NOCIL Limited

Basic Materials — Specialty Chemicals · NSE

₹165.65+₹2.72 (+1.67%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of NOCIL Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

NOCIL Limited engages in the manufacture and sale of rubber chemicals for tire, automotive, rubber goods, and industrial sectors in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees769

Annual revenue₹1,280 Cr

How does it make money?

Turns over ₹1,280 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 769 employees supports ₹1.66 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.66 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE22.3%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 18.5% and earnings to grow about 31.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.5%

Est. earnings growth+31.9%

Analysts5

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -21% while net margin moved -53% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-21%

Margin effect-53%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 7.4% a year
✗ Profit has declined at 28.0% a year

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

41.9x

3Y Median

28.8x

40 monthly readings · mean 30.2x · range 21.5x–51.6x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 46% above its 3y median of 28.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 40.4x.

vs. its own history

Expensive

28.8x median over 40 months · +46%

vs. sector peers

Fair

40.4x median of 4 peers · +4%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 18% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 9.6% to 3.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.1% to 4.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.3 points, from 16.0% to 9.7%.
🟡Profit is decliningFinancial
Net profit is down 63% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 18% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹77 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 16.0% to 9.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 46% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 9.6% to 3.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 8%✓ 9.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹77 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 4.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 28.8x✗ 41.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹2,767 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.56x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.95

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

4.1%

Weak

Low return on total capital employed

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

19.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

61.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.91%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹77 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

23.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.8%

Average

Average margins

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

4.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

175.7 / 173.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,611 Cr	₹1,437 Cr	₹1,372 Cr	₹1,280 Cr	-7.4%
EBITDA	₹258 Cr	₹213 Cr	₹161 Cr	₹125 Cr	-21.5%
EBITDA Margin	16.0%	14.8%	11.7%	9.7%	—
PAT (Net Profit)	₹149 Cr	₹133 Cr	₹103 Cr	₹56 Cr	-28.0%
EPS	₹8.92	₹7.95	₹6.15	₹3.32	-28.1%
ROE	9.6%	7.8%	5.8%	3.1%	—
ROCE	12.1%	9.8%	6.1%	4.1%	—
Total Debt	₹10 Cr	₹13 Cr	₹10 Cr	₹8 Cr	-6.4%
Free Cash Flow	₹252 Cr	₹165 Cr	-₹98 Cr	₹77 Cr	-32.6%

🔴 Revenue has shrunk at 7.4% a year over 3 years.

🔴 EBITDA has shrunk at 21.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.0% to 9.7% over 3 years (-6.3 pts).

🔴 PAT (Net Profit) has shrunk at 28.0% a year over 3 years.

🔴 EPS has shrunk at 28.1% a year over 3 years.

🔴 ROE has fallen from 9.6% to 3.1% over 3 years (-6.5 pts).

🔴 ROCE has fallen from 12.1% to 4.1% over 3 years (-8.0 pts).

🟢 Total Debt has shrunk at 6.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 32.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,111 Cr

Total Liabilities

₹337 Cr

Cash & Equivalents

₹32 Cr

Operating Cash Flow

₹252 Cr

Capex

-₹175 Cr

Shareholding (proxy)

Institutional Holding

10.0%

Insider Holding

41.9%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

3 Buy · 3 Hold · 0 Sell

Target Price (Mean)

₹194.67

+17.5% vs CMP

Target Range

₹170 – ₹221

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive4 mixed1 general

NOCIL Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

NOCIL Limited (NSE:NOCIL) Stock Goes Ex-Dividend In Just Three Days

Simply Wall Street, 20 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Nocil Share Price Falls as Chemical Stock Stays in Focus

Univest, 24 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Nocil share price jump 20% on anti-dumping boost. Do you own?

Livemint, 22 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Small-cap chemical stock NOCIL surges 12% after Q1 profit zooms 61% Y-o-Y

Business Standard, 03 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

NOCIL share price hits 20% upper circuit limit; here's why

Business Today, 22 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingRisk

WeakBusiness Quality · Growth · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — ROCE stays above 8%; Valuation vs its own median of 28.8x · see Key things to watch ↑