Accumulate Chemicals Stock As Management Eyes Volume Recovery: Prabhudas Lilladher

Prabhudas Lilladher is bullish on small cap stock operating in Chemicals Sector, NOCIL and recommended investors to accumulate with target price of Rs 240 apiece. Current market price of NOCIL is Rs 207.85 apiece with intraday rally of 0.51%. If you accumulate NOCIL share, you can get potential return of 16%. Check
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NOCIL Stock Outlook & Return: Last trading price of NOCIL is Rs 207.85 apiece on BSE. Its 52-week high price is Rs 294.85 apiece and 52-week low price is Rs 201.45 apiece, respectively. Its market capitalisation is Rs 3,463.67 crore. It fell 12% in last 3-months, 25% in last 6-months, and gave a return 156% in last 3-years.

NOCIL Valuation: According to Prabhudas Lilladher, "We slightly tweak our estimates to factor spreads normalization and maintain 'Accumulate' rating with revised TP of Rs 240 (earlier Rs250) at 18x FY25E EPS of Rs13.5."

We remain constructive on NOCIL post our visit to its Dahej (Gujarat) site spread over 50 acres, that houses various rubber chemicals manufacturing plants. Management indicated gradual recovery in volume across markets (worst possibly behind in Q3FY23) and improvement in capacity utilization from hereon (currently at ~65%).

NOCIL About: NOCIL Limited is a part of the AMG (Arvind Mafatlal Group) of Industries, a well-known Business House of India having diversified business interests. NOCIL commenced Rubber Chemicals production in the year 1975. Situated in a designated 'Chemicals Zone' about 40 km away from Mumbai City; NOCIL today is the Largest Rubber Chemicals Manufacturer in India, according to its official website.