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Last Updated : Jul 20, 2015 03:37 PM IST | Source: Moneycontrol.com

Accumulate NOCIL for long term, says Way2Wealth

Way2Wealth is bullish on NOCIL and has recommended investors to accumulate the stock for the long term, in its research report dated July 20, 2015.

 
 
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Way2Wealth's special report on NOCIL

NOCIL is the largest rubber chemicals manufacturer in India with a total capacity of 55,000 tones (including Dahej 15,000 tones) with current capacity utilization of 80%. Their manufacturing facilities are located at Navi Mumbai and Dahej. Major customers of the company are tyre companies like Apollo Tyres, Ceat Ltd., MRF Ltd. etc and other rubber products manufacturer.


VALUATIONS:
NOCIL, the largest rubber chemical manufacturer in India with its diversified product portfolio and strong R&D capabilities is in the position to take advantage of global consolidation in the rubber chemical space. With major tyre companies consolidating their operation in and around Asia which is the major growth market, NOCIL is expected to benefit.


"The Company has all the environment compliance in place which is the key problem faced by the Chinese counterparts, placing NOCIL at an advantage. Also with the anti-dumping duty protection in place and ramp up in its Dahej plant, financials are set to improve. At the CMP of Rs 53.3, the stock is trading at a P/E of 11.8x its FY16E EPS of Rs 4.53. We recommend investors to ‘ACCUMULATE’ for the long term", says Way2Wealth research report.

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First Published on Jul 20, 2015 03:37 pm
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