NOCIL Jumps 20% as Govt Shields Rubber Chemical Makers
Shares of NOCIL Ltd locked their 20% upper circuit of Rs 190.82 on 22 June after the government imposed anti-dumping duties on imports of Sulphenamide Accelerators from China, the United States and the European Union for a period of five years. The Directorate General of Trade Remedies, which is the... The post NOCIL Jumps 20% as Govt Shields Rubber Chemical Makers appeared first on Equitypandit.
Shares of NOCIL Ltd locked their 20% upper circuit of Rs 190.82 on 22 June after the government imposed anti-dumping duties on imports of Sulphenamide Accelerators from China, the United States and the European Union for a period of five years.
The Directorate General of Trade Remedies, which is the government body that investigates unfair import pricing, found that exporters from China, the US and the EU were selling Sulphenamide Accelerators in India at artificially low prices.
This undercut domestic producers and kept local selling prices suppressed. The investigation confirmed that the landed value of imports stayed below the domestic industry’s cost of sales throughout the review period.
As a result, anti-dumping duties ranging from $75 per metric tonne to $1,748 per metric tonne have now been imposed, varying by country and producer.
These will stay in force for five years unless the government changes them earlier. NOCIL is the biggest beneficiary here.
The Mumbai-based company, part of the Arvind Mafatlal Group, is India’s largest manufacturer of rubber chemicals and has been in the business for over four decades. It produces Sulphenamide Accelerators under its Pilcure brand.
These chemicals are used in the tyre and rubber industry to speed up the vulcanisation process, which is essentially the method that makes rubber stronger and more durable.
Simply put: NOCIL makes a product that just got price protection from cheaper foreign competition. That is a direct boost to the company’s pricing power.
On recent financials, NOCIL reported net profit of Rs 17 crore in Q4 FY26, down 18.22% year on year, while net revenue from operations fell 2.74% to Rs 330.35 crore over the same period.
NOCIL closed at Rs 190.82 on NSE, up 20%, locked at the upper circuit for the session.
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The post NOCIL Jumps 20% as Govt Shields Rubber Chemical Makers appeared first on Equitypandit.
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