Moneycontrol
Get App
Last Updated : May 14, 2019 05:08 PM IST | Source: Moneycontrol.com

Buy NOCIL; target of Rs 221: Prabhudas Lilladher

Prabhudas Lilladher is bullish on NOCIL has recommended buy rating on the stock with a target price of Rs 221 in its research report dated May 13, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on NOCIL


We cut our FY20/21E earnings estimates by ~11-12% to factor weakness in global tyre market as we moderate our volume and realisation assumptions. However, with capacities doubling by H2FY20 Nocil is well poised to benefit from tight demand-supply situation in global rubber chemicals market. High global tyre capex along with increased domestic capex augurs well for Nocil, even though near term weakness in domestic and China auto sales (Q1CY19 auto sales were down 13.7%Y/Y) will be a drag.


Outlook


Reiterate BUY with a revised PT of Rs221 (Rs252 earlier) based on 15x PER FY21E or 8x EV/EBIDTA FY21E.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
First Published on May 14, 2019 05:08 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant