NOCIL Ltd. share price target

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.

NOCIL reported higher-than-estimated realization (pricing action taken in Apr'21 to offset the increase in input cost), while volumes came in below estimates (as operating activity at the customer was interrupted for 23...

accordingly Nocil expects full utilization by Sept 23. We increase our estimates for FY22/23E by 43.1%/17.7% as we increase our margin assumptions to factor in price hikes and higher margins. The volumes declined 12.8%QoQ, due to disruption at customers' end while realization improved over 20%QoQ. Nocil's growth prospects look promising given 1) strong demand traction in domestic and export markets 2) reduced competitive intensity as Chinese auto demand recovers and 3) likely imposition of Anti-Dumping Duty (ADD). Nocil, with new capacities...

We recommend a BUY with TP of Rs. 265 /share.

On FY23E EPS, the stock trades at 14.7x PE, a discount to its 5 year average (22x PE). We thus raise our target PE multiple to 17x (15x earlier) leading to revised TP of Rs. 235 (Rs. 170 earlier). Maintain BUY.

We increase our estimates for FY22/23E as we increase our volume and realization assumptions. Demand environment improved in domestic and international markets, given strong tyre demand coupled with improving...