Nocil LTD: Retail Research

Pick of the Week 20 Feb 2017
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Nocil Ltd
Industry CMP Recommendation Add on Dips to band Targets Time Horizon
Specialty Chemicals Rs. 81 Buy at CMP and add on declines Rs. 74-76 Rs. 91.25 & Rs. 98 2-3 quarters
HDFCSec Scrip Code NOCLTDEQNR Incorporated in 1961, Nocil is a part of Arvind Mafatlal Group, a well-known business house in India with diversified business
interest. Nocil is the largest rubber chemical manufacturer in India with wide range of rubber chemicals for use in Tyre &
BSE Code 500730 other rubber application industries. Nocil has customer relationship with clients in around 40 countries. The company has
NSE Code NOCIL two manufacturing units at Thane, Maharashtra and Dahej, Gujarat and dedicated ancillary unit with combined capacity of
Bloomberg NOCIL IN
55,000 MTPA. The company is planning a brownfield expansion at its Dahej facility at a cost ~Rs 150170 cr.
CMP (as on 17 Feb, 17) 81.05 Investment Rationale

Equity Capital (Rs crs) 163.58 Market leader in rubber chemicals
Face Value (Rs) 10 Strong growth in automobile sector
Dahej plant has been a game changer
Eq Sh Outstanding crs 16.4
Encouraging financial parameters
Market Cap (Rs crs) 1325.84
Continuous R&D initiatives leading to higher efficiency
Book Value (Rs) 29.1
Avg. 52 Week Volumes 20,86,000 Risks and Concerns
The business operations is dependent on the behaviour of the automobile industry
52 Week High 84.70
The continued dumping of low priced Rubber chemicals from China, Korea and Europe
52 Week Low 37.85
Volatility in raw material prices
Foreign exchange fluctuation
Shareholding Pattern (Dec 2016)
Promoters 37.35 Financial Summary
Particulars (Rs in Cr) FY12 FY13 FY14 FY15 FY16 FY17E FY18E
Institutions 5.40 Operating Income 481.5 488.2 596.1 719.0 715.2 738.3 801.8
Non Institutions 57.25 EBITDA 34.9 20.9 60.9 111.9 138.1 156.9 168.2
PAT 34.6 42.1 23.6 56.8 77.7 118.4 106.6
Total 100.00
Adj. EPS (Rs.) 2.1 1.2 1.6 3.5 4.8 6.0 6.5
P/E (x) 37.7 65.5 50.8 22.9 16.8 13.4 12.4
Fundamental Research Analyst: EV/EBITDA 19.4 35.3 16.9 10.5 7.8 6.6 6.1
Atul Karwa RoNW (%) 10.3 11.5 6.3 13.7 16.6 21.3 16.8
atul.karwa@hdfcsec.com (Source: Company, HDFC Sec)
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View and Valuation
Nocil, the largest rubber chemical manufacturer in India has long-established relationship with leading domestic and global
tyre manufacturers. With its diversified product portfolio it is in the position to take advantage of the global consolidation in
the rubber chemical market. The company continues to have a comfortable liquidity position marked by healthy cash
accruals, liquid investments in group companies and low utilisation of working capital Bank borrowings.
With major tyre companies shifting their supplies to India from China, Nocil stands at an advantageous position. Also the
company has all the compliance in place which the Chinese companies lacked. With the anti-dumping duty levied globally
and is in effect until CY19 and ramp up of Dahej facility in place, Nocil is expected to be benefitted. Nocil is optimistic about
its prospects and anticipates another round of capex soon. While plans for this havent been finalised, the management
envisages brownfield expansion at its Dahej facility to cost ~Rs 150170 cr, most of which will be funded through a mix of
internal accruals and debt.
We think that investors could buy the stock at the CMP and add on declines to Rs. 74-76 band (11.5x FY18E EPS) for
sequential targets of Rs. 91.25 (14x FY18E EPS) and Rs. 98 (15x FY18E EPS) over 2-3 quarters.
Business Overview
Nocil is a part of Arvind Mafatlal Group, a well-known business house in India with diversified business interest. Nocil is the
largest rubber chemical manufacturer in India with wide range of rubber chemicals for use in Tyre & other rubber application
industries. Nocil has customer relationship with clients in around 40 countries. The company has a strong pipeline of new
generation rubber chemicals. The company has two plants, one in Navi Mumbai set up in 1980-81 and the other at Dahej
(Gujarat) set up in March 2013. The Navi Mumbai plant (located at Trans Thane Creek Industrial Area) has a capacity of
45,000 MT and produces only finished goods whereas the plant at Dahej which has 10,000 MT capacity produces only
intermediates. Some of the major raw materials like Benzene are crude derivatives and as such raw material costs and sales
have a high correlation with crude price movement.

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The company produced 46,000 MT of rubber chemicals and intermediates in FY16 as compared to 46,266 MT in FY15
representing decrease of around 0.6% (YoY) in production. Exports de-grew by around 13.5% YoY in FY16 with export sales at
around Rs. 200 cr.
The drop in volume during FY13 is because most of the major customers of Nocil undertook significant production cuts to
align their production with the decline in the demand from the automobile sector. This in turn, resulted in lower demand for
Rubber Chemicals and hence lower production by Nocil.
Exports accounted for 28% of the companys revenues in FY16. Share of exports have been falling in recent times due to
weak prevalent market conditions in the European Union and Japan. Also the company has consciously decided to stay away
from certain traditional but nonstrategic export markets, in the face of unrealistically low pricing from Chinese and Korean
suppliers.
Products
The company provides the full range of rubber chemical products (about 20-22 products) which is not the case with its peers
like Lanxess India, Merchem, PMC Rubber, etc. They provide few of the products mentioned below. This makes Nocil a one
stop solution for all the rubber chemicals required.
Products Usage
Increase the speed of vulcanization & to permit vulcanization to proceed at lower
Accelerators
temperature & with greater efficiency
An anti-degradant or deterioration inhibitor is an ingredient in rubber compounds to deter
Anti-degradants
the aging of rubber products

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Antioxidants Chemical compound that inhibits oxidation & can be used as a stabilizer in rubbers, etc.
Pre Vulcanization Inhibitor Inhibitor of premature vulcanization of synthetic & natural rubbers during processing
Post Vulcanization Inhibitor Improves Thermal Stability of cross links in rubber products
Vulcanization is a chemical process for converting natural rubber or related polymers into more durable materials via the addition of sulfur
or other equivalent curatives or accelerators.
Investment Rationale
Market leader in rubber chemicals
Nocil, part of the Arvind Mafatlal Group, has an operational track record stretching back to 1975. It operates two
manufacturing facilities (Thane and Dahej) and has a combined capacity of 55,000MT. It offers a wide range of rubber
chemicals viz PILFLex (antidegradants), PILnox (antioxidants), PILcure (accelerators) and PILGarD (pre-vulcanisation
inhibitor and post-vulcanisation stabilizer) and leads market share in India (by volumes). These chemicals find application in
motor cycle and scooter tyres, butyl tubes, cycle tyres and tubes, beltings, retreading materials, conveyor belt covers,
footwear, hot air cured products, hoses, cables and miscellaneous molded and extruded rubber products. The company also
exports to 40 countries globally and has a reputation as a technically superior and dependable supplier. The company derives
about 28% of FY15 revenue from exports.
The total world production is about 8,50,000 MT per annum out of which majority of production (~5,00,000 MT) is in China,
followed by Europe (1,75,000 MT), Korea (70,000 MT), India (65,000-70,000 MT) and balance of about 35,000-40,000 MT in
Rest of World (RoW). In terms of products, out of the total production, 45% is of Accelerators, 45% of Antioxidants and 10%
Other Chemicals. The total industry is about $3 billion with an average growth of 3-4% per annum.
Out of the total production in India, Nocil commands a lions share of 55,000 MT production thus is the market leader in the
country. The company deals with both generic and specialised products. The competitive edge of Nocil in specialised
products is more than generics which is ruled by China and Korean players. The company wants the revenue mix to be more
concentrated on specialised products rather than generics. At present, revenue mix is 50:50 but in next 3-4 years it would be
65-70% specialised and balance of generics.
Strong growth in automobile sector

6065% of the global consumption of rubber is by automotive tyres, with the rest used in footwear production, latex
products, cycle tyres and tubes, and OTR tyres among others. Consequently, tyre manufacturers constitute a significant
chunk of Nocils clientele. It supplies to all domestic tyre manufacturers in addition to several international tyre companies
and has ~3,200 clients in the nontyre segment. Over the next three years, ICRA expects the tyre demand in the Indian
market to report a 6-7% volume growth, supported by a broad-based revival in Automotive OE demand. Pick up in rural
expenditure with good monsoon would translate into higher OEM demand for the rural centric two-wheeler (2W) and tractor
segments. Growing fleet on ground and higher miles driven/freight moved would drive replacement sales.

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Management is confident of increasing the capacity utilization at both the units given a revival in commercial vehicle
industry. Commercial vehicles use large tyres where usage of rubber chemicals is more as compared to passenger car tyres.
Rubber chemicals form around 4% of the total raw material cost in tyre manufacturing process. Chemicals supplied to tyre
companies formed 60% of Nocils business. Major tyre companies have started consolidating their operations in & around
Asia closer to the growth Markets. Customers take from 6-18 months to give approval for a specific location under specific
climatic conditions & same is carried out for various locations globally. With established track record, Nocil will benefit from
this scenario.
Also the company has few products which are greener products and fulfill the criteria required as per Bharat Stage-VI norms
which are to be implemented by April 2020. This would give the company an edge over its peers.
Dahej Plant A Game changer

Post the commissioning of Dahej plant the company has witnessed a significant improvement in its operating parameters.
The Dahej plant started commercial production in March-2013. However the capacity utilization of this plant was largely
impacted by the very high imports of the product into the country due to the aggressive dumping. After the implementation
of anti-dumping duty capacity utilization has surged. Dahej plant is a zero wastage plant resulting in significant reduction in
cost of production. Nocil adopted a judicious approach of promoting exports of only high value/specialized products, and
staying away from high volume products with poor margins. Its focus on improving its sales-mix, by promoting some
speciality and high-value products to specific customers coupled with the fall in crude prices has resulted in EBITDA margins
expansion from ~4.5% in FY13 to ~19% in FY16. Nocil has a strong pipeline of new generation of specialty and high value
rubber chemicals and can expand its Dahej plant to manufacture them. Interest costs had shot up subsequent to
commissioning of Dahej plant, which the company has been able to control by utilizing the strong cash flow to repay loans.

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Encouraging financial parameters return ratios to remain stable

Nocil has utilized its strong operating cash flows to pare down its debt levels. It has now become a debt free company on a
net basis. Change in product mix and higher efficiency has resulted in PAT margins improving from 4% in FY14 to 14% in
9MFY17. Consequently return ratios have also expanded with RoNW rallying from 11.5% in FY13 to 16.6% in FY16. We expect
return ratios of the company to remain stable going forward. Looking at the improved performance of the company
institutional investors have also increased their stake to 5.4% at the end of Q3FY17 from 2.4% at the end of FY16

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Continuous R&D initiatives of Nocil are a major factor of increase in its efficiency
Nocils R&D continues to be acknowledged as one of its core strengths by all its domestic and international customers. The
Research Centre is recognized by Ministry of Science and Technology, Government of India and it focuses on key business
areas including:
Process development, scale up and commercial implementation.
Environmental strategies for sustainable growth.
Introduction of emerging technologies for process/ product improvements.
Research initiatives as per customers perceived needs.
The innovative environmental strategies implemented in the plant have resulted among other things into improvements in
conserving natural resources and valuable chemicals. In-house technology development is protected by obtaining National
and International Patents. The Companys R&D team consistently endeavors to create innovative concepts which will yield
significant benefits in the short as well as long term.
Unrealized profits in investments

Nocil had made investments in Navin Fluorine and Mafatlal Industries in the past and at the end of FY16 held ~5.66 lakh
shares in both the companies. The share prices of both the companies have increased significantly and the company is
looking to liquidate its investments and book some profits. It sold 95325 shares in Navin Flourine in Q2FY17 and realized a
profit of Rs 19.7 cr. The unrealized profit in the books works out to be ~Rs 7.2 per share.
Industry prospects
Rubber Chemicals Industry
Rubber chemicals find their application in rubber-based industries such as Tyres, Tubes, moulded & extruded components,
belting, footwear etc. Although these chemicals form a very small component of the consuming industries inputs (3% of the
rubber consumption), they are very critical from quality and productivity angles. The demand for rubber chemicals is directly
linked to the overall Rubber consumption (Natural & Synthetic Rubber) which in turn is linked to the level of economic
activity. The single largest rubber-based industry viz. the tyre industry, is directly dependent on the transportation &
Automotive Sector. Performance of the Rubber Chemicals industry is therefore, largely dependent on the performance of the
Tyre and automobile industry.

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2022-Consumption Breakup
38
15
23
Tyres General Total

Rubber Goods
Automobile Industry
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY
2015-16, following a growth of 2.6% over the last year. The automobile industry accounts for 7.1 per cent of the country's
gross domestic product (GDP). India is also a prominent auto exporter and has strong export growth expectations for the
near future. In addition, several initiatives by the Government of India and the major automobile players in the Indian market
are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.
According to the Society of Indian Automotive Manufacturers (SIAM), Indian automotive sector today is a $74 billion industry
and by 2026, the industry is expected to achieve a turnover of $300 billion- clocking a CAGR of ~ 15 percent.
Growth in sales of passenger vehicles in India was among the fastest in the largest auto markets in the world in FY16 as
vehicle purchases slowed in China and declined in Japan and the US. At 7.64% growth over the previous year, India led the
top eight markets as the countrys economy bottomed out and public investment improved market conditions for domestic
auto firms during 2015. As per ICRA estimates passenger vehicles are expected to grow by ~10% in FY17 and sales volume are
likely to cross 3 mn mark for the first time. The first 10 months have witnessed sales of 2.5 mn vehicles. Also India is expected
to become the third largest passenger vehicle market by 2018. Given the low penetration levels in the country, the long-term
prospects of the industry remain favorable.

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Macro developments generate positive tailwinds
Several developments over the last few years have had a positive effect on Indian rubber chemical companies, especially
Nocil. Over the last 3-4 years, the global rubber chemical industry has seen many large manufacturers restructure/exit their
rubber chemical operations due to high competition from China and Korean players as they offered artificially low prices to
customers. There were also unit closures in China due to environmental concerns which resulted in reduced supply from
Chinese manufacturers. In order to protect the domestic rubber chemical manufacturers from Chinese and Korean
competition, Indian Government from July 2014 levied antidumping duty (ADD) which is valid till July 2019.
Now all the major MNCs are trying to de-risk their supply chain by diversifying raw material procurement away from China
due to the risk associated with Chinese exports. The major tyre companies have started consolidating their operations in &
around Asia closer to the growth markets. With established track record, Nocil will benefit the most from any additional
capacities being put up by these tyre Companies in India and would gain further market share.
View and Valuation

accruals, liquid investments in group companies and low utilization of working capital Bank borrowings.
its prospects and anticipates another round of capex soon. While plans for this havent been finalized, the management
Risks/Concerns
The business operations (to a large extent) is dependent on the tyre industry which is primarily used in automobile
industry. Any slowdown in Auto sector would affect Nocil.
The continued dumping of low priced Rubber chemicals from China, Korea and Europe, despite Anti-Dumping duties
being in place are the major concern areas for the business. The recent litigation strategies adopted by the exporters of
Rubber Chemicals to India in case of anti-dumping duties, with quite a few petitions pending in Delhi High Court as well
as the Supreme Court, are a matter of worry. The current ADD expire in July 2019 and could be a cause of concern if not
extended.

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Raw material price volatility: Any rise in input costs cannot be automatically passed on to the customers and it generally
takes 3-6 months to pass on these increases, depending on how the foreign suppliers respond to such cost increases.
Foreign exchange fluctuation, as exports contributed ~30% of revenue. Sentiment-driven fluctuations in the currency
could also impact product pricing and margins, both in the domestic as well as export markets.
Promoters have pledged shares of the company to the extent of 10.7% of the total shares.
Company has a very large equity base and would require substantial improvement for any meaningful change in EPS.
Q3FY17 Result Review
Nocil reported decent numbers for Q3FY17. Revenues increased at a meagre rate of 4.2 % YoY to Rs 177.3 in Q3FY17. EBITDA
rose by 10.3 % YoY to 39.6 crore. EBITDA margin increased by 150 bps due to decrease in cost of material consumed to
22.3%. PAT increased by 25.7% YoY to Rs. 25.4. PAT margin improved by 250 basis points in Q3FY17 to 14.4% driven by
increase in other income.
Quarterly Standalone
Particulars (Rs cr) Q3FY17 Q3FY16 % chg Q2FY17 % chg 9MFY17 9MFY16 % chg
Income from Operations 173.8 168.4 3.2% 178.7 -2.7% 543.1 532.5 2.0%
Other Operating Income 3.5 1.8 2.6 8.3 5.1
Total Income 177.3 170.2 4.2% 181.3 -2.2% 551.4 537.6 2.6%
Raw Material Cost 84.4 81.4 3.8% 80.6 4.8% 262.7 275.4 -4.6%
Employee Expenses 14.4 14.1 2.1% 16.8 -14.3% 47.8 42.6 12.1%
Freight 0.0 0.0 0.0 0.0 0.0
Other Expenses 38.9 38.9 0.1% 42.8 -9.0% 123.5 118.9 3.9%
Total Expenditure 137.7 134.4 2.5% 140.1 -1.7% 434.0 436.9 -0.7%
Operating Profit 39.6 35.8 10.5% 41.2 -3.9% 117.4 100.6 16.7%
Other Income 2.7 0.8 241.8% 1.8 7.3 2.8
PBIDT 42.3 36.6 15.5% 43.0 -1.7% 124.7 103.4 20.6%
Interest 0.6 2.1 0.6 1.8 7.8
PBDT 41.7 34.5 20.9% 42.4 -1.7% 122.9 95.6 28.6%
Depreciation 3.7 3.5 5.8% 3.6 2.5% 10.7 10.3 4.4%
PBT 38.1 31.1 38.9 112.2 85.3
Tax (including DT & FBT) 12.6 10.9 12.6 37.3 30.1
Profit After Tax 25.5 20.2 26.2% 26.3 -3.0% 74.9 55.2 35.8%
Exceptional Item 0.0 0.0 19.7 19.7 0.0
Reported Profit After Tax 25.5 20.2 26.2% 46.0 -44.6% 94.6 55.2 71.4%
EPS (Rs.) 1.6 1.3 2.9 5.9 3.4
Equity 160.8 160.8 160.8 160.8 160.8
bps bps bps
OPM (%) 22.8 21.3 150 23.0 -28 21.6 18.9 272
PATM (%) 14.4 11.9 250 25.4 -1099 17.2 10.3 689
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View and Valuation
accruals, liquid investments in group companies and low utilisation of working capital Bank borrowings.
its prospects and anticipates another round of capex soon. While plans for this havent been finalised, the management
Financials
Profit & Loss Standalone
Total Operating Income 481.5 488.2 596.1 719.0 715.2 738.3 801.8
Raw material consumed 294.9 315.7 349.0 388.6 359.5 357.2 390.0
Employee expense 36.0 37.2 41.0 48.1 57.8 62.0 66.4
Other Expenses 115.7 114.4 145.2 170.5 159.8 162.2 177.2
Total Operating Expenses 446.6 467.3 535.2 607.1 577.1 581.4 633.6
Operating Profit 34.9 20.9 60.9 111.9 138.1 156.9 168.2
Other Income 23.5 13.4 10.8 3.9 3.1 8.5 9.2
EBITDA 58.4 34.3 71.7 115.8 141.2 165.4 177.4
Interest 0.4 3.8 17.4 16.5 9.3 2.4 2.7
Depreciation 10.1 9.0 17.6 13.6 13.7 14.6 15.6
PBT 47.9 21.6 36.7 85.7 118.1 148.4 159.1
Tax (including FBT & DT) 13.3 1.7 11.1 28.9 40.4 49.7 52.5
PAT before exceptional item 34.6 19.9 25.7 56.8 77.7 98.7 106.6
Exceptional items 0.0 22.3 -2.0 0.0 0.0 19.7 0.0
Reported PAT 34.6 42.1 23.6 56.8 77.7 118.4 106.6
(Source: Company, HDFC Sec)
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Balance Sheet Standalone
Equity & Liabilities
Shareholders Funds 334.2 365.0 376.4 413.4 467.9 556.8 633.8
Equity Share Capital 160.8 160.8 160.8 160.8 160.8 160.8 160.8
Reserves & Surplus 173.4 204.2 215.6 252.6 307.2 396.0 473.1
Non-Current Liabilities 116.4 133.2 122.3 105.2 79.4 81.3 84.4

Long Term borrowings 75.0 93.2 71.8 50.5 15.0 14.3 14.0
Deferred Tax Liabilities (Net) 23.1 28.1 39.0 41.4 46.2 48.5 50.9
Long Term Provisions 18.4 11.9 11.5 13.3 18.2 18.6 19.5
Current Liabilities 97.1 160.7 237.8 238.5 131.2 138.7 149.0

Short Term Borrowings 5.5 37.3 59.1 75.5 0.9 0.9 1.0
Trade Payables 61.0 65.5 124.1 89.3 74.0 78.4 84.7
Other Current Liabilities 17.7 44.1 40.8 51.7 31.5 34.0 36.8
Short Term Provisions 13.0 13.7 13.8 22.1 24.8 25.3 26.6
Total Equity & Liabilities 547.7 658.9 736.4 757.1 678.5 776.8 867.2
Assets
Non-Current Assets 276.5 399.7 398.0 380.1 373.8 391.0 417.8
Fixed Assets 221.9 324.1 304.9 296.6 295.8 310.6 332.3
Non-Current Investments 0.2 22.4 47.3 47.3 47.3 47.3 47.3
Long -term Loans and Advances 54.4 53.2 45.8 36.2 30.7 33.1 38.1
Current Assets 271.1 259.1 338.5 377.0 304.7 385.7 449.5

Inventories 114.3 115.7 159.9 187.5 132.4 165.5 198.6
Trade Receivables 99.6 110.9 147.7 167.2 151.1 166.2 182.8
Cash & Cash Equivalents 39.9 12.2 15.0 4.8 7.0 38.7 51.2
Short Term Loans & Advances 17.2 20.0 15.6 17.4 14.0 15.1 16.6
Other Current Assets 0.2 0.4 0.3 0.2 0.3 0.3 0.3
Total Assets 547.7 658.8 736.4 757.1 678.5 776.8 867.2

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Key Financial Ratios Standalone
Particulars FY12 FY13 FY14 FY15 FY16 FY17E FY18E
No of Equity Shares 16.1 16.1 16.1 16.1 16.1 16.4 16.4
Current Market Price 81.1 81.1 81.1 81.1 81.1 81.1 81.1
Market Capitalization 1303.2 1303.2 1303.2 1303.2 1303.2 1325.8 1325.8
Enterprise Value 1343.8 1421.5 1419.1 1424.4 1312.1 1299.5 1286.8
Reported EPS 2.1 2.6 1.5 3.5 4.8 7.2 6.5
Adj. EPS 2.1 1.2 1.6 3.5 4.8 6.0 6.5
Cash EPS (PAT + Depreciation) 2.8 3.2 2.6 4.4 5.7 8.1 7.5
PE (x) 37.7 30.9 55.2 23.0 16.8 11.2 12.4
Book Value (Rs.) 20.8 22.7 23.4 25.7 29.1 34.2 38.9
P/BV (x) 3.9 3.6 3.5 3.2 2.8 2.4 2.1
OPM (%) 7.3 4.3 10.2 15.6 19.3 21.3 21.0
NPM (%) 7.2 8.6 4.0 7.9 10.9 16.0 13.3
ROCE (%) 11.6 5.1 10.7 18.9 26.3 26.2 24.8
RONW (%) 10.3 11.5 6.3 13.7 16.6 21.2 16.7
Debt-Equity 0.2 0.4 0.3 0.3 0.0 0.0 0.0
Current Ratio 2.8 1.6 1.4 1.6 2.3 2.8 3.0
Mcap/Sales(x) 2.7 2.7 2.2 1.8 1.8 1.8 1.7
EV/EBITDA 23.0 41.4 19.8 12.3 9.3 7.9 7.3
One Year Price Chart
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Fundamental Research Analyst: Atul Karwa, atul.karwa@hdfcsec.com
RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066
Website: www.hdfcsec.com Email: hdfcsecretailresearch@hdfcsec.com.
"HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475."
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Nocil LTD: Retail Research

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Pick of the Week 20 Feb 2017

CMP (as on 17 Feb, 17) 81.05 Investment Rationale

RETAIL RESEARCH P age |1

RETAIL RESEARCH P age |2

RETAIL RESEARCH P age |3

Strong growth in automobile sector

RETAIL RESEARCH P age |4

Dahej Plant A Game changer

RETAIL RESEARCH P age |5

Encouraging financial parameters return ratios to remain stable

RETAIL RESEARCH P age |6

Unrealized profits in investments

RETAIL RESEARCH P age |7

Tyres General Total

RETAIL RESEARCH P age |8

View and Valuation

RETAIL RESEARCH P age |9

Non-Current Liabilities 116.4 133.2 122.3 105.2 79.4 81.3 84.4

Current Liabilities 97.1 160.7 237.8 238.5 131.2 138.7 149.0

Current Assets 271.1 259.1 338.5 377.0 304.7 385.7 449.5

Total Assets 547.7 658.8 736.4 757.1 678.5 776.8 867.2

One Year Price Chart

Fundamental Research Analyst: Atul Karwa, atul.karwa@hdfcsec.com

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