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    Buy NOCIL, target price Rs 310: HDFC Securities

    Synopsis

    NOCIL, incorporated in the year 1961, is a Small Cap company (having a market cap of Rs 4180.17 crore) operating in Chemicals sector.

    Buy NOCIL, target price Rs 310: HDFC SecuritiesiStock
    HDFC Securities has buy call on NOCIL with a target price of Rs 310. The current market price of NOCIL is Rs 250.1.

    NOCIL, incorporated in the year 1961, is a Small Cap company (having a market cap of Rs 4180.17 crore) operating in Chemicals sector.

    NOCIL key Products/Revenue Segments include Other Operating Revenue, Duty Drawback and Scrap for the year ending 31-Mar-2021.

    Financials
    For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 463.95 crore, up 19.14% from last quarter Total Income of Rs 389.40 crore and up 43.05% from last year same quarter Total Income of Rs 324.33 crore. Company has reported net profit after tax of Rs 68.92 crore in latest quarter.

    Investment Rationale
    The brokerage said its BUY recommendation on NOCIL with a target price of Rs 310 is premised on (1) ramp-up in capacity utilisation; (2) robust volume growth on the back of pick-up in demand in the tyre industry; and (3) expansion of margin with focus on specialised rubber chemicals. Q4 EBITDA/PAT were 135/132% above its estimates, owing to 23% higher revenue, lower-than-expected raw material cost courtesy inventory gains, and lower-than-anticipated opex, but were offset by higher-than-expected depreciation and tax outgo.

    Promoter/FII Holdings
    Promoters held 33.85 per cent stake in the company as of 31-Mar-2022, while FIIs owned 2.54 per cent, DIIs 4.27 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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