Oriental Carbon and Chemicals Ltd

(chintri) #267

Not really sure how much it can hurt.

(chintri) #268

recent research report published by centrum broking which is available on moneycontrol.com under the stock oriental carbon and chemicals shows that this occl and Omkar are competeters. How’s this possible? Any view?

Discolure : invested in both Omkar speciality and occl

(kiran) #269

Both are into specialty chemicals.Probably thats why they were mentioned as competitors.
Dont think they have any common products though

(Girish) #270

OCCL and Omkar are totally different animals. One is selling chemical to tire companies and other sells APIs and intermediates to mostly Pharma companies. OCCL has (mostly) single product while Omkar has 100+ products.
OCCL does have structural advantage in market dominated by three companies where Eastman is price setter and dominant market leader (75%). OCCL enjoys the price set by Eastman. Very few companies can have such structural advantage in global market. The tire companies won’t let OCCL die. They need alternative supplier to Eastman.

discl: Hold both OCCL and Omkar

(Ayush Mittal) #271

OCCL starts commercial production much ahead of schedule - http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/642CD959_8E93_4E79_A3A8_F1D80BDAC23A_154351.pdf

(shikhar mundra) #273

Q3 FY 17 concall notes

  1. Global demand for IS rising at 2-4 percent CAGR. hence incremental demand to be about 60000 MTPA by 2022.
  2. The three companies( Eastman, Shikoku , OCCL) are putting up their capacities in line with the incremental demand. Hence dont see any price wars or over capacity building up in the future. We are not snatching any market share from our competitors, neither we need to fear the big guy Eastman Chemicals as it already has 70 percent MS in the world.
  3. Exports form 70 percent of sales, will go up as our new capacity will cater to foreign demand. Will be penetrating China, North America.
  4. Domestic demand of IS is increasing at a double digit rate, we capture 50-60 percent Market Share here , rest is Eastman Chemicals.
  5. Inspite of greater growth rate of demand in India than global we are increasing our exports since we want to expand in new geographies.
  6. Phase 1 of the project commenced production since Dec 20 , 2016. Phase 2 will commence production from Q 2 FY19. By the end of this calendar year we see the full run rate of sales of phase 1.
  7. Performance this quarter was as expected , not much impact of demonetization as 70 percent exports.
  8. We plan to enter into new line of business for diversification post expansion.
    Much details on this have not been decided. This will be interesting to watch . It looks like as per the estimated incremental demand and the capacities being put up by all the three players there wont be much scope left for growth in IS business post expansion . Hence they will be looking to get into a new line of business.(my personal view)
  9. Finance cost to be around 1.5 cr quartely,from next quarter onwards as they were being capitalized till now for phase 1.
  10. phase 2 capex of 60 cr will be incurred in FY18.
  11. when asked about Eastman making technological changes and trying to lower its cost , they said they are also doing the same and continously working on upgrading technology.
  12. can pass on increase in cost of RM to product prices.
  13. Their subsidiary scharder duncan to turn profittable this year.

Disc - Invested

(Vivek) #274

Promoter has sold 100K shares

(abhimakk) #275

It is just one promoter and total shareholding is down from 51.04% to 50.07%.

It will be interesting to watch if there is any wider pattern to this selling or just one off.

(Vivek) #276

@abhimakk it will be interesting to see who has bought it as normally these kinds of volume dont happen in the counter

(atishay1) #277

Maybe some pre-agreed dilution with DII / FII stock is not so liquid to absorb 1 lac shares at one go.

(abhimakk) #278

Agreed, lets see who bought and it could be part of a deal as mentioned by @atishay1

Also post results, Centrum broking has raised the TP to 1090 (25% upside). I am hopeful to see this company grow post all the capex plans in next few quarters.

(Ayush Mittal) #279

Link to Centrum research report - http://www.moneycontrol.com/mccode/news/article/article_pdf.php?autono=8546021&num=0

(Vivek Gautam) #280

ICICI DIRECT comes with a research note on OCCL & price target of 1125.

(Furkan Alam) #281

@ayushmit - you are mentioned in the post…

(Vivek Gautam) #282

OCCL making great moves as predicted.one of the few cos which is executing well.

(Saji John) #283

Sales up 19% at 82cr
EBITDA up 31%
EBITDA % 30.2% vs 27.5%
PAT down 23% at 9cr
@Vivek_6954 PAT down is it because of increased deferred tax payment?

(kris2727) #284

Yes Saji…Results are good infact

(Ayush Mittal) #285

Q4FY17 concall:
We are delighted that we commenced the production at the new plant ahead of schedule.
Expect phase 2 to be commissioned by Q2FY19.
Demand for insoluble sulphur has increased and we expect it to improve with better tyres for M&H vehicles.
Expect to grow in America & China.
Deferred tax is on ac of opening of new plant. As per the law, we have to provide the higher taxation though the actual payout is still at the MAT rate.
We are seeing obvious benefits of operational leverage at Mundra.
Intend to maintain div payout at 20%.
New plant has done good utilization in this quarter. Growth is mainly from growth in volumes, pricing is stable. New customers have also been added
The subsidiary should see improvement going forward. There have been sevral write-offs done in this qtr.

(distilled_feni) #287

Is he referring to OCCL ?

(Amit) #288

I think he was referring to OCCL but not directly. Do we have any other listed major company who supplies key raw materials to tyre industries?