Chemical stock under ₹100 jumps up to 18% after govt imposes anti dumping duty

The shares of a microcap chemical company that is engaged in the business of manufacturing and selling of insoluble sulphur after the Government of India recommended an anti-dumping duty on imports of insoluble sulphur. 

Price Action

The shares of OCCL Ltd, with a total market capitalization of Rs 396.36 Crore on Tuesday, reached an Intraday high of Rs 81 per share gaining around 17.5 percent in today’s trade. As of 2:30 pm, the shares were trading at Rs 80.24 per share which was 16.4 percent higher than the previous close of Rs 68.92. 

What Happened

The company stated in an exchange filing dated March 11, 2025 that the Directorate General of Trade Remedies (DGTR) has recommended that an anti-dumping duty be imposed on imports of the company’s product, “Insoluble Sulphur,” from China and Japan. 

The official announcement was made in the government Gazette on March 10, 2025. The anti-dumping duty will only come into effect after it is approved by the relevant authorities.

The company expects that this duty will positively impact its performance by potentially reducing unfair competition from these imports. However, it is difficult to predict the exact impact until the duty is officially implemented because the affected countries might take action in response, and other global factors could influence the situation.

Client Base

The company has strong customer base comprising of brands like Apollo Tyres, MRF, CEAT, Sumitomo Rubber Industries, JK Tyre, Bridgestone, and Goodyear.

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Product Portfolio

The company’s product portfolio comprises primarily of Insoluble Suphur with 86 percent and Sulphuric Acid & Oleums with 14 percent. Insoluble Sulphur, sold under the brand name “DIAMOND SULF,” is available in various grades to meet the diverse compounding needs of the tire industry. Additionally, the company manufactures both Commercial Grade and Battery Grade Sulphuric Acid and Oleums.

Financials

The company reported a decline of 7.1 percent on a sequential basis from Rs 103.87 Crore in Q2FY25 to Rs 96.48 Crore in Q3FY25. Their Net Profit also declined by 30 percent sequentially from Rs 7.51 Crore to Rs 5.25 Crore over the same period. 

About OCCL Ltd

The company is a market leader in the production of Insoluble Sulphur under the AG Ventures Group. It operates state-of-the-art manufacturing facilities in Haryana and Gujarat. The company holds a 60 percent share of the domestic market and a 10 percent share globally, maintaining strong relationships with over 40 customers across 21 countries. 

OCCL has consistently expanded its Insoluble Sulphur production capacity, growing from 3,000 MT in 2000 to 39,500 MT as of December 2024.

Written By Adhvaitha Nayani

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