Oriental Carbon Chemicals Ltd Initiating Coverage Report By IndiaNivesh

OCCL is the third largest player in insoluble sulfur manufacturing after Solutia Inc, USA a subsidiary of Eastman Chemicals, USA and Shikoku Chemicals Corporation, Japan. The current market share of OCCL across the globe is 9% and 60% in Indian market. We believe the company will be beneficiary of the rising demand of Radialized Tyres especially from the Commercial Vehicles segment in India. In addition capacity expansion along with entry in North American market along with adding new larger clients is another catalyst for the stock. We initiate coverage on OCCL and recommend a BUY on the stock with target price of Rs 700.