Buy Oriental Carbon & Chemicals; target of Rs 1550: ICICI Direct

ICICI Direct is bullish on Oriental Carbon & Chemicals has recommended buy rating on the stock with a target price of Rs 1550 in its research report dated January 16, 2018.

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January 24, 2018 / 11:50 IST

26 Aug, 2025 12:21

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ICICI Direct' research report on Oriental Carbon & Chemicals

Oriental Carbon & Chemicals’ (OCCL) performance in Q2FY18 was a tad below our expectations primarily driven by slower sales volume off take and appreciation of the rupee. OCCL reported net sales of RS152.2 crore in H1FY18, up 4.9% YoY, solely driven by volumes Operational efficiencies have begun to kick in on the expanded production base with H1FY18 EBITDA coming in healthy at RS48.0 crore (up 11.1% YoY) with corresponding EBITDA margins at 31.5%,expanding 170 bps YoY. PAT in H1FY18 came in at RS 27.0 crore

Outlook

We expect sales & PAT to grow at a CAGR of 8.9 % & 15.3 %, respectively, in FY1 8E - 20 E. With certainty of operations & commissioning of new facilities we roll over our valuation to FY 20 E and value OCCL at RS1550 i.e. 20 .0x P/E on FY 20 E EPS of RS 77.5. We maintain our BUY rating on the stock.For all recommendations report, click here

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