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Neutral NOCIL; target of Rs 170: Motilal Oswal
Neutral NOCIL; target of Rs 170: Motilal Oswal
About this update from Nocil Limited
Motilal Oswal's research report on NOCILNOCIL’s 2QFY26 was weak, with revenue declining 12% YoY to INR3.2b. EBITDA also declined 44% due to continued pricing pressure in the domestic market. Domestic volumes witnessed a positive traction in the quarter; however, the volumes in international markets were subdued due to global uncertainties and US tariff issues. Volumes in 1HFY26 declined in both the domestic and the international markets. We cut our FY26/FY27/FY28 earnings estimates by 28%/25%/19% due to sustained pricing pressure, rising competitive intensity, a global slowdown in rubber chemicals, and a slowdown in the US market. Exports are likely to be subdued in the near term. We reiterate our Neutral rating on the stock with a TP of INR170, based on 30x Dec’27 EPS.OutlookConsequently, we cut our FY26/FY27/FY28 earnings estimates by 28%/25%/19%. We reiterate our Neutral rating on the stock with a TP of INR170, based on 30x Dec’27 EPS.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.NOCIL_04112025_Motilal Oswal