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NOCIL surges nearly 20% after anti-dumping duty on rubber chemical imports
NOCIL surges nearly 20% after anti-dumping duty on rubber chemical imports
About this update from Nocil Limited
Shares of NOCIL jumped nearly 20 percent on Monday after the government imposed anti-dumping duties on imports of Sulphenamides Accelerators from China, the US and the European Union for a period of five years.The stock was trading at Rs 190.25, up 19.64 percent, and was among the top gainers on the exchanges.The rally comes after the Directorate General of Trade Remedies (DGTR) imposed anti-dumping duties on the key rubber chemical, a move that is expected to benefit domestic manufacturers. The Commerce Ministry had earlier notified the duties in March.NOCIL, India's largest rubber chemicals manufacturer, produces a range of Sulphenamide Accelerators under its Pilcure brand. These chemicals are widely used in the vulcanisation process in the rubber and tyre industry and are considered critical inputs for tyre production.The anti-dumping duty is aimed at protecting domestic manufacturers from cheaper imports and could improve pricing power and market share for local players such as NOCIL.According to the company's March-quarter shareholding pattern, promoters held a 33.76 percent stake in NOCIL. Domestic mutual funds owned 7.1 percent, while foreign portfolio investors held 4.5 percent. Retail investors accounted for 26.2 percent of the company's shareholding.Brokerage sentiment on the stock remains mixed. Of the seven analysts covering NOCIL, three have a "Buy" rating, three recommend "Hold", while one has a "Sell" rating.