Buy NOCIL, target price Rs 283: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on NOCIL with a target price of Rs 283. The current market price of NOCIL is Rs 244.35.

NOCIL, incorporated in the year 1961, is a Small Cap company (having a market cap of Rs 4064.76 Crore) operating in Chemicals sector.

NOCIL Ltd. key Products/Revenue Segments include Duty Drawback, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 390.09 Crore, down -23.50 % from last quarter Total Income of Rs 509.95 Crore and up 3.60 % from last year same quarter Total Income of Rs 376.53 Crore. Company has reported net profit after tax of Rs 35.73 Crore in latest quarter.

The company’s top management includes Mr.Hrishikesh A Mafatlal, Mr.Priyavrata H Mafatlal, Mr.V S Anand, Mr.Rohit Arora, Mr.P V Bhide, Ms.Dharmishta N Raval, Mr.Debnarayan Bhattacharya, Mr.D N Mungale, Mr.S R Deo, Mr.Vilas R Gupte. Company has Kalyaniwalla & Mistry LLP as its auditors. As on 30-09-2022, the company has a total of 17 Crore shares outstanding.

Investment Rationale
The stock is trading at 19x FY24E EPS of Rs 13 and 12x FY24E EV/EBITDA. The brokerage expects the return ratios to be stable at 12-13% in FY23-24.

Promoter/FII Holdings
Promoters held 33.84 per cent stake in the company as of 30-Sep-2022, while FIIs owned 2.94 per cent, DIIs 5.09 per cent.