IOL Chemicals & Pharmaceuticals Approaches Breakout From 3-Year Base: SEBI RA Rajneesh Sharma

IOL Chemicals & Pharmaceuticals Ltd (IOLCP) is testing a breakout from a 3-year Darvas Box base between ₹71.59 and ₹101.96, with buyers stepping in earlier on each resistance test, according to SEBI-registered analyst Rajneesh Sharma. 

At the time of writing, IOLCP shares were trading at ₹93.55, up ₹3.75 or 4.2% on the day.

He said the stock is currently making its fourth approach to the ₹101–₹105 zone.

Sharma said that the price structure has matured, marked by higher lows on the chart and tighter compression. 

He said a break above ₹105 would open the path toward ₹122–₹130. 

In case of failure, an orderly retest toward ₹80–₹85 is expected, which he said would likely form another higher low.

On the business side, Sharma pointed to several drivers behind the current structure. 

He said non-Ibuprofen APIs now contribute 34% of API revenue, up from 18% five years ago. 

The analyst cited the commissioning of a paracetamol unit with 10,800 MTPA capacity, a 33% expansion in clopidogrel capacity, and ibuprofen export approval for China. 

He added that IOLCP has secured new certificates of suitability (CEPs) for Mesalazine and Quetiapine.

Sharma also mentioned that export revenue currently stands at 27%, with a target of 40–45%, and that net debt-to-equity is at 0.09. 

He said the company has acquired 101 acres for API expansion.

The analyst added that the current breakout attempt is not a random test, but follows three years of box building accompanied by improving fundamentals. 

Sharma said the next few weeks will determine whether the breakout is absorbed by supply again or if the structure gives way.

On Stocktwits, retail sentiment was 'bullish' amid 'normal' message volume.

The stock has risen 13.7% so far in 2025.

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