Indo Borax & Chemicals Limited is an India-based company engaged in the manufacturing and selling of specialty chemicals, primarily focusing on boron and lithium products. Incorporated in 1980, the company has established itself as a specialized chemical manufacturer with a rich operational history spanning over four decades.
The company operates from its plant located in Pithampur, Madhya Pradesh. Indo Borax came into existence in 1980 and established its first Boric Acid plant at Asangaon, Maharashtra, in 1981, followed by a Borax plant in 1983. The company's stock was offered to the public in 1993, which received an overwhelming response, being oversubscribed by more than 1600%.
Indo Borax & Chemicals boasts a comprehensive product portfolio centered around boron and lithium compounds. The company's key products include:
- Borax products: Borax decahydrate crystal and borax decahydrate granular.
- Boric acid products: Boric acid Indian Pharmacopoeia (IP) grade, boric acid tech grade granular, and boric acid tech grade powder.
- Lithium products: Lithium hydroxide monohydrate (mentioned in the initial description, though details on its applications aren't elaborated in the provided text).
The company's products serve diverse industrial applications:
- Borax decahydrate crystal: Used as fluxes in metallurgical operations (welding and brazing steel industry, paste fluxes, soldering fluxes) and as micronutrients in fertilizers.
- Borax decahydrate granular: Utilized in fused products such as glass, glass fiber ceramics, frits, glazed, and porcelain enamels.
- Boric acid products: Applications include fluxes and metallurgical operations (welding, brazing, paste fluxes, soldering fluxes), and as a catalyst in cyclohexane and hydrocarbon oxidation. Boric acid IP grade is used in pharmaceuticals for eyewash, ointments, foot powder, shampoo, skin cream, mouthwash, and veterinary formulations.
IBCL is notable for being the first company in India to be awarded BIS certification for manufacturing Boric Acid Technical Grade.
The company has been actively expanding its product portfolio and addressing regulatory matters, demonstrating a forward-looking approach:
- Product Diversification: Indo Borax plans to launch Boron Oxide in July 2025, with a targeted capacity of 4,000 MT and an investment of ₹20 crore. This expansion signifies a strategic move to diversify its offerings within the boron chemicals segment.
- Regulatory Resolution: Customs duty demand of ₹10.57 crore was dropped, and related proceedings against Indo Borax were also dropped on June 5, 2025. This resolution eliminates a significant potential financial burden and regulatory uncertainty for the company.
As of recent financial data (June 2025), Indo Borax & Chemicals Ltd (INDOBORAX) has a market capitalization of ₹656.43 crore. The company has shown a mixed yet generally strong financial performance:
- Q4 FY2025 Performance: Revenue jumped 10.32% year-over-year to ₹53.87 crore. However, net profit for the same period fell by 10.49% year-over-year to ₹10.24 crore.
- Trailing Twelve-Month (TTM) Performance: The company recorded an operating revenue of ₹170.61 crore on a trailing 12-month basis.
- Profitability Metrics: Indo Borax demonstrates strong profitability with a Pre-tax margin of 27% and a Return on Equity (ROE) of 13%.
- Debt-Free Status: The company is debt-free, possessing a strong balance sheet that enables stable earnings growth across various business cycles.
- Market Capitalization: ₹656.43 crore (as of June 2025)
- Q4 FY2025 Revenue: ₹53.87 crore (up 10.32% YoY)
- Q4 FY2025 Net Profit: ₹10.24 crore (down 10.49% YoY)
- TTM Operating Revenue: ₹170.61 crore
- Pre-tax Margin: 27%
- Return on Equity (ROE): 13%
- Debt Status: Debt-free
INDOBORAX stock has experienced significant volatility, with its highest price reaching ₹262.65 in the last 52 weeks. The company trades with reasonable valuation metrics:
- Current PE Ratio: 15.41
- Current PB Ratio: 1.95
The company has delivered consistent long-term returns, with Indo Borax & Chemicals Ltd providing a return of 10.39% over the last 3 years. According to Value Research classification, it is categorized as a Small Cap company.
The managing director of the company is Sajal Jain. The strong promoter holding of 50.8% indicates significant confidence in the business. Notably, there is no promoter pledging in Indo Borax & Chemicals Ltd, suggesting a healthy and stable capital structure.
The company's subsidiary, Indoborax Infrastructure Pvt. Ltd (IIPL), allows for the segregation of infrastructure investments from core manufacturing operations, providing a clear organizational structure.
Indo Borax & Chemicals Ltd has firmly positioned itself as a specialized and reliable player in the boron and lithium chemicals sector. With a strong operational foundation, a focus on value-added chemical products, a debt-free status, and robust margins, the company presents an interesting proposition within the specialty chemicals industry.
