NOCIL Limited (NOCIL) AI Stock Analysis

• Market Cap: ₹22.12B
• Dividend Yield: 1.27%
• Average Volume (3M): 23.58K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 1.26
• Revenue Growth: -8.20%
• EPS Growth: -55.26%
• Country: IN
• Employees: 716
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.85
• Shares Outstanding: 167,024,930
• 10 Day Avg. Volume: 31,668
• 30 Day Avg. Volume: 23,576
• PEG Ratio: -1.27
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 2.13
• P/FCF Ratio: -30.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹135.00 ▼(-11.21% Downside)

The score is held back primarily by weak technicals (downtrend with bearish momentum) and cash flow concerns (negative free cash flow and weak cash conversion). A strong, low-debt balance sheet provides meaningful support, but valuation is not especially compelling given the elevated P/E and recent margin/revenue pressure.

Positive Factors

Low leverage / strong balance sheet

Exceptionally low leverage and a high equity ratio give NOCIL durable financial resilience. This conservative capital structure supports cyclical resilience, capacity to fund capex or M&A, and preserves liquidity for multi-quarter strategic initiatives without raising costly external financing.

Long-term contracts & product breadth

A broad specialty-chemicals portfolio plus long-term tire-industry contracts create sticky revenue streams and high switching costs. This structural customer linkage supports predictable demand, aids export diversification, and underpins steady order visibility over multiple quarters.

Healthy gross margins

Sizable gross margins reflect technical product differentiation and manufacturing scale in specialty rubber chemicals. Sustained gross profitability provides a buffer versus raw material swings, enabling investment in R&D and quality improvements that preserve competitive positioning over time.

Negative Factors

Declining top-line and EPS

Falling revenue and sharply negative EPS growth signal weakening demand or margin pressure. Persistent declines reduce operating leverage, constrain reinvestment capacity, and risk eroding customer relationships and supplier terms if not reversed over coming quarters.

Negative free cash flow and weak conversion

Consistent negative free cash flow and poor cash conversion undermine financial flexibility. Over time this limits internal funding for maintenance capex, R&D, or working capital, increasing reliance on external financing and raising risk during industry or cyclical downturns.

Declining return on equity

A falling ROE indicates deteriorating capital efficiency and weaker shareholder returns. If sustained, lower ROE can constrain the company's ability to attract investment, fund organic growth, or justify new capacity additions, signaling structural profitability pressure.

NOCIL Limited Business Overview & Revenue Model

Company Description

NOCIL Limited engages in the manufacture and sale of rubber chemicals for tire and other rubber processing industries in India. The company offers accelerators, anti-degradants, antioxidants, pre vulcanization inhibitors, and post vulcanization stabilizers, as well as solutions that improves thermal stability of cross links in rubber products. It also exports its products. NOCIL Limited was incorporated in 1961 and is headquartered in Mumbai, India.

How the Company Makes Money

NOCIL generates revenue primarily through the sale of its rubber chemicals to manufacturers in the tire and rubber industries. The company has established key revenue streams from its diverse product offerings, which include accelerators, antioxidants, and other specialty chemicals that improve the quality and longevity of rubber products. NOCIL benefits from long-term contracts with major tire manufacturers, providing a stable income source. Additionally, the company explores export opportunities to expand its market reach, contributing to its earnings. Strategic partnerships with global companies and investments in research and development also play a significant role in enhancing its product offerings and securing a competitive edge in the market.

NOCIL Limited Financial Statement Overview

Summary

Strong balance sheet with very low leverage supports stability, but income statement trends show declining revenue and weaker margins, and cash flows are a key risk due to negative free cash flow and weak cash conversion.

Income Statement

NOCIL Limited has shown a volatile revenue trend over the years with a significant decrease in the latest year. The gross profit margin remains healthy at approximately 42.7% for 2025, but the net profit margin has decreased to 7.4% from 9.3% in 2024. EBITDA margin has also seen a decline. The company needs to address the drop in revenue and profitability margins to enhance its income statement performance.

Balance Sheet

The balance sheet of NOCIL Limited indicates strong equity with a high equity ratio of 85.7% in 2025. The debt-to-equity ratio is extremely low at 0.006, suggesting minimal leverage and a conservative capital structure. However, the return on equity has decreased to 5.8% in 2025 from 7.8% in 2024, indicating declining efficiency in generating profits from shareholders' equity.

Cash Flow

The cash flow position of NOCIL Limited shows a concerning trend with negative free cash flow in recent years. The operating cash flow to net income ratio is very low, suggesting challenges in converting profits into cash. The decline in free cash flow growth rate is a critical area that needs improvement to ensure better liquidity and financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.57B	13.93B	14.37B	16.17B	15.61B	9.13B
Gross Profit	5.46B	5.95B	5.88B	7.29B	7.02B	4.08B
EBITDA	1.51B	1.37B	2.34B	2.59B	2.89B	1.45B
Net Income	930.80M	1.03B	1.33B	1.49B	1.76B	884.10M
Balance Sheet
Total Assets	0.00	20.57B	20.15B	18.57B	18.30B	16.15B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.73B	3.73B	2.30B	297.80M	1.20B
Total Debt	0.00	103.00M	131.30M	97.90M	55.20M	56.10M
Total Liabilities	-17.62B	2.95B	3.17B	3.05B	3.85B	3.30B
Stockholders Equity	17.62B	17.62B	16.99B	15.52B	14.45B	12.85B
Cash Flow
Free Cash Flow	0.00	-969.90M	1.66B	2.52B	-664.40M	666.10M
Operating Cash Flow	0.00	255.60M	2.01B	2.82B	-302.20M	935.60M
Investing Cash Flow	0.00	-369.50M	-773.60M	-2.17B	311.60M	-621.00M
Financing Cash Flow	0.00	-502.10M	-553.00M	-537.70M	-336.00M	2.70M

NOCIL Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 152.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NOCIL, the sentiment is Negative. The current price of 152.05 is above the 20-day moving average (MA) of 136.52, above the 50-day MA of 151.46, and below the 200-day MA of 175.45, indicating a bearish trend. The MACD of -6.39 indicates Negative momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NOCIL.

NOCIL Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCL	75 Outperform	₹25.62B	26.12	―	0.65%	-10.12%	-22.38%
ROSSARI	70 Outperform	₹31.23B	22.68	―	0.09%	15.47%	-1.72%
INDIANHUME	68 Neutral	₹20.08B	3.52	―	1.00%	0.25%	452.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NOCIL	59 Neutral	₹22.12B	35.07	―	1.27%	-8.20%	-55.26%
GUJALKALI	59 Neutral	₹33.48B	22,350.49	―	3.11%	10.35%	―
TIRUMALCHM	41 Neutral	₹22.61B	-12.77	―	0.43%	-11.11%	-340.74%