Technical Analysis:
Nocil Ltd share price is strongly moving up with volume. One can take interest in the stock as momentum stock trading. Nocil Ltd share price came down with the broader market. On 21st June, the stock closed above its previous two days with strong volume. Nocil Ltd share price was moving with a higher high over the last two months, despite weakness in the broader market.
The daily volume of the stock has been closing in green near both its long- and short-term moving averages for the last 15 days. On the weekly chartNocil Ltd share price has formed an inverse head and shoulder pattern. Once the stock closes at 270, it will go higher towards the 300 level.
Nocil Ltd share price trade above all its major moving averages. The counter has given golden cross over at the level of 229 when short term 50 DMA crossed over long term 200 DMA. On 18th May 2022. The stock’s all-time high is 321, which seems easily achievable in a short period. If the broader market supports, the stock may create a new all-time high within a month. Once it has crossed its previous all-time high, the stock will reach around 400 level in 3 to 6 months.
Suggested Reading on Momentum stock section India Glycols, Gokex, Balaji Amines, Gujarat Alkalies and PCBL
Fundamental Analysis:
Nocil Ltd. is a small-cap company with a market cap of INR 4436 crores available at 25 PE and 3.44 prices to book value. The Company manufactures and trades rubber chemicals. The company has been in the Rubber chemicals business for over 4 decades offering a wide range of rubber chemicals that caters the customer needs across industries. Nocil claims to be the Largest Rubber Chemicals Manufacturer in India.
Nocil Ltd. recorded a growth of above 50% in its revenues from INR 939 Cr in FY 21 to INR 1,575 Cr in FY 2022 and the revenue is double from INR 855 in FY 2020 to FY 2022. EBITDA also grew by 95% from INR 145 Cr in FY 2021 to INR 290 Cr in FY 2022. Net income has also doubled from INR 88 Cr to INR 176 Cr during the same period. EPS has also doubled from 5.33 to 10.58 over the same period. The auto and manufacturing sector is looking promising. Nocil Ltd. will do good in the near future.
