BSE:500730

Stock Analysis Report

Executive Summary

NOCIL Limited manufactures and sells rubber chemicals in India.

Snowflake

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has NOCIL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500730's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

500730

-1.5%

IN Chemicals

-0.3%

IN Market


1 Year Return

-36.9%

500730

9.0%

IN Chemicals

3.8%

IN Market

Return vs Industry: 500730 underperformed the Indian Chemicals industry which returned 9% over the past year.

Return vs Market: 500730 underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

500730IndustryMarket
7 Day-1.9%-1.5%-0.3%
30 Day-3.6%-0.1%2.7%
90 Day27.9%8.6%7.6%
1 Year-35.2%-36.9%11.6%9.0%5.9%3.8%
3 Year74.2%64.6%60.5%53.9%35.4%28.4%
5 Year179.4%153.2%116.7%100.5%38.1%25.2%

Price Volatility Vs. Market

How volatile is NOCIL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NOCIL undervalued compared to its fair value and its price relative to the market?

41.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500730 (₹105.95) is trading below our estimate of fair value (₹181.33)

Significantly Below Fair Value: 500730 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500730 is good value based on its PE Ratio (10.4x) compared to the Chemicals industry average (10.7x).

PE vs Market: 500730 is good value based on its PE Ratio (10.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: 500730 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 500730 is overvalued based on its PB Ratio (1.5x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is NOCIL forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500730's forecast earnings growth (12% per year) is above the savings rate (7.6%).

Earnings vs Market: 500730's earnings (12% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: 500730's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500730's revenue (14% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 500730's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500730's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has NOCIL performed over the past 5 years?

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500730 has high quality earnings.

Growing Profit Margin: 500730's current net profit margins (17.9%) are higher than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: 500730's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: 500730's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500730 had negative earnings growth (-4.8%) over the past year, making it difficult to compare to the Chemicals industry average (14.4%).


Return on Equity

High ROE: 500730's Return on Equity (14.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NOCIL's financial position?


Financial Position Analysis

Short Term Liabilities: 500730's short term assets (₹4.8B) exceeds its short term liabilities (₹1.5B)

Long Term Liabilities: 500730's short term assets (4.8B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: 500730 is debt free.

Reducing Debt: 500730 has no debt compared to 5 years ago when its debt to equity ratio was 37.8%.

Debt Coverage: 500730 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 500730 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500730 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 500730's debt is covered by short term assets.


Next Steps

Dividend

What is NOCIL's current dividend yield, its reliability and sustainability?

2.36%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: 500730's dividend (2.36%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: 500730's dividend (2.36%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

Stable Dividend: 500730's dividends per share have been stable in the past 10 years.

Growing Dividend: 500730's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.5%), 500730's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500730's dividends in 3 years are forecast to be well covered by earnings (22.3% payout ratio).


Next Steps

Management

What is the CEO of NOCIL's salary, the management and board of directors tenure and is there insider trading?

10.9yrs

Average board tenure


CEO

Sudhir Deo (64yo)

2.3yrs

Tenure

₹34,634,000

Compensation

Mr. Sudhir Ramchandra Deo has been Managing Director of NOCIL Limited since August 1, 2017. Mr. Deo served as Deputy Managing Director of NOCIL Limited from August 1, 2015 to August 1, 2017. Mr. Deo served ...


CEO Compensation Analysis

Compensation vs Market: Sudhir's total compensation ($USD483.61K) is above average for companies of similar size in the Indian market ($USD280.33K).

Compensation vs Earnings: Sudhir's compensation has been consistent with company performance over the past year.


Board Age and Tenure

10.9yrs

Average Tenure

65yo

Average Age

Experienced Board: 500730's board of directors are seasoned and experienced ( 10.9 years average tenure).


Insider Trading

Insider Buying: 500730 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹2,170,39908 Nov 19
R. Desai
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares20,000
Max Price₹108.52
Sell₹2,850,00027 Sep 19
R. Desai
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares25,000
Max Price₹114.00
Sell₹1,075,00024 Sep 19
C. Nandi
EntityIndividual
Role
Other Key Executive
Vice President of Research & Development
Shares10,000
Max Price₹107.50
Sell₹1,035,00024 Sep 19
C. Nandi
EntityIndividual
Role
Other Key Executive
Vice President of Research & Development
Shares10,000
Max Price₹103.50
Buy₹12,00625 Jun 19
Karuna Trust ,Endowment Arm
EntityCompany
Shares100
Max Price₹120.06
Buy₹12,00125 Jun 19
Radha Raman Trust
EntityCompany
Shares100
Max Price₹120.01
Buy₹11,99625 Jun 19
Narsingha Trust
EntityCompany
Shares100
Max Price₹119.96
Buy₹12,00625 Jun 19
Shrija Trust
EntityCompany
Shares100
Max Price₹120.06
Buy₹11,98925 Jun 19
Gurukripa Trust
EntityCompany
Shares100
Max Price₹119.89
Sell₹1,319,09524 Dec 18
R. Gadgil
EntityIndividual
Role
Head of Marketing
President of Marketing
Shares7,669
Max Price₹172.00
Sell₹56,25320 Dec 18
R. Gadgil
EntityIndividual
Role
Head of Marketing
President of Marketing
Shares331
Max Price₹169.95
Sell₹4,239,40614 Dec 18
R. Gadgil
EntityIndividual
Role
Head of Marketing
President of Marketing
Shares25,000
Max Price₹169.58
Sell₹850,00907 Dec 18
R. Gadgil
EntityIndividual
Role
Head of Marketing
President of Marketing
Shares5,000
Max Price₹170.00
Sell₹5,097,33003 Dec 18
R. Gadgil
EntityIndividual
Role
Head of Marketing
President of Marketing
Shares30,000
Max Price₹170.00
Sell₹84,874,97703 Dec 18
Mafatlal Industries Limited
EntityCompany
Shares500,000
Max Price₹169.75

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Hrishikesh Mafatlal (64yo)

    Executive Chairman

    • Tenure: 14.3yrs
    • Compensation: ₹46.04m
  • Vikas Gupte

    Company Secretary

    • Tenure: 11.6yrs
    • Compensation: ₹6.34m
  • Sudhir Deo (64yo)

    MD & Executive Director

    • Tenure: 2.3yrs
    • Compensation: ₹34.63m
  • R. Gadgil (66yo)

    President of Marketing

    • Tenure: 0yrs
    • Compensation: ₹19.12m
  • P. Srinivasan (52yo)

    President of Finance & CFO

    • Tenure: 0yrs
    • Compensation: ₹18.63m
  • C. Nandi (60yo)

    Vice President of Research & Development

    • Tenure: 0yrs
  • R. Desai (58yo)

    Vice President of Operations

    • Tenure: 0yrs
  • N. Gangal (53yo)

    Vice President of QA

    • Tenure: 0yrs
  • Rakesh Srivastava

    Assistant Vice President of Exports

    • Tenure: 0yrs
  • Ashwin Bhende (51yo)

    Assistant Vice President of Technology

    • Tenure: 0yrs
    • Compensation: ₹5.24m

Board Members

  • Dhananjay Mungale (66yo)

    Independent Non Executive Director

    • Tenure: 12.7yrs
    • Compensation: ₹2.49m
  • Debu Bhattacharya (71yo)

    Additional Director – Non Executive-Independent

    • Tenure: 0.5yrs
  • N. Sankar (73yo)

    Independent Non Executive Director

    • Tenure: 14.3yrs
    • Compensation: ₹2.42m
  • Hrishikesh Mafatlal (64yo)

    Executive Chairman

    • Tenure: 14.3yrs
    • Compensation: ₹46.04m
  • Rohit Arora (60yo)

    Independent Non Executive Director

    • Tenure: 14.3yrs
    • Compensation: ₹2.39m
  • Vilas Gupte (74yo)

    Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: ₹2.53m
  • Sudhir Deo (64yo)

    MD & Executive Director

    • Tenure: 2.3yrs
    • Compensation: ₹34.63m
  • Pradeep Bhide (69yo)

    Independent Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: ₹2.25m
  • Priyavrata Mafatlal (32yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: ₹2.21m
  • Dharmishta Raval (63yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹2.14m

Company Information

NOCIL Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NOCIL Limited
  • Ticker: 500730
  • Exchange: BSE
  • Founded: 1961
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹17.545b
  • Shares outstanding: 165.60m
  • Website: https://www.nocil.com

Location

  • NOCIL Limited
  • Mafatlal House
  • 3rd Floor
  • Mumbai
  • Maharashtra
  • 400020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500730BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1996
NOCILNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1996

Biography

NOCIL Limited manufactures and sells rubber chemicals in India. The company offers products, such as accelerators, anti-degradants, antioxidants, pre vulcanization inhibitors, and post vulcanization stabil ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 12:34
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.