Chemical Stock Declares Rs 7/Share Interim Dividend, FIIs Stake Up In Q2; Buy?

In Friday's closing session, Oriental Carbon & Chemicals Ltd., a small-cap chemical firm, had a market worth of Rs 737.62 Cr. Oriental Carbon & Chemicals Limited is an entity of the JP Goenka Group of Companies, having been established in 1978. The company has been producing insoluble sulphur for more than 25 years.

Oriental Carbon & Chemicals Dividend

The Board of Directors "declared an interim dividend of Rs.7/- per equity share of face value of Re.10/- each for the financial year ending 31st March 2024 and fixed the Record date for the purpose of determining the entitlement of the shareholders for the interim dividend as November 07, 2023, and dividend will be paid to the shareholders on or from November 16, 2023," said Oriental Carbon & Chemicals in a stock exchange filing.

Oriental Carbon & Chemicals Q2 Results

On a standalone basis, the company reported net sales of Rs 95.09 crore in the September 2023 quarter down 22.16% from Rs. 122.16 crore in the September 2022 quarter. Its net profit climbed 7.46% from Rs. 7.77 crore in Q2FY23 to Rs. 8.35 crore in Q2FY24. EBITDA increased 8.29% from Rs. 20.02 crore in the year-ago quarter to Rs. 21.68 crore in the quarter under review.

On a consolidated basis, it reported net sales of Rs 111.43 crore in the September 2023 quarter down 20.92% from Rs. 140.91 crore in the September 2022 quarter. After reaching Rs. 9.43 crore in Q2FY23, its net profit dropped to Rs. 8.96 crore in Q2FY24, a 4.91% fall. EBITDA plunged by 3.33% from Rs. 24.95 crore in the corresponding quarter of the previous fiscal to Rs. 24.12 crore in Q2FY24.

Oriental Carbon & Chemicals Share Price Target

Deven Mehata-Equity Research analyst at Choice Broking said, "The stock OCCL is currently trading at approximately 745, and it appears to have a robust support zone in the range of 710-720 levels. This support range is crucial because, if breached, it could signal further downward movement in the stock's price. Notably, the stock recently rebounded from this support zone, which is a positive development and suggests some potential upward momentum."

"The next significant resistance level for OCCL is around 795, which is close to its 20-day and 200-day Exponential Moving Averages (EMA). A more substantial resistance is encountered at 830 levels. A sustained move above this resistance level could indicate a change in the stock's trend. Additionally, the Relative Strength Index (RSI), a momentum indicator, has rebounded from oversold levels and is currently trading around 32, which may indicate a potential upward shift in momentum," he stated.

"For existing investors who bought the stock at lower levels, it's advised to hold with a trailing stop loss at 710, which coincides with the support level. However, for new investments, it might be prudent to wait for a confirmed reversal in the stock's trend before considering entry points," Deven Mehata claimed.

Oriental Carbon & Chemicals Shareholding Pattern

In Q2FY24, the firm disclosed that 51.76% of its shares were held by promoters, 0.74% by FIIs, 11.75% by DIIs, and 35.74% by the public. Promoters' stake in the company was steady at 51.76% as of the September 2023 quarter. FII/FPI investors' holdings grew from 0.69% in the June 2023 quarter to 0.74% in the September 2023 quarter. The number of FII/FPI investors dropped from 31 in the Q1FY24 to 30 in the Q2FY24. Mutual funds' holdings dropped from 10.41% to 9.32%, while institutional investors' holdings dropped from 13.53% in Q1FY24 to 12.49% in Q2FY24, as per the data of Trendlyne.

Disclaimer

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