NOCIL Ltd. share price target

We recommend a BUY rating on the stock with a near term TP of Rs 283, implying an upside of 10% from CMP.

BUY with a revised TP of Rs 327/share (previously Rs 300/share) valuing it at 16.9x FY24E EPS.

NOCIL reported a beat on our EBITDA estimate (at INR36/kg, +16% QoQ), with an improvement in realization (to INR282/kg, +3% QoQ). Raw material costs in 3QFY22 were higher due to a sharp increase in commodity chemical prices. Volumes fell 6% YoY, but were flat QoQ at 13.8kmt. The management's focus will be on growing its volumes, which it has been successfully doing so. We expect volumes sold to rise by over 10% YoY, with revenue growth of a minimum 45% YoY in FY22. There is ongoing ADD investigation on three of NOCIL's products, even though...

Aniline is primarily used as a feedstock for producing Methylene Diphenyl Diisocyanate (MDI). By end-user market, it is primarily used in the Building and Construction space (constitutes 55% of the total consumption), followed by Auto (16%), rubber chemicals (11%), and Consumer Goods (10%). MDI prices continue to witness an uptrend in the North American market, backed by consistent demand from the Housing sector, downstream plasticizers, and insulator. The number of houses authorized for construction, but not yet started, touched a 15-year high in Oct'21 due to a shortage of...

Maintain BUY with a revised TP of Rs 300/share (previously Rs 315/share) valuing it at 20x FY24E EPS.

We maintain our BUY recommendation with a TP of Rs 315 valuing it at 20x FY24E EPS.

NOCIL Limited, part of the Arvind Mafatlal Group, is the largest rubber chemicals company in India.

We marginally revise our FY22/23 estimates and introduce FY24E. Maintain a BUY with a revised TP of Rs 315/share (previously Rs. 235/share) valuing it at 20x (previously 17x) FY24E EPS.