IOL Chemicals And Pharmaceuticals (NSE:IOLCP) Beneish M-Score : -3.24 (As of Mar. 29, 2025)

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What is IOL Chemicals And Pharmaceuticals Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.24 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for IOL Chemicals And Pharmaceuticals's Beneish M-Score or its related term are showing as below:

NSE:IOLCP' s Beneish M-Score Range Over the Past 10 Years
Min: -6.92 Med: -2.41 Max: 0.5
Current: -3.24

During the past 13 years, the highest Beneish M-Score of IOL Chemicals And Pharmaceuticals was 0.50. The lowest was -6.92. And the median was -2.41.

IOL Chemicals And Pharmaceuticals Beneish M-Score Historical Data

The historical data trend for IOL Chemicals And Pharmaceuticals's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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IOL Chemicals And Pharmaceuticals Beneish M-Score Chart

IOL Chemicals And Pharmaceuticals Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.67

-1.77

0.50

-2.26

-3.24

IOL Chemicals And Pharmaceuticals Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-	-3.24	-	-	-

Competitive Comparison of IOL Chemicals And Pharmaceuticals's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, IOL Chemicals And Pharmaceuticals's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

IOL Chemicals And Pharmaceuticals's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, IOL Chemicals And Pharmaceuticals's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where IOL Chemicals And Pharmaceuticals's Beneish M-Score falls into.

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IOL Chemicals And Pharmaceuticals Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of IOL Chemicals And Pharmaceuticals for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9517

0.528 * 0.8644

0.404 * 0.3456

0.892 * 0.9624

0.115 * 0.9054

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8895

4.679 * -0.06935

0.327 * 1.1058

-3.24

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₹4,831 Mil.
Revenue was ₹21,190 Mil.
Gross Profit was ₹6,959 Mil.
Total Current Assets was ₹11,198 Mil.
Total Assets was ₹22,444 Mil.
Property, Plant and Equipment(Net PPE) was ₹10,214 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹629 Mil.
Selling, General, & Admin. Expense(SGA) was ₹579 Mil.
Total Current Liabilities was ₹5,600 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0 Mil.
Net Income was ₹1,344 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹2,901 Mil.

Total Receivables was ₹5,274 Mil.
Revenue was ₹22,017 Mil.
Gross Profit was ₹6,250 Mil.
Total Current Assets was ₹9,204 Mil.
Total Assets was ₹20,221 Mil.
Property, Plant and Equipment(Net PPE) was ₹8,326 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹462 Mil.
Selling, General, & Admin. Expense(SGA) was ₹677 Mil.
Total Current Liabilities was ₹4,563 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(4830.9 / 21189.6)	/	(5274.1 / 22016.9)
	=	0.227984	/	0.239548
	=	0.9517

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(6249.8 / 22016.9)	/	(6958.6 / 21189.6)
	=	0.283864	/	0.328397
	=	0.8644

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (11197.7 + 10213.9) / 22444)	/	(1 - (9203.9 + 8325.6) / 20221.3)
	=	0.045999	/	0.133117
	=	0.3456

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	21189.6	/	22016.9
	=	0.9624

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(461.6 / (461.6 + 8325.6))	/	(629.1 / (629.1 + 10213.9))
	=	0.052531	/	0.058019
	=	0.9054

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(579.4 / 21189.6)	/	(676.8 / 22016.9)
	=	0.027344	/	0.03074
	=	0.8895

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 5600) / 22444)	/	((0 + 4562.6) / 20221.3)
	=	0.24951	/	0.225633
	=	1.1058

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(1344.3 - 0	-	2900.8)	/	22444
	=	-0.06935

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

IOL Chemicals And Pharmaceuticals has a M-score of -3.24 suggests that the company is unlikely to be a manipulator.

IOL Chemicals And Pharmaceuticals Beneish M-Score Related Terms

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IOL Chemicals And Pharmaceuticals Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » IOL Chemicals And Pharmaceuticals Ltd (NSE:IOLCP) » Definitions » Beneish M-Score

Traded in Other Exchanges

524164:India

Address

85, Industrial Area, 'A', Ludhiana, PB, IND, 141 003

Website

https://www.iolcp.com

IOL Chemicals And Pharmaceuticals Ltd is an India-based pharmaceutical company. The primary activity of the group is the manufacturing and sale of drugs and organic chemicals. The business activity is functioned through the Chemicals and Pharmaceutical segments. The Chemicals segment produces and sells chemicals such as Ethyl Acetate, Acetic Anhydride, Acetyl Chloride, Mono Chloro Acetic Acid, and Iso Butyl benzene, whereas the Pharmaceutical segment produces and sells various active pharmaceutical ingredients such as Ibuprofen, Metformin, Fenofibrate, Lamotrigine, and others. It derives prime revenue from the Pharmaceutical segment. Geographically, the group's products are sold in both the Indian and international markets.

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