Info from a major Chinese Competitor ( Sunsine)
Source : Last quarter result PPT
Waiting for current quarter results for them, as amount of details provided are very good.
Major Raw Materials:
Margins (NPM) are much better as compared to NOCIL. Though they havent provided breakup of Labour costs. However one of the major contributors is Tax incentives from Chinese Govt. They have provided them with only 15 % tax till Dec-2019. Nocil pays around 33 %.
With such incentives they can easily compete in India even with ADD in place
Decent Capacity Additions:
- Available at much cheaper valuation
PE PB P/S
Sunsine 4.32 1.26 0.80
Nocil 15.51 2.55 2.76
Why will FII prefer NOCIL over Sunsine ? (food for thought)
- Nice stock price correlation between the two competitors:
Disc : Invested and Nocil is one of the highest allocation in my PF.