Oriental carbon and chemicals is a Duncan Goenka group company headquartered at Kolkatta .It is one of the largest producer of Insoluble sulfur in India with the brand name Diamond Sulf. Insoluble sulfur is mainly used in automotive tyre industry .It also used in industries such as conveyer and transmission belts, hoses and other rubber products that require green tack and adhesion, extended compound storage and prevention of premature vulcanization.It also produces sulfuric acid as a bi-product.OCCL recently increased the production capacity of Insoluble sulfur by 15% by adding some balancing equipments in their existing plants.Company is also planning to start a new plant in Mundra SEZ.Most of the consumers of the company showing growth momentum which will help OCCL to perform better in near future. Company has posted a net profit of 20 crore in nine month period of this FY as against a profit of 8 crore in last full year ,and expected to post a full year EPS close to Rs.25/-.OCCL already declared two interim dividends so far in this year. At CMP of Rs.93/- company is trading at a P/E of below 4 on expected full year EPS ,which looks very cheap
Friday, March 12, 2010
ORIENTAL CARBON AND CHEMICALS
Oriental carbon and chemicals is a Duncan Goenka group company headquartered at Kolkatta .It is one of the largest producer of Insoluble sulfur in India with the brand name Diamond Sulf. Insoluble sulfur is mainly used in automotive tyre industry .It also used in industries such as conveyer and transmission belts, hoses and other rubber products that require green tack and adhesion, extended compound storage and prevention of premature vulcanization.It also produces sulfuric acid as a bi-product.OCCL recently increased the production capacity of Insoluble sulfur by 15% by adding some balancing equipments in their existing plants.Company is also planning to start a new plant in Mundra SEZ.Most of the consumers of the company showing growth momentum which will help OCCL to perform better in near future. Company has posted a net profit of 20 crore in nine month period of this FY as against a profit of 8 crore in last full year ,and expected to post a full year EPS close to Rs.25/-.OCCL already declared two interim dividends so far in this year. At CMP of Rs.93/- company is trading at a P/E of below 4 on expected full year EPS ,which looks very cheap
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Sir,
ReplyDeleteThere Promoter increased there holdings. And frequency of replacement of tyres will be more, which led to manufacture more tyres and Insoluble sulfur benefit lot on that front.
Thanks for Recommending :)