Oriental Carbon & Chemicals Nano Nivesh Research Report By ICICI-Direct
| Oriental Carbon & Chemicals Nano Nivesh Research Report By ICICI-Direct | |
| Company: | Oriental Carbon Chemicals Ltd |
| Brokerage: | ICICI-Direct |
| Date of report: | October 24, 2016 |
| Type of Report: | Initiating Coverage |
| Recommendation: | Buy |
| Upside Potential: | 32% |
| Summary: | “Speciality chemical” company in true sense; warrants re-rating |
| Full Report: | Click here to download the file in pdf format |
| Tags: | ICICI-Direct, Nano Nivesh, Oriental Carbon Chemicals |
| Oriental Carbon & Chemicals (OCCL) is a specialty chemical company manufacturing insoluble sulphur, a critical vulcanisation agent for manufacturing tyres. With limited competition and a unique product profile, OCCL has a strong presence in the domestic (~50% market share) as well as export markets. With the commissioning of the brownfield facility in early FY18E, we expect OCCL to report sales & PAT CAGR of 15.2% & 17.4%, respectively, in FY17E-19E. It is quoting at inexpensive valuation of 12.4x P/E on FY18E EPS of Rs. 56.4. |
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