2:1 Stock Split: Record Date 11 March,Pharma Stock Down 16% in a Month; Buy or Avoid?

IOL Chemicals and Pharmaceuticals has announced a subdivision of its stock in a 2:1 stock split ratio, with the ex-trade date set for March 11, 2025. This comes as the stock has witnessed a significant decline of 16% in the past month and over 30% in six months.

IOL Chemical Stock Split Details

In an exchange filing, the company announced the stock split, stating, "In accordance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in furtherance to our earlier intimations dated December 27, 2024, and pursuant to the approval accorded by the Shareholders of the Company through Postal Ballot on January 31, 2025, the Board of Directors has fixed Tuesday, March 11, 2025, as the 'Record Date' for determining the entitlement of Equity Shareholders for the purpose of the sub-division/split of the face value of Equity Shares of the Company."

This means that investors holding IOL Chemical shares as of March 11 will receive two shares for every one share they own, reducing the stock price proportionally while maintaining the overall market capitalization.

IOL Chemical Share Price Movement

IOL Chemical shares closed at Rs. 302, down 0.97% (2.95 points) in today's session. The stock has been under pressure, falling 10.48% in the last five days, 16% in a month, and 30.82% over six months.

IOL Chemical Dividend Announcement

Along with the stock split, IOL Chemical has also declared a Rs. 4 per share dividend, with the record date set for February 18, 2025.
IOL Chemicals and Pharmaceuticals Q3 FY25 earnings

IOL Chemicals and Pharmaceuticals reported its Q3 FY25 earnings, which showed a decline in profitability. The company's total income stood at Rs. 527.37 crore, down 0.90% year-on-year (YoY) from Rs. 532.18 crore in Q3 FY24. EBITDA rose 6.15% YoY to Rs. 50.94 crore from Rs. 47.99 crore but declined 3.63% quarter-on-quarter (QoQ). The EBITDA margin improved 64 basis points (bps) YoY to 9.66%, though it dropped 34 bps QoQ. Meanwhile, profit after tax (PAT) increased 7.31% YoY to Rs. 20.55 crore but fell 11.54% QoQ from Rs. 23.23 crore. On a nine-month basis, the company's total income declined 4.97% YoY, EBITDA dropped 22.98%, and PAT plunged 35.30%.

About IOL Chemical and Pharmaceutical Ltd.

IOL Chemicals and Pharmaceuticals is a leading pharmaceutical and specialty chemicals manufacturer in India, known for producing active pharmaceutical ingredients (APIs) and key intermediates. Founded in 1986, the company majorly focuses on the manufacture of Speciality Chemicals, and Organic Chemicals