In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
NSE:IOLCP's Price-to-Net-Net-Working-Capital is ranked worse than 91.11% of 416
companies
in the Drug Manufacturers industry
Industry Median: 7.76
vs NSE:IOLCP: 85.53
IOL Chemicals And Pharmaceuticals (NSE:IOLCP) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
IOL Chemicals And Pharmaceuticals Net-Net Working Capital Related Terms
IOL Chemicals And Pharmaceuticals Net-Net Working Capital Historical Data
* 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.
IOL Chemicals And Pharmaceuticals Net-Net Working Capital Chart
NSE:IOLCP vs ZTS, UTHR: Net-Net Working Capital Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, IOL Chemicals And Pharmaceuticals's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, IOL Chemicals And Pharmaceuticals's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where IOL Chemicals And Pharmaceuticals's Price-to-Net-Net-Working-Capital falls into.
* 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of ₹2.00 mean?
IOL Chemicals And Pharmaceuticals (NSE:IOLCP) has a Net-Net Working Capital of ₹2.00 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on IOL Chemicals And Pharmaceuticals According to the industry distribution chart, IOL Chemicals And Pharmaceuticals ranks #379 out of 416 companies in the Drug Manufacturers industry, placing it in the top 91.1%.
Is IOL Chemicals And Pharmaceuticals' Net-Net Working Capital too high?
IOL Chemicals And Pharmaceuticals' current Net-Net Working Capital is ₹2.00. Based on the distribution chart, IOL Chemicals And Pharmaceuticals ranks #379 out of 416 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, IOL Chemicals And Pharmaceuticals has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IOL Chemicals And Pharmaceuticals' Net-Net Working Capital compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, IOL Chemicals And Pharmaceuticals ranks #379 out of 416 companies for Net-Net Working Capital. This places IOL Chemicals And Pharmaceuticals in the lower half of its industry. The industry median Net-Net Working Capital is 7.76. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Drug Manufacturers company?
The median Net-Net Working Capital among Drug Manufacturers companies is 7.76, based on 416 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on IOL Chemicals And Pharmaceuticals For the Drug Manufacturers industry, the median Net-Net Working Capital is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IOL Chemicals And Pharmaceuticals's current Net-Net Working Capital is ₹2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IOL Chemicals And Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, IOL Chemicals And Pharmaceuticals (NSE:IOLCP) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹94.22, compared to a current price of ₹171.06 — trading 81.6% above its estimated fair value. The current Net-Net Working Capital is ₹2.00. IOL Chemicals And Pharmaceuticals' overall GF Score™ is 57/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For IOL Chemicals And Pharmaceuticals (NSE:IOLCP), the current Net-Net Working Capital is ₹2.00 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is IOL Chemicals And Pharmaceuticals (NSE:IOLCP) Overvalued in 2026?
Based on GuruFocus' analysis, IOL Chemicals And Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹171.06 is trading 81.6% above its estimated GF Value™ of ₹94.22.
GuruFocus considers IOL Chemicals And Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for NSE:IOLCP:
Net-Net Working Capital: ₹2.00
GF Value™: ₹94.22 vs. price of ₹171.06 (81.6% above fair value)
No single metric tells the full story. See the NSE:IOLCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IOL Chemicals And Pharmaceuticals Business Description
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.
57GF Score
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