Trending stock: NOCIL trades close to its life-highs

NOCIL is the largest rubber chemical manufacturer in India.

With frontline indices such as Sensex and Nifty trading at life-highs, it is normal to expect several listed stocks to also trade closer to their life-highs if not make a fresh one for themselves.  

National Organic Chemical Industries Ltd (NOCIL), a part of Arvind Mafatlal Group is one such company that can be expected to trade closer to or even cross the life-highs it made for itself in January 2018 (approximately Rs 228 per share) in the coming months. Trading at nearly Rs 206 per share, the stock is trading just 11 per cent shy of its all-time high. 

NOCIL has outperformed on bourses and is expected to outperform frontline indices, owing to its expansion plans along with ramp-up in capacity utilisation, robust volume growth on the back of a pick-up in demand of the tyre industry as well as expansion of margin with a focus on specialised rubber chemicals. 

With net profit growth pegged at 30+ per cent over FY21-23E and revenue expected to grow by more than 20 per cent, NOCIL can be an outperformer in this market condition, which rewards quality stocks backed by 'good earnings'. NOCIL is the largest rubber chemical manufacturer in India.  

Meanwhile, the company’s stock is up by nearly 38 per cent on a YTD basis while in one year, it is up by 137 per cent.