Brokerage and research firm Axis Securities said OEM manufacturers are seeing the highest ever volume figures in the domestic market, driving demand for new tires in both PV and commercial vehicles and strong replacement demand in the domestic tire industry as well. is being viewed.
“This demand has led to the highest ever consumption of rubber (natural and synthetic) globally at 29.7 MMT. This translates to an increase in the demand for rubber chemicals produced by the company, which typically account for 3.5% of the total rubber consumption,” the note said.
NOCIL has made a shift in the product mix with an inclination towards specialty chemicals (25% of total Q1FY23 revenue) and an increase in export share to 36% of total revenue. This will improve the margin profile of the companies, highlighted Axis Securities.
Sharing this as its top stock pick of the week, the brokerage house recommends a Buy rating on the shares of Nosil with a near-term target price. 275 chemical stock Up about 12% so far in 2022 (YTD).
“With increasing levels of specialty chemicals and a favorable movement in prices to overcome rising raw material costs with a gap of three months and increase in volume levels on an absolute basis, we expect operations in the coming quarter Profit will improve and return ratio will improve.” added this.
NOCIL Ltd is engaged in manufacturing of rubber chemicals which are used by tire industry and other rubber processing industries. The company is the largest rubber chemicals manufacturer in India with state-of-the-art technology for manufacturing rubber chemicals.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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