Nocil: Strengthening the Elasticity

About the Company

 

NOCIL LTD, a part of the Arvind Mafatlal Group is a reputed Business House with diversified business interests. NOCIL is engaged in rubber chemicals business spanning over 4 decades. It is the largest rubber chemicals manufacturer in the country having to its credit state of the art technology for the same .The company’s new manufacturing facility at Dahej in the state of Gujrat  produces well recognised rubber chemicals products for India as well as International markets.

 

Their Brands are

• PILFLEX® Antidegradants,
• PILNOX® Antioxidants,
• PILCURE® Accelerators,
• Post Vulcanization Stabilizer and
• PILGARD® Pre Vulcanization Inhibitor 

 

The products of the company are speciality organic chemicals and the manufacturing process for the same involves complex chemical reactions with associated unit operations. The products are used in tyre industries nationally and the world over. It has developed Quality Assurance approach based on “Zero Defect’ with close monitoring of sourcing raw material, manufacturing and post production.

It has ISO: 9001-2208 & TS 16949 quality systems up to product delivery stage. TS 16949 is a prescribed quality system for automobile industry. NOCIL though being a second stage supplier to automobile industry has been accredited with TS 16949 right from 2013. Quality Assurance Laboratory has been awarded prestigious ISO 17025-2005 accreditation by NABL. The Quality Assurance Laboratory operates 24 hours and is equipped with the latest Analytical Instruments & Equipments and the QA team is manned by Qualified, well experienced & trained staff handling the responsibility of achieving Continuous Quality Improvement Goals.

 

Company’s Mission

• To produce world class Rubber chemicals at most reasonable prices thereby providing customers the best “Value for Money”
• Developing, manufacturing and supplying new generation rubber chemicals which apart from giving value to the customers also reduce environmental issues.
• Providing readymade shop floor technical solutions in the field of rubber compounding.
• Innovating, building and operating chemical plants in the most safe and environment friendly manner.
• Continuously enhancing stakeholder value by optimum utilization of resources.

 

NOCIL’s positioning

Diversified Product Portfolio:

• Rubber Chemicals is a critical input for Rubber application Industry
•   NOCIL is one stop shop for almost all rubber applicable industries providing  large and wide variety of products,
•   One of the most dependable and sought after player in Rubber Chemical

 

Strong R&D

• High Concentration & Continuous R&D initiatives are the key focus
• NOCIL has a strong pipeline of New Generation Rubber Chemicals

 

Asia Hub for Tyre Industry

• Major Tyre companies have started consolidating their operations in & around Asia closer to the Growth Markets
• With established track record, NOCIL will benefit the most from any additional capacities being put up by these tyre Companies in India

Product Testing & Valuation

• Customers take from 6-18 months to give approval for a specific location under specific climatic conditions & same is carried out for various locations globally
• With Product Pipeline and requisite Customer accreditations, NOCIL is a “Supplier of Choice”

 

 

Q4FY16 RESULT UPDATE

• NOCIL Q4 net profit stood at Rs. 22.53 crore as against 20.19 crore (QoQ)
• The total income stood at Rs. 177.65 crore as against Rs. 170.18 Cr (QoQ)
• The total sales stood at Rs. 175.35 crore as against Rs. 168.40 Cr (QoQ)
• EPS stood at 1.40 vs 1.26 QoQ
• The current market cap of the company is Rs. 849.78 crore
• A dividend of 12% i.e rs. 1.20 per Equity Share of Rs. 10 was also recomended by the directors
• The promoters holding in the company stood at 37.61 % while Institutions and Non-Institutions held 2.39 % and 59.99 % respectively

 

 

We expect NOCIL to continue its upside move for a medium term target of Rs.64.

 

Dynamiclevels recommends NOCIL as one of our Multibagger Stocks.

To get more Support and Resistance levels of the share please visit Nocil Share Price Forecast