OCCL Limited

Basic Materials — Chemicals · NSE

₹196.50−₹29.65 (−13.11%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

OCCL Limited manufactures and sells insoluble sulphur in India. The company also offers commercial grade and battery grade sulphuric acid and oleums for use as a dehydrating agent, and catalyst and active reactant in chemical processes, solvents, and absorbents.

IndustryChemicals

SectorBasic Materials

Annual revenue₹506 Cr

How does it make money?

Turns over ₹506 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are 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 12.4% 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 ROE15.4%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 22.6% and earnings to grow about 68.8% in the year to 2027. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.6%

Est. earnings growth+68.8%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -5% while net margin moved +3% 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-5%

Margin effect+3%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.7% a year
✗ Profit has declined at 0.6% a year

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

82/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

13.1x

2Y Median

20.4x

26 monthly readings · mean 18.8x · range 6.9x–38.7x

Sector Median

33.8x

median of 3 sector peers

🟢Current valuation is approximately 36% below its 2y median of 20.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 61% below the peer median of 33.8x.

vs. its own history

Cheap

20.4x median over 26 months · -36%

vs. sector peers

Cheap

33.8x median of 3 peers · -61%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

11.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 46% over 3 years.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 34% against revenue up -5% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 46% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 61% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 21.5% to 18.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 17%✓ 18.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 12.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 20.4x✓ 13.1x 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 · 5 neutral · 1 weak

Market Cap

₹982 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.1x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹14.98

Profitable

Profitable on a per-share basis

ROE

11.1%

Moderate

Moderate capital efficiency

ROCE

12.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

64.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

122.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.42%

Modest

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

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

12.1x

Improving

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

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.81

Comfortable

Healthy short-term liquidity

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

192.0 / 172.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹533 Cr	—	₹307 Cr	₹506 Cr	-1.7%
EBITDA	₹115 Cr	-₹0 Cr	₹58 Cr	₹95 Cr	-6.1%
EBITDA Margin	21.5%	—	19.0%	18.8%	—
PAT (Net Profit)	₹49 Cr	-₹0 Cr	₹21 Cr	₹48 Cr	-0.6%
EPS	₹9.74	₹-0.01	₹4.29	₹9.55	-0.6%
ROE	8.1%	—	5.4%	11.1%	—
ROCE	11.1%	—	7.3%	12.4%	—
Total Debt	₹167 Cr	₹0 Cr	₹62 Cr	₹90 Cr	-18.7%
Free Cash Flow	₹83 Cr	-₹0 Cr	₹57 Cr	-₹5 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.7% a year).

🔴 EBITDA has shrunk at 6.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.5% to 18.8% over 3 years (-2.7 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-0.6% a year).

🟡 EPS has been broadly flat over 3 years (-0.6% a year).

🟢 ROE has risen from 8.1% to 11.1% over 3 years (+3.0 pts).

🟢 ROCE has risen from 11.1% to 12.4% over 3 years (+1.3 pts).

🟢 Total Debt has shrunk at 18.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹83 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹602 Cr

Total Liabilities

₹170 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

4.7%

Insider Holding

57.2%

Corporate Actions

Dividend Rate

₹2.8

Ex-Dividend Date

20 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹165

-16.0% vs CMP

Target Range

₹165 – ₹165

Peer Comparison

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

Recent News

2 positive1 mixed3 general

OCCL Share Price Falls 17.18%: Price and Valuation

Univest, 16 OctPrice 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.

OCCLLTD Stock Price and Chart — NSE:OCCLLTD

TradingView, 15 Jul

OCCL Q1 Results: Net Profit Rises 206% YoY, EBITDA Margin Expands to 28.1%

scanx.trade, 30 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

OCCL Q4 PAT Jumps 123% to Rs 19.3 Cr; Declares Dividend

scanx.trade, 21 MayCapital return

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

OCCL Lower Circuit Today: Price, Data and Peers

Univest, 08 Oct

Oriental Carbon stock up over 50% in July; what's leading the bull charge?

Business Standard, 15 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑