74.7 days to 26.5 days) and debtor days (from 160 days to 82.0 days), IEL Ltd. appears fundamentally undervalued.
The news of the large order and capital infusion has also caught the attention of institutional investors, with FIIs and DIIs showing increased interest in the stock. With solid fundamentals and a promising future fueled by the massive new order, analysts believe IEL Ltd. has the potential to reach ₹40 in the next 3-4 months. The focus, however, remains on the successful execution of this large order, which could be a major driver for the company's growth and stock price.
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