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Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Hold NOCIL; target of Rs 121: East India Securities

East India Securities recommended hold rating on NOCIL with a target price of Rs 121 in its research report dated August 21, 2020.

August 26, 2020 / 06:24 PM IST

East India Securitie's report on NOCIL


Key takeaways from NOCIL Annual Report FY20 are as follows. NOCIL - (a) is a preferred supplier across the globe to major tyre OEMS’s having long term relationship (b) has an extensive product basket with presence across entire range of rubber chemicals and strong position in high value added products (c) focuses on specialized products in exports to cater to global needs and (d) has a strong focus on R&D to deliver new generation niche products. We believe the growth triggers are set in place led by (a) doubling of capacity to 1,10,000 TPA to lead future volume growth (b) rubber chemical prices after witnessing 10 year low in June 2020 are set to rebound backed by favorable demand and supply and (c) tyre sector performance to gradually improve led by uptick in replacement demand and likely rebound in OEM sales owing to decline in Chinese Truck & Bus Radial (TBR) imports.


Outlook


We believe the current valuations are discounting rebound in profits. Considering the future growth visibility of this net cash company with strong dividend payout history, we assign HOLD rating with target price of INR 121 per share.


For all recommendations report, click here


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Broker Research
first published: Aug 24, 2020 09:53 pm
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