HDFC Securities Bets On Small Cap Chemicals Stock, Buy For 25% Gains, 30% Dividend

Chemicals sector small-cap firm NOCIL Ltd. gets a Buy rating from HDFC Securities. It has assigned a target price of Rs. 280/share. The stock is showing a potential upside of up to 25% considering the given target price and the current market price. It has a market price of Rs. 3,749.46 crore.

Approves Dividend

The Board of Directors of NOCIL in their meeting held on May 30, 2023, approves payment of a dividend of Rs. 10/share i.e. 30% of face value.

"Payment of Dividend of Rs. 3 per Equity Share of Rs. 10/- each( 30 % of the face value) if declared at the Annual General Meeting to each," the company said in an exchange filing.

It added, "Annual General Meeting to be held on Monday, 31th July 2023 at 3.00 p.m."

Demand uptick witnessed in Q4

HDFC Securities, "Our BUY recommendation on NOCIL with a TP of INR 280 is premised on (1) a ramp-up in capacity utilisation and (2) expansion of margin with a focus on specialised rubber chemicals. Q4 EBITDA/PAT were 7/14% above our estimates, owing to a 6% rise in revenue, lower-than-expected employee cost and other expenses, offset by higher-than-expected raw material cost."

Stock Outlook

The last traded share price of NOCIL is Rs. 225/share, down 0.35% from its previous close of Rs. 225.80/share. Its 52 week high is Rs. 294.90/share, and 52-week low is Rs. 199.10/share, respectively.
It has given 1.74% in 1 week, 1.65% in 1 month and 1.86% in 3 months, respectively. It has fallen 11.5% in 1 year. It gave 156.12% positive return in 3 years, and 22.35% in 5 years, respectively.

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