Buy Oriental Carbon & Chemicals target Rs 1,140: Centrum Broking
Centrum Broking has buy call on Oriental Carbon & Chemicals with a target price of Rs 1140.
The current market price of Oriental Carbon & Chemicals is Rs 975.4.
In a report Centrum Broking says, “Our recent discussions with management of Oriental Carbon & Chemicals (OCCL) point out that the ramp-up of its new Insoluble sulphur (IS) line at Mundra has been faster than expected and OCCL’s market penetration efforts into a difficult US market have remained effective. Work on the fourth line is already underway and we believe that early commissioning (similar to third line) is a strong possibility again. We expect volumes to rise strongly over FY18-19E and consolidated margins are expected to improve materially led by benefits of i) operating leverage, ii) reduced power & fuel costs and iii) turnaround of its downsized subsidiary Duncan Engineering. We expect OCCL to steadily increase its market share in the global IS market in the next few years as it expands into new geographies (US, China). Maintain Buy with an unchanged target price of Rs 1,140 based on our conservative adjusted OCF based methodology.”
Oriental Carbon & Chemicals, incorporated in the year 1978, is a Small Cap company (having a market cap of Rs 987.03 crore) operating in Tyres sector.
Oriental Carbon & Chemicals key Products/Revenue Segments include Insoluble Sulphur which contributed Rs 262 crore to Sales Value (90.91 per cent of Total Sales), Sulphuric Acid & Oleum which contributed Rs 22.74 crore to Sales Value (7.89 per cent of Total Sales), Export Incentives which contributed Rs 3.43 crore to Sales Value (1.19 per cent of Total Sales)for the year ending 31-Mar-2016.
For the quarter ended 31-03-2017, the company has reported a Standalone sales of Rs 82.10 crore, up 17.93 per cent from last quarter Sales of Rs 69.62 crore and up 19.81 per cent from last year same quarter Sales of Rs 68.52 crore.
Company has reported net profit after tax of Rs 9.30 crore in latest quarter.
The company’s top management includes Mr.Akshat Goenka, Mr.Arvind Goenka, Mr.B B Tandon, Mr.H S Shashikumar, Mr.J P Goenka, Mr.K Raghuraman, Mr.O P Dubey, Mr.S J Khaitan, Mrs.Runa Mukherjee. Company has Singhi & Co. as its auditors.
As on 31-03-2017, the company has a total of 10,296,062 shares outstanding.
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Via:: Economic Times – Stocks