Oriental Carbon & Chemicals Ltd (OCCL) AI Stock Analysis

• Market Cap: ₹1.17B
• Dividend Yield: 10.99%
• Average Volume (3M): 6.79K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.91
• Revenue Growth: -76.65%
• EPS Growth: -76.77%
• Country: IN
• Employees: 419
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.20
• Shares Outstanding: 9,990,092
• 10 Day Avg. Volume: 6,872
• 30 Day Avg. Volume: 6,789
• PEG Ratio: -0.20
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 300.56
• 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: 72 Outperform
• Price Target: ₹130.00 ▼(-10.25% Downside)

The score is driven primarily by strong financial stability (very low leverage and high equity backing) and solid profitability, tempered by weakening revenue and pressured cash flow generation. Valuation is supportive due to the very high dividend yield and a moderate P/E, while technicals are mixed with improving short-term trend but a still-weak longer-term setup.

Positive Factors

Very low leverage / strong balance sheet

Extremely low leverage and a high equity ratio provide durable financial resilience, lowering bankruptcy and refinancing risk. This structural strength supports steady operations through cycles, funds strategic capex or certifications, and underpins stable supplier/customer confidence over months.

Niche specialty product and customer qualification

Producing insoluble sulphur for tyres is a specialized, qualification-driven business with high switching costs for customers. This creates durable customer relationships and barriers to entry, supporting steady demand from the tyre/rubber value chain and providing long-term commercial stickiness.

Sustained profitability margin

A near-10% net margin indicates structural ability to manage manufacturing and input costs in a commoditized chemical segment. Sustained margins allow reinvestment, servicing of working capital, and dividend distributions even if volumes moderate, supporting operational durability.

Negative Factors

Severe revenue decline

A roughly 75% year-over-year revenue drop is a material structural risk, eroding scale economics and pricing leverage. If volumes or contract wins do not recover, fixed-cost absorption and long-term customer relationships may weaken, pressuring margins and growth prospects for multiple quarters.

Weak cash conversion / falling free cash flow

Subpar cash conversion and a marked fall in free cash flow reduce internal funding for capex, working capital and strategic initiatives. Over a sustained period this constrains reinvestment or dividend policy and increases sensitivity to external financing despite low leverage.

Low return on equity

ROE near 4% implies limited effectiveness converting equity into profits despite a strong capital base. Persistently low ROE can indicate underutilized assets or weak pricing power, reducing long-term shareholder value creation and signaling the need for strategic initiatives to lift returns.

Oriental Carbon & Chemicals Ltd Business Overview & Revenue Model

Company Description

Oriental Carbon & Chemicals Limited engages in the manufacture and sale of insoluble sulphur worldwide. The company operates through three segments, Chemicals, Investments, and General Engineering Products. It offers insoluble sulphur under the Diamond Sulf brand. The company also provides commercial and battery grade sulphuric acid, and oleum for use in the dehydrating agent, catalyst, and active reactant in chemical processes, solvents, and absorbents; and high purity grades in storage batteries, rayon, dye, acid slurry, and pharmaceutical applications, as well as commercial grades in the steel, heavy chemical, and super-phosphate industries. In addition, it offers off-highway tire accessories, pneumatics, hydraulics, and valve automation systems. The company was incorporated in 1978 and is based in Noida, India.

How the Company Makes Money

Oriental Carbon & Chemicals Ltd generates revenue primarily through the sale of carbon black products to various industries, including automotive, rubber, and plastics. The company has established key revenue streams through long-term contracts with major tire manufacturers and rubber product companies, which provide a steady demand for its products. Additionally, OCCL benefits from economies of scale in production, allowing it to maintain competitive pricing while ensuring profitability. The company also explores opportunities for growth through strategic partnerships and collaborations with other firms in the specialty chemicals sector, enhancing its market reach and product offerings.

Oriental Carbon & Chemicals Ltd Financial Statement Overview

Summary

Strong balance sheet with very low leverage (debt-to-equity 0.01) and high equity ratio (~81.53%), supporting financial stability. Profitability is solid with a net profit margin of ~9.63%, but revenue has declined versus the prior year and free cash flow dropped materially, with modest cash conversion (operating cash flow to net income ~0.60).

Income Statement

The income statement reveals a recent decline in total revenue from the previous year, indicating potential challenges in maintaining growth. However, the company has demonstrated strong profitability with a notable net profit margin of approximately 9.63% in 2025. This reflects a capacity to manage costs effectively despite revenue fluctuations.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.01, pointing to robust financial stability and low leverage. The equity ratio is impressive at approximately 81.53%, showcasing substantial asset backing. The return on equity stands at about 3.91%, suggesting moderate returns for shareholders.

Cash Flow

The cash flow statement indicates a significant drop in free cash flow, highlighting potential liquidity issues. The operating cash flow to net income ratio of approximately 0.60 signals a need for improved cash conversion. However, the company still maintains positive free cash flow, ensuring ongoing operational funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.04B	1.08B	4.64B	4.65B	4.44B	3.74B
Gross Profit	717.69M	247.89M	2.78B	2.86B	2.36B	2.39B
EBITDA	421.18M	156.01M	1.07B	1.11B	933.83M	1.29B
Net Income	240.40M	104.22M	461.40M	486.37M	430.71M	789.97M
Balance Sheet
Total Assets	0.00	3.27B	8.96B	8.86B	8.65B	8.14B
Cash, Cash Equivalents and Short-Term Investments	885.16M	1.02B	1.32B	1.41B	1.18B	1.62B
Total Debt	0.00	38.48M	1.39B	1.67B	1.89B	1.85B
Total Liabilities	-2.92B	310.72M	2.32B	2.60B	2.86B	2.66B
Stockholders Equity	2.92B	2.66B	6.37B	6.02B	5.61B	5.33B
Cash Flow
Free Cash Flow	0.00	5.47M	762.25M	826.07M	-18.21M	66.04M
Operating Cash Flow	0.00	62.43M	971.26M	1.05B	529.51M	912.17M
Investing Cash Flow	0.00	104.17M	-425.67M	-540.00M	-330.82M	-1.29B
Financing Cash Flow	0.00	-153.16M	-536.27M	-522.72M	-202.52M	160.51M

Oriental Carbon & Chemicals Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 144.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:OCCL, the sentiment is Negative. The current price of 144.85 is above the 20-day moving average (MA) of 126.91, above the 50-day MA of 128.92, and below the 200-day MA of 176.97, indicating a bearish trend. The MACD of -5.12 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 33.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:OCCL.

Oriental Carbon & Chemicals Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCCL	72 Outperform	₹1.17B	10.94	―	10.99%	-76.65%	-76.77%
CHEMBOND	66 Neutral	₹1.98B	15.51	―	1.11%	-37.34%	-45.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KESORAMIND	60 Neutral	₹2.96B	0.05	―	―	-91.62%	―
NAGAFERT	48 Neutral	₹2.94B	-11.91	―	―	-100.00%	-101.18%
DIAMINESQ	43 Neutral	₹2.47B	-49.93	―	0.38%	―	―