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Nocil Ltd - Stock Valuation and Financial Performance

BSE: 500730 | NSE: NOCIL | Chemicals | Small Cap

NOCIL Share Price

194.10 -0.25 -0.13%
as on 18-Jul'25 16:59

Nocil Ltd - Stock Valuation and Financial Performance

BSE: 500730 | NSE: NOCIL | Chemicals | Small Cap

DeciZen - make an informed investing decision on NOCIL

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Nocil stock performance -

mw4me loader
P/E Ratio (CD):
31.52
Market Cap:
3,242 Cr.
52-wk low:
155
52-wk high:
336.1

Is Nocil Ltd an attractive stock to invest in?

1. Is Nocil Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Nocil Ltd is a average quality company.

2. Is Nocil Ltd undervalued or overvalued?

The key valuation ratios of Nocil Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Nocil Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Nocil Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of NOCIL:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Nocil Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % 24%20.8%25.9%25.1%13.1%8.8%17.7%13.6%11.2%6.7%-
Value Creation
Index
0.70.50.90.8-0.1-0.40.30.0-0.2-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 7157429681,0438469251,5711,6171,4451,3931,393
Sales YoY Gr.-3.8%30.4%7.8%-18.9%9.3%69.9%2.9%-10.6%-3.6%-
Adj EPS 4.95.910.411.47.85.410.697.26.16.2
YoY Gr.-21%75.9%8.9%-31.1%-31.7%98.3%-15.2%-20.4%-15.4%-
BVPS (₹) 29.255.763.470.171.27786.592.8101.5105105
Adj Net
Profit
78.89717218813088.9177150119101103
Cash Flow from Ops. 17014210216417993.6-30.228220125.6-
Debt/CF from Ops. 0.20.10.10000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.7%10.5%-3.9%-3.6%
Adj EPS 2.4%-5%-17%-15.4%
BVPS15.3%8.1%6.7%3.4%
Share Price 13.7% 13.1% -11.4% -33.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity %
17.81417.517117.212.9107.35.95.9
Op. Profit
Mgn %
19.621.527.828.521.114.218.315.713.5109.8
Net Profit
Mgn %
1113.117.71815.39.611.29.38.37.37.4
Debt to
Equity
0.10000000000
Working Cap
Days
201161141163195188160173167180123
Cash Conv.
Cycle
1038492107118113110126123129102

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 5.90%

Sales growth has been subdued in last 3 years -3.94%

Net Profit has been subdued in last 3 years -17.03%

Sales growth is not so good in last 4 quarters at -3.53%

Latest Financials - Nocil Ltd.

Standalone Consolidated
TTM EPS (₹) 6.4 6.2
TTM Sales (₹ Cr.) 1,393 1,393
BVPS (₹.) 104.5 105
Reserves (₹ Cr.) 1,578 1,587
P/BV 1.86 1.85
PE 30.14 31.52
From the Market
52 Week Low / High (₹) 155.00 / 336.10
All Time Low / High (₹) 4.90 / 3500.00
Market Cap (₹ Cr.) 3,242
Equity (₹ Cr.) 167
Face Value (₹) 10
Industry PE 57

Management X-Ray of NOCIL:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *11.2010.4310.4310.069.6913.118.547.006.8210.33
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Nocil: Q2FY24 result update - 04 Nov 2023

                                                                        

Particulars

Q2FY24 (Rs. Crs)

YoY Trend

Comments

Revenue

351

-10%

Revenues hit as realization declined sharply albeit volumes grew
EBITDA

45

-27%

 
EBITDA Margin

13%

- 300bps

Negative operating leverage 
PAT

27

-24%

 

Muted results on recessionary pressure in export market, domestic volumes were flat QoQ. 

NOCIL: Q1FY24 Result Update - 07 Aug 2023

Particulars

Q1FY24

YoY Trend

Comments

Revenue

397

-22%

High base quarter effect; flat QoQ

EBITDA

55

-46%

 

EBITDA Margin

14%

-638 bps

Decline YoY due to negative operating leverage; margin flat QoQ

PAT

34

-48%

 

 Poor quarterly performance on pricing pressure due to Chinese exports and global recessionary environment.

 

Nocil: Q2FY23 Result Update - 15 Nov 2022

Market Cap = INR 3,758 cr

CMP =   Rs 226

P/E = 18.7 X TTM

Results

INR Crore

YoY Growth

Comments

Revenue

389

4.85%

Sales volume impacted due to global recession as exports constitute a major chunk of revenues.

EBITDA

62

21.57%

EBITDA growth in double digits due to low base in the previous year due to COVID led restrictions

 

Click here for 10 year X-ray

 

Key Highlights:-

  • Price hike taken proportionate to increase in raw material prices.
  • Due to decrease in local Chinese demand, there is a glut of Chinese products in the international market which has put downward pressure on prices.
  • Export as a % of revenue stayed below 30%.
  • Volatility in raw material prices continues to be an issue.
  • Current capacity utilization ~ 70%.

 

Management Outlook:-

  • Based on global recessionary trends, demand is expected to stay muted.
  • Debottlenecking to give sufficient capacity expansion for the next 2-3 years, so focus will remain on debottlenecking and increasing the efficiency rather than new capex.
  • Demand is slowing down, and the slowdown in demand is accelerating.

 

Booster Stock: NOCIL: Quarterly Result update - 31 May 2021

NOCIL | Market Cap: 3360 Cr

CMP Rs. 202 | P/E 17x FY23;

Recommendation | Hold

Results: NOCIL reported 51% growth in sales and 37% growth in operating profit year on year. For the entire year, sales growth was 9% while volume growth was 14%. 

Check 10 year X-ray here

Key highlights: 

  • NOCIL reported sales growth backed by strong volume growth but at lower realization. This led to fall in gross margin in FY21 to 45.4% from 54.2% in FY20. 
  • NOCIL export volumes were 33% of overall sales. 
  • Operating profit growth was higher than gross profits from favourable operating leverage. i.e. fixed cost remain same as gross profit increases.
  • NOCIL is debt free and carries Rs. 120 Cr cash and cash equivalents on balance sheet.

Outlook: As per the management, the competition is high but demand recovery is very strong. While the realization were lower, the growth in volume compensated for the same. NOCIL is experiencing good growth from customers as they look to diversify away from Chinese supply. China is the largest producer of rubber chemicals, small loss of market share by China can help non-Chinese players to gain market share. This bodes well for growth. The management expects full utilization of capacities by mid FY24.

MoneyWorks4me Opinion: We had recommended BUY on NOCIL at 145/share. We expect bright prospects for NOCIL from capacity addition, demand from customers as they look to diversify away from China, recovery in auto sector, etc. Attractive business prospects and reasonable valuation made us recommend a BUY. Valuations are not excessive but certainly do not offer margin of safety for fresh buy.

NOCIL- A niche play in Specialty Chemicals Industry - 28 Dec 2020

NOCIL Ltd | Market Cap Rs 2400 Cr

CMP 143 | PE 16x FY22

Recommendation | BUY

About the company

NOCIL –Arvind Mafatlal Company –is Rs. 1000 Cr rubber chemicals manufacturer. The company’s products find application used in both tyre and non-tyre industries (latex industry, footwear and other auto-ancillary products). The bulk (~65%) of rubber chemicals are sold to the tyre industry, domestic and international.

Industry: The Indian tyre industry size is estimated at ~Rs. 60,000 Cr (as of FY18); with demand largely coming from two segments i.e. original equipment manufacturers (OEM ~35-40% of demand) and replacement market (aftermarket ~60-65%).

Chemicals manufactured by the company are essential in the production of rubber and rubber-related products. As a thumb rule rubber chemical constitutes about 3.5% to 4% of the total rubber consumption. Its growth is dependent on increase in usage of rubber.

The company manufactures intermediates as well as a wide range of final products across two manufacturing facilities in Navi Mumbai and Dahej.

Company products include: –

  • Accelerators
  • Antidegradants
  • Antioxidants
  • Pre-Vulcanization Inhibitor
  • Post-Vulcanization Stabilizer

Management

NOCIL is the flagship company of the Arvind Mafatlal group. As of June 2020, the promoters held ~34% stake in the company and the remaining stake was held by public and other institutions. Mafatlal Industries, Navin Flourine and Mafatlal Denim are its sister companies.

Business of NOCIL

NOCIL has a leading market position in the rubber chemicals industry in India (with ~40% market share) and has an established clientele. The company primarily manufactures 4 categories of products namely, Accelerators, Anti-degradants/anti-oxidants, Pre-vulcanisation inhibitors and Post-vulcanisation stabilisers. Dominant portion of the revenues of the company comes from India.

NOCIL is among the few players globally with a wide product basket of 22 rubber chemicals. Furthermore, it has been able to maintain healthy relationships with major domestic and global tyre manufacturers for over 40 years, and hence has a good international presence.

Driven by strong R&D capabilities, the company has developed a process for producing a key intermediate, and has also set up and stabilised a green field production facility in Dahej.

NOCIL competes with Chinese rubber chemical manufacturers who have high scale and cost advantage. However, with recent operational efficiency improvement NOCIL has been able to improve its cost structure. The business is very competitive and NOCIL commands market share of 10% globally.

Financials

NOCIL sales has more than doubled from 2011 to 2019 and fell 20% in FY20 due to slowdown in auto industry. It clocked 14.3% CAGR in earnings growth in last 10 years.

The company has seen decline in its operating margins lately owing to de-growth in the auto sector. NOCIL exhibits cyclicality from auto sector as well as competitive environment.

In recent past, operating margins came off due to cessation of anti-dumping duty (ADD) from August 2019. The anti-dumping duty was present on 6 (out of 22) of its products contributing 50% to overall revenues (as of FY19).

Click here to view complete financials of NOCIL

NOCIL is debt-free despite of regularly increasing its capacity since 2013. The fixed asset of the company has grown ~5.6x in last 10 years. Recently it completed its ongoing capacity expansion programme (of Rs 450 crore), it will fully capitalised by financial year end. No major capex is expected over the medium term. This will lead to higher dividend payout ratio in medium term.

Future Prospects

  1. China Plus One: NOCIL coincidently has commissioned almost 100% additional capacity to 1,10,000 tonne (total 10% of global capacity), at a time when global clients are diversifying their vendor base away from Chinese chemical manufacturers. China accounts for about 75% of world’s rubber chemical production, it only consumes about 35% of the rubber chemicals. China plus one strategy will help NOCIL to gain market share in global supply chain of rubber chemicals. Increase in market share in rubber chemicals will be a key driver for growth. Typically for approval from any global tire customers, it takes 18 to 24 months for commercial supplies proposed to be undertaken by any new manufacturer. NOCIL is an existing supplier to Bridgestone and Michelin.
  2. Atmanirbhar Bharat: Furthermore, with restricted tyre imports, domestic tyre manufacturers are expected to operate at higher rate, thereby increasing domestic demand for tyres and hence NOCIL. NOCIL will also benefit as Indian tyre manufacturers will adopt (ii) Atmanirbhar policy to avoid imported rubber chemicals. NOCIL controls only 40% market share in domestic market while rest comes from US, China and Korea.
  3. Anti-dumping duty: Recently on NOCIL’s claim, the government has started an investigation into dumping by Chinese and Korean players in a product called PX-13. If they find merit in claim, they may implement anti-dumping duty on select products which bodes well for NOCIL’s profit margin. NOCIL management expects that the pricing pressure is behind us and future growth will come from volume growth at similar margins.

Positive triggers

  • Benefit from China plus One strategy
  • Debt-free Balance Sheet
  • Ramping up new capacities and change in product mix to aide sales and profit growth.

Risks

  • Commoditized nature of business can face pricing pressure
  • Competition from Chinese & Korean players
  • Cancellation of Anti-Dumping duty on one key product

Valuation

At current sales expectation of Rs. 850 Cr, it trades at 14x EV/EBITDA and 20x P/E ratio.

Assuming 2x asset turnover in new capacities, it can earn around additional sales of Rs. 400 Cr over next 2 years. With expectation of atleast 12% CAGR in sales and 18% in operating margin, implied P/E ratio is 16x FY22. We have assumed operating margins of 18% instead of 22-26% in recent past due to absence of anti-dumping duty.

We recommend BUY in the range of 140-150/share which implies 10-15% CAGR over next 3 years.

While the future potential is large, the execution, competition and regulation can lead to lower than expected performance and hence disappointment. If we find such risks that outweigh future prospects, we will recommend to exit NOCIL even at a small loss. 

Note for Booster Stocks: These stocks are more volatile that large cap stocks. They are recommended to enhance your portfolio returns. Should any new information lead us to conclude that the recommended stock may not deliver as per expectations; we will recommend you to sell it. You are expected to act/exit even at a loss. You need to think portfolio returns and not individual stocks.

Key Ratios of NOCIL

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales7157429681,0438469251,5711,6171,4451,393
Operating Expenses 5765837027506687941,2851,3641,2501,255
Manufacturing Costs10099120135129137228273234237
Material Costs360360441467388505859888815798
Employee Cost 61647171777081879295
Other Costs 566170787482117116108126
Operating Profit 139159265293178131286253195137
Operating Profit Margin (%) 19.5%21.5%27.4%28.1%21.1%14.1%18.2%15.6%13.5%9.9%
Other Income 4101510915463932
Interest 9211111122
Depreciation 15202424343748565354
Exceptional Items 0000000000
Profit Before Tax 119147255278152107241202180114
Tax 41508593221965534711
Profit After Tax 789717018513188176149133103
PAT Margin (%) 10.9%13.1%17.6%17.7%15.4%9.6%11.2%9.2%9.2%7.4%
Adjusted EPS (₹)4.95.910.311.27.95.310.69.08.06.2
Dividend Payout Ratio (%)25%30%24%22%32%38%28%34%38%32%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund 4709101,0431,1591,1791,2791,4401,5461,6921,754
Share Capital 161164164165166166167167167167
Reserves 3097478799931,0141,1131,2741,3801,5251,587
Minority Interest0000000000
Debt16500000000
Long Term Debt15500000000
Short Term Debt1000000000
Trade Payables73811169889170215127118118
Others Liabilities 200164172185173165175183205185
Total Liabilities 7591,1611,3311,4421,4421,6151,8311,8572,0152,057

Fixed Assets

Gross Block4597087018541,0281,1831,2211,2531,2821,321
Accumulated Depreciation153166174197231266312365413466
Net Fixed Assets307542527657797917909887869855
CWIP 644213115614891660
Investments 22176281130546853218399366
Inventories133115155171136166333285223281
Trade Receivables151167243232203309450346340310
Cash Equivalents 151223240148016579633
Others Assets1243550828160615472151
Total Assets 7591,1611,3311,4421,4421,6151,8311,8572,0152,057

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity 17014210216417994-3028220126
PBT 119147255278152107241202180114
Adjustment 20131716262545511326
Changes in Working Capital 6228-88-4252-38-2568048-80
Tax Paid -31-46-81-88-510-60-51-40-34
Cash Flow From Investing Activity -12-10-142-101-106-6231-217-77-37
Capex -14-13-47-237-180-27-36-29-17-121
Net Investments 00000000-7362
Others 23-9413673-3667-1871322
Cash Flow From Financing Activity -151-31-43-50-1010-34-54-55-50
Net Proceeds from Shares 0645143105
Net Proceeds from Borrowing -47-11-10-5000000
Interest Paid -10-2-1-1-1-1-1-1-2-2
Dividend Paid -16-23-35-50-98-1-33-50-50-50
Others -78000-2-2-2-4-4-3
Net Cash Flow 7102-8213-2832-331168-62
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)17.6914.0717.416.7911.187.1912.959.998.215.97
ROCE (%)24.0420.8425.8525.1413.098.7517.7113.5611.176.7
Asset Turnover Ratio1.010.850.790.750.590.60.910.880.750.68
PAT to CFO Conversion(x)2.181.460.60.891.371.07-0.171.891.510.25
Working Capital Days
Receivable Days747176839410188908785
Inventory Days74555057666058706466
Payable Days65625354717258534236

Nocil Ltd Stock News

Nocil Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of NOCIL on 18-Jul-2025 16:59 is ₹194.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-Jul-2025 16:59 the market cap of NOCIL stood at ₹3,242.
The latest P/E ratio of NOCIL as of 18-Jul-2025 16:59 is 30.14.
The latest P/B ratio of NOCIL as of 18-Jul-2025 16:59 is 1.86.
The 52-week high of NOCIL is ₹336.1 and the 52-week low is ₹155.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of NOCIL is ₹1,393 ( Cr.) .

About Nocil Ltd

NOCIL Limited (formerly known as National Organic Chemical Industries) is a limited company incorporated on May 11, 1961, and is engaged in manufacture of rubber chemicals domiciled in India. The Company has manufacturing facilities at Navi Mumbai (Maharashtra) and at Dahej (Gujarat). The products manufactured by the Company are used by the tyre industry and other rubber processing industries.

Business area of the company

NOCIL’s involvement in the Rubber chemicals business spans over 4 decades. The company is one of the few players in this business to offer wide range of rubber chemicals to suit the customer needs. Due to rich experience and offering a one stop shop to customers, NOCIL is today acknowledged as a dependable supplier of rubber chemicals. NOCIL today is the Largest Rubber Chemicals Manufacturer in India with the State of the Art Technology for the manufacture of rubber chemicals.

Products

  • Rubber Chemicals
  • Antidegradants / Antioxidants
  • Accelerators
  • Pre Vulcanization Inhibitor
  • Post Vulcanization Stabilizer

Certifications

  • ISO 9001:2008
  • ISO 14001:2004
  • BS OHSAS 18001:2007
  • ISO/IEC 17025:2005
  • ISO/TS 16949:2009
  • IATF
  • NABL
  • Responsible Care by the Indian Chemical Council
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