Anand Rathi is bullish on Nocil has recommended buy rating on the stock with a target price of Rs 210 in its research report dated January 02, 2019.
Anand Rathi 's research report on Nocil
Capacity expansions of tyre companies (demand side) and the doubling of Nocil’s production capacity (supply side) should keep volume growth steady for the company. However, auto sector sales would determine OEM demand and, growth in the logistics sector, the tyre replacement market, and in turn utilisation of tyre-companies’ new capex. This would govern realisations of rubber chemicals. Potential growth in this jamboree of binary events keeps us cautiously optimistic about Nocil.
Nevertheless, we initiate coverage on it, with a Buy rating, for a target price of `210.
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