Stock Performance and Market Context
On 23 January 2026, Nocil Ltd. touched an intraday low of Rs.128.05, closing the day down by 3.19%. This decline extended the stock’s losing streak to two consecutive sessions, resulting in a cumulative return drop of 6.91% over this period. The stock’s performance notably lagged behind the specialty chemicals sector, underperforming by 2.67% on the day.
Technical indicators reveal that Nocil is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish sentiment. This technical positioning contrasts with the broader market, where the Sensex, despite a negative close at 81,563.49 (-0.9%), remains above its 200-day moving average, although it is trading below its 50-day average.
Over the past year, Nocil Ltd. has delivered a total return of -44.07%, significantly underperforming the Sensex, which posted a positive return of 6.67% during the same period. The stock’s 52-week high was Rs.240.05, underscoring the steep decline it has experienced.
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Financial Performance and Valuation Metrics
Nocil Ltd.’s recent financial disclosures highlight a challenging environment. The company reported a decline in net sales by 4.66%, contributing to what has been characterised as very negative results for the quarter ended September 2025. Operating cash flow for the year stood at a low Rs.24.03 crores, while profit before tax excluding other income for the quarter was Rs.8.34 crores, reflecting a sharp fall of 52.9% compared to the average of the previous four quarters.
Net profit after tax for the quarter was Rs.12.12 crores, down 47.9% relative to the preceding four-quarter average. These figures underscore a contraction in profitability and cash generation capacity, which have weighed on investor sentiment.
Return on equity (ROE) remains subdued at 3.6%, while the stock trades at a price-to-book value of 1.3, indicating a relatively expensive valuation compared to its historical averages and peer group. This premium valuation, despite deteriorating earnings, has contributed to the stock’s downgrade to a Strong Sell rating, with a Mojo Score of 19.0 as of 20 December 2024, an adjustment from its previous Sell grade.
Comparative Performance and Shareholding Structure
Over the last three years, Nocil Ltd. has consistently underperformed the BSE500 index, with annual returns falling short of the benchmark in each period. The stock’s cumulative one-year return of -44.07% contrasts sharply with the broader market’s positive trajectory, highlighting the company’s relative weakness within the specialty chemicals sector.
On the capital structure front, Nocil maintains a low debt-to-equity ratio, averaging zero, which suggests a conservative leverage position. The majority of the company’s shares are held by non-institutional investors, indicating a shareholder base dominated by retail or promoter holdings rather than large institutional investors.
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Sector and Market Dynamics
The specialty chemicals sector, in which Nocil operates, has faced mixed conditions, with some indices such as NIFTY Realty also hitting 52-week lows on the same day. The broader market environment has been volatile, with the Sensex opening flat but declining sharply by 772.45 points during the session. Despite this, the Sensex’s 50-day moving average remains above its 200-day average, suggesting that the broader market retains some underlying strength.
Within this context, Nocil’s stock price movement and financial results reflect company-specific pressures rather than sector-wide trends alone. The stock’s persistent trading below all key moving averages further emphasises the prevailing negative momentum.
Summary of Key Metrics
To summarise, Nocil Ltd. currently exhibits the following characteristics:
- New 52-week low price of Rs.128.05 recorded on 23 January 2026
- Year-to-date stock return of -44.07%, underperforming Sensex’s 6.67%
- Operating profit growth rate of -5.87% annually over the last five years
- Decline in net sales by 4.66% in recent quarterly results
- Operating cash flow at Rs.24.03 crores, the lowest in recent periods
- Profit before tax excluding other income down 52.9% quarter-on-quarter
- Net profit after tax down 47.9% quarter-on-quarter
- Return on equity at 3.6% with a price-to-book ratio of 1.3
- Low debt-to-equity ratio averaging zero
- Majority shareholding by non-institutional investors
These factors collectively contribute to the stock’s current valuation and rating status within the market.
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