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India Glycols shares surged almost 14% intraday on the BSE on Tuesday, 13 October, looking set to snap their three-day losing run. India Glycols share price opened at ₹323.35 against its previous close of ₹319.65 and jumped 13.8% to hit an intraday high of ₹363.90.
While there is no latest update from the company that could drive the stock price higher, the gains in the stock are driven by a surge in volume. On Tuesday, the stock witnessed a spurt of over 7.73 times in volume.
The sharp jump in volume appears to be driven by speculations that the company may soon announce the listing dates of its two demerged entities- IGL Spirits Limited and Ennature Bio Pharma Limited.
On 8 October, the BSE sought clarification from India Glycols due to significant movement in price, in order to ensure that investors have the latest relevant information about the company.
On 9 October, the company clarified that, except for the information and disclosures already made by it to the stock exchanges, there is no material information, announcement or event pertaining to it that remains undisclosed and is required to be disclosed.
It further stated that it is not aware of any specific reason for the movement in the price of its shares, and that the movement appears to be market-driven.
India Glycols shares recently hit a 52-week high of ₹399.95 on 8 October, while their 52-week low level is ₹171.49, touched on 27 January this year.
According to the latest BSE data, the stock has jumped 75% over the last six months. On longer timeframes, the stock has given multibagger returns.
In the last two years, the stock has gained 120%, while in the last three and five years, it has surged 362% and 246%, respectively. Over the last 10 years, the stock has given a stellar return of 2,435%.
On 1 September this year, India Glycols demerged into three separate entities — India Glycols Limited, IGL Spirits Limited, and Ennature Bio Pharma Limited.
India Glycols will own the chemicals, glycols, bio-glycols, new speciality products and industrial gases businesses, while IGL Spirits will own the spirits business, including country liquor and bio-fuel businesses. Ennature Bio Pharma will own the bio-pharma and bio-polymers businesses.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, underscored that the corporate restructuring and three-way demerger of India Glycols has fundamentally transformed the company into three distinct, focused entities.
"This strategic split was designed to unlock hidden shareholder value by eliminating the conglomerate discount, allowing each individual business segment to operate independently with tailored capital allocation and pure-play valuation multiples," said Srivastava.
"While short-term price discovery and listing timelines for the newly spun-off entities can trigger transitional volatility, the structural re-organisation clears the path for long-term value realisation as each pure-play vehicle attracts targeted institutional interest," Srivastava said.
Discussing the technicals of the stock, Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, said the stock is currently in an uptrend, sustaining above its key moving averages, indicating positive momentum and bullish market sentiment.
Patel underscored that the daily Relative Strength Index (RSI) is reportedly within the bullish range of 40–80, suggesting that buying interest remains strong, although a high RSI reading may indicate overbought conditions.
"The stock has support at ₹310, where buying interest may emerge and help limit further declines. On the upside, ₹380 is the resistance level, where the stock may face selling pressure. If the stock experiences a temporary decline while maintaining its overall upward trend, investors may consider buying on dips rather than entering after a sharp price rise," said Patel.
"However, investors should monitor price movements and market conditions, use an appropriate stop loss to manage potential losses, and avoid relying solely on technical indicators before making investment decisions," Patel added.
Vipin Kumar, AVP-Research at Globe Capital Market, said the stock is moving north in a higher-highs and higher-lows formation while holding strong above its long-term as well as short-term moving averages.
"Considering this chart structure, we suggest accumulating the stock on dips around the confluence zone of its price and moving average supports at the ₹300– ₹280 zone, targeting immediate price levels around ₹400 levels," said Kumar.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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