On Wednesday, the share price of Indorama Ventures Public Company Limited (SET: IVL) at the time of 3:11 p.m. was at THB 28.50, a THB 0.75 or 2.7% increase with a total trading value of THB 569.6 million.
Krungsri Securities projects a continuous recovery trend for IVL, selecting it as one of the analyst’s top stock picks for investment in the fourth quarter of 2026 under the NTM re-rating theme.
This outlook follows the PET industry’s entry into a recovery cycle, driven by the gradual closure and restructuring of high-cost petrochemical plants globally alongside limited new capacity additions, which helped ease oversupply pressures and support integrated PET spreads as well as IVL’s profit margins over the medium to long term.
Meanwhile, IVL’s operations are showing positive signs across all business segments, particularly Indovinya and Fibers, which are demonstrating improved pricing flexibility. Although the business restructuring of its EO/EG operations in the United States will incur higher expenses in the short term, it is expected to reduce costs and enhance return on assets in the long term.
Additionally, IVL stands to benefit from Super El Niño conditions, as dry weather is likely to weigh on cotton output and drive cotton prices higher. This trend could prompt textile manufacturers to substitute toward polyester fibers, generating positive momentum for demand across IVL’s Fibers and PET products in terms of both sales volumes and capacity utilization rates.
Krungsri forecasts that IVL’s financial performance will turn around from losses to consistent profitability over the 2026-2028 period. Core profit for 2026 is estimated at approximately THB 6,232 million, before rising to THB 8,436 million in 2027 and THB 9,841 million in 2028. Meanwhile, net profit for 2026 is projected at approximately THB 7,882 million, reversing from a net loss of THB 7,348 million in 2025.
Regarding valuation, Krungsri noted that IVL continues to trade at a forward price-to-book (P/BV) ratio of around 1.3 times, which is below its long-term average. This indicates potential for a stock valuation re-rating in line with the recovery in corporate earnings and industry fundamentals. The brokerage maintains a “Buy” recommendation with a 2027 target price of THB 28 per share.
