Is anyone having NOCIL concall details?
You can listen on Research Bytes. The mobile app is not working but website works fine on Microsoft Edge or IE (doesn’t work on Chrome).
Regarding the increasing in the pledging, one reason is that since the share price dropped significantly from march 2018 level, it is required to increase the pledged shares to keep the overall value of collateral at the same level.
Further drop in the share price may require additional pledging too, while increase in share price may not necessary require pledging level to drop and it is normally as per the sanctioned terms of the loans/facilities availed and lies at the discretion of the creditor.
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Let me ask you a simple question, company is almost debt free, so for what this pledging is?
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Pledging is by promoter not the company.Promoter availed cash loan from someone by giving his shares as a surety and that someone can own/sell the shares in case promoter fails to repay the loan.
I think the business has been divided between the mafatlal group. The pledge is via mafatlal industries and not the arvind mafatlal group which got the nocil company
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That is the correct answer
Decision on ADD’s of Rubber chemicals are supposed to be announced this month.
Anyone aware of the dates ?
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23rd July it will expire (Source: http://dgtr.gov.in/sites/default/files/Duties_expiring_in_2019.xlsx)
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Share pledge is by Mafatlal Ind is to avail loan. And the financial position of Mafatlal Ind is very stressed. Main concern seems, in case of default by Mafatlal Ind and share pledge sale, could have huge negative impact on Nocil.
Not able to appreciate, obsession of Hrishikesh Mafatlal group with Mafatlal Ind. Any clue?
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I don’t know what the outcome of such litigation might be. But this does show that the rubber chemical industry is not good at lobbying and achieving their means. Also the govt instead of being pro active in preventing local industry is now giving counter arguement. Not a very healthy scenario. If the anti dumping duty doesn’t come then it has to be seen how much are the sales and more importantly margin affected.
anyways anti dumping duty was the big if before investing in nocil… ( not that big as they have only around 30% of their products affected ) but with overall margin compression this might make things looks further bad .
Regards
Divyansh
Disc: invested
Might not add if the anti dumping duty plays a spoil sport
2019 AGM notes.
- The undertone of the management was very cautious unlike last year.
- Bracing for challenging times ahead. It is likely to continue for a while.
- The hearing on ADD is on 7th Aug. Currently 6 out of 20 products are covered. If the ADD is removed then there will be significant dent on the profitability of the company.
- Pledge - Other promoter companies have pledged their holdings for taking loans in their respective businesses.
- The capacity utilisation down from 92% to 85%. It will reduce in coming quarters as the company is seeing volume degrowth and also new capacities will come online.
- Promoter stake: Not looking to increase stake.
- Export volume growth not likely to be more than 8-10% as there are challenges in international market as well. Last year was 24%.
Discl.: No holdings
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Very novice questions on NOCIL
- Can the products of NOCIL goes out of Market in next 5 yrs—
I think …no…the reason is Tyres needed even in Eletric vehicles comes
- Do you see any problems with NOCIL Management ( Any time defaulters? or corporate govenrance in last 10 yrs)…
I dont see any thing from past 10 yrs…( Future is not guranteed…)
- Do they need extra money to keep running this company –
Not required
- Can they grow in next 5 yrs
Yes , the reason is lot of Type manufactures capex …did last 3 yrs…so eventually high sales down the line…in next 5 yrs…This is my assumption
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Is Anti Stamping duty removal is threat to NOCIL…yes…to certain extent …that dents Margins …if one fine with 20 % margin business…i think then no issues
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Is their pledging concerns…Yes…becz dont know what they are doing with that money
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Do you have any other company with same level of comfort in same business…
at least I dont know as of now at this level of comfort…
- Can this automobile down trend continues for next 1 or 2 yrs…
Personally i dont think so…this has to come into blues in 1 yr…( again my assumption…) At least for tyre companies…
- do you have any other concerns…for next 3 to 5 yrs ( with available current info…my assumption is that…there are no concerns for 3 to 5 yrs to grow at least minimum 10 % per year)
Correct me if any of my answers are wrong…or all my answers also wrong…correct me…open my thoughts…if i am going in wrong direction…
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anyone attended concall today?
I think, decision on ADD is today … Any idea on outcome ?
No news…which probably means the court hearing did not happen. Might have got deferred to another date (just guessing). Company says the ADD continues if there is no decision, so this might just be the strategy, knowing how the court system in our country is.
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