NOCIL: Potential for delivering good returns for 1-2 years from chemical sector

NOCIL Ltd:

Sector-Specialty Chemicals

Market Cap.: 2,315.24 Cr.

Stock P/E: 19.95

Price performance:

Technical trend shows UP.

Sales and profit growth performance:

Business Outlook:

1. The board of NOCIL has approved capacity expansion of Navi Mumbai & Dahej facilities. The company’s capital expenditure envisaged for expansion is approximately Rs 170 crore. Its expansion project is likely to be commissioned by end of Q2FY19.
2. NOCIL’s capital expenditure will be financed largely through internal accruals. The company’s Dahej plant is a zero-wastage plant, resulting in significant cost reduction. It has strong pipeline of new generation rubber chemicals.
3. International Rubber Study Group welcomed NOCIL, the largest chemical producer in India, welcomed into the group in April 2017.

Risk side:

1. It has already up 95% in last 6 months and close to 160% in last 1 year.
2. The company has delivered a poor growth of 9.04% over past five years

Happy Investing !