Oriental Carbon & Chemicals Ltd (OCCL) AI Stock Analysis

• Market Cap: ₹1.25B
• Dividend Yield: 10.99%
• Average Volume (3M): 6.79K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.99
• Revenue Growth: -76.65%
• EPS Growth: -76.77%
• Country: IN
• Employees: 419
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): N/A
• 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: 67 Neutral
• Price Target: ₹138.00 ▼(-4.73% Downside)

The score is driven mainly by strong financial stability and healthy profitability, supported by a reasonable P/E valuation. This is tempered by weaker cash flow trends and a mixed-to-bearish technical picture with negative momentum and price below key longer-term moving averages.

Positive Factors

Strong balance sheet

Very low leverage and a high equity ratio provide durable financial flexibility. This reduces refinancing and interest-rate risk, supports capital allocation for maintenance or selective expansion, and helps the company withstand cyclical downturns in the tyre sector over months.

Specialized product and customer stickiness

Supplying insoluble sulphur is a niche, specialized business with long product qualification cycles and entrenched customer relationships. That creates switching frictions, recurring sales to tyre makers and structural barriers that support steady volumes and pricing over multi-month horizons.

Healthy profitability margins

A near-10% net margin shows the business can sustain profitability despite input and volume volatility. Durable margins support internal funding for operations, maintenance capex and selective reinvestment, helping preserve enterprise stability across industry cycles.

Negative Factors

Steep recent revenue decline

A very large year-on-year revenue drop signals significant volume loss or contract weakness, undermining scale economics. Reduced throughput can depress margins and utilization for several quarters, making operational recovery and normalization of profitability uncertain in the near term.

Weaker cash conversion and falling free cash flow

Lower cash conversion and a decline in free cash flow constrain the company's ability to self-fund maintenance capex, buffer working capital or pursue strategic initiatives. Even with positive FCF, weaker conversion raises liquidity sensitivity during cyclical troughs.

Exposure to cyclical tyre demand and input costs

Revenue and margins are materially linked to the cyclicality of tyre manufacturing and volatile input/energy costs. That structural exposure can cause prolonged swings in volumes and profitability, reducing predictability of earnings and cash flow across industry cycles.

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 a high equity ratio (~81.53%), plus solid profitability (net margin ~9.63%). Offsetting this are a recent revenue decline and weaker cash generation, with free cash flow down and a 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	1.08B	1.08B	4.64B	4.65B	4.44B	3.74B
Gross Profit	247.89M	247.89M	2.78B	2.86B	2.36B	2.39B
EBITDA	156.01M	156.01M	1.07B	1.11B	933.83M	1.29B
Net Income	107.16M	104.22M	461.40M	486.37M	430.71M	789.97M
Balance Sheet
Total Assets	3.27B	3.27B	8.96B	8.86B	8.65B	8.14B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.02B	1.32B	1.41B	1.18B	1.62B
Total Debt	30.53M	38.48M	1.39B	1.67B	1.89B	1.85B
Total Liabilities	310.72M	310.72M	2.32B	2.60B	2.86B	2.66B
Stockholders Equity	2.66B	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: Neutral
• Last Price: 144.85
• 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:OCCL, the sentiment is Neutral. The current price of 144.85 is above the 20-day moving average (MA) of 123.20, above the 50-day MA of 128.02, and below the 200-day MA of 176.11, indicating a neutral trend. The MACD of -3.77 indicates Negative momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 48.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	67 Neutral	₹1.25B	11.71	―	10.99%	-76.65%	-76.77%
CHEMBOND	66 Neutral	₹2.00B	15.69	―	1.11%	-37.34%	-45.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KESORAMIND	52 Neutral	₹2.75B	0.05	―	―	-91.62%	―
NAGAFERT	48 Neutral	₹2.91B	-11.76	―	―	-100.00%	-101.18%
DIAMINESQ	43 Neutral	₹2.42B	-49.78	―	0.38%	―	―