As per the Company website it is the Largest Rubber Chemicals Manufacturer in India. It belongs to Arvind mafatlal group. The Company has two manufacturing plant one situated in Mumbai and other in Gujarat.
The products from the Company are outlined below
- Anti Degradants
- Anti Oxidants
- Pre Vulcanization Inhibitor
- Post Vulcanization Stabilizer
The Company exports its products to more than 40 countries in India. The products from the Company has domestic demand as well.
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
NOCIL Stock Performance
The stock has not given any positive returns from year 2002 to 2014. So for more than one decade it did not perform. This will offset any investor. The only soothing point was that stock did not give any negative returns to investors.
Majority of price action in the stock came only after year 2014. I personally do not like Companies who have spiked movement for some years as majority of time these stocks again get into hibernation. Investors who invested at higher levels then do not make money.
The dividend yield is very good at current market price. I love companies paying regular and decent dividend.
NOCIL My Opinion
NOCIL is a Chemicals Company. Chemicals is very broad sector. It can be sub divided into Rubber Chemicals or Textile Chemicals or other similar divisions. The Company is a niche player as it focuses only on Rubber chemicals.
The fortune of the Company is tied with Rubber. This is a business to business Company. Business to Business Companies rely on growth of industries they are catering to.
Majority of rubber is consumed in Automotive Industry as part of Tyres. This is major rubber consuming sector. Apart from this sector rubber is used in variety of other industries.
I am already invested into Chemicals sector. As of now I do not want to increase my exposure in the sector. I will not be tracking this Company as I do not like one time wonder Companies. Rubber usage is diminishing from many places and tyres is the only major consumer of Rubber. So instead of investing in B2B chemical Company one can invest directly in Tyre Company.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.