Recent Price Movement and Market Context
On 12 Jan 2026, Nocil Ltd. touched an intraday low of Rs.138.4, down 3.15% on the day, and closing with a day change of -1.36%. This marks the lowest price level for the stock in the past year, considerably below its 52-week high of Rs.241.4. The stock has declined for three consecutive trading days, resulting in a cumulative loss of 5.5% over this period. Notably, Nocil is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In comparison, the broader market benchmark, the Sensex, opened lower at 83,435.31 points, down 0.17%, and was trading marginally down at 83,563.16 points during the session. The Sensex remains within 3.11% of its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a relatively healthier market trend compared to Nocil’s stock trajectory.
Financial Performance and Valuation Metrics
Over the last year, Nocil Ltd. has underperformed significantly, delivering a negative return of 40.31%, while the Sensex posted a positive return of 7.99%. The company’s financial results have reflected this downturn, with net sales declining by 4.66% in the September 2025 quarter. Operating profit has contracted at an annualised rate of 5.87% over the past five years, highlighting challenges in sustaining growth.
Operating cash flow for the year stood at a low Rs.24.03 crores, while the profit after tax (PAT) for the latest quarter was Rs.12.12 crores, down 47.9% compared to the average of the previous four quarters. Return on capital employed (ROCE) for the half-year period was recorded at 4.96%, the lowest in recent history, and return on equity (ROE) was a modest 3.6%. These profitability metrics underscore the subdued earnings quality and efficiency.
Despite these challenges, the stock trades at a price-to-book value of 1.3, which is considered expensive relative to its peers’ historical valuations. This premium valuation, juxtaposed with deteriorating fundamentals, has contributed to the stock’s current weak performance and the recent downgrade in its Mojo Grade from Sell to Strong Sell as of 20 Dec 2024. The Mojo Score currently stands at 19.0, reflecting a cautious stance on the stock’s outlook.
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Comparative Performance and Shareholding Structure
Over the past three years, Nocil Ltd. has consistently underperformed the BSE500 index, with annual returns lagging behind the benchmark in each period. The stock’s 40.31% negative return in the last year is indicative of persistent challenges in regaining investor confidence and market traction.
On the capital structure front, the company maintains a low debt-to-equity ratio, averaging zero, which suggests a conservative approach to leverage. The majority of shares are held by non-institutional investors, which may influence liquidity and trading dynamics.
Technical Indicators and Market Sentiment
Technically, the stock’s position below all major moving averages signals a bearish trend. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price, indicating resistance levels that the stock has yet to overcome. This technical setup aligns with the fundamental concerns reflected in the company’s financial metrics and recent earnings performance.
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Summary of Key Metrics
To summarise, Nocil Ltd.’s current stock price of Rs.138.4 represents a 52-week low, reflecting a combination of subdued sales growth, declining profitability, and valuation concerns. The company’s operating cash flow and return ratios have deteriorated, while the stock trades at a premium to its peers despite these headwinds. The Mojo Grade of Strong Sell and a low Mojo Score of 19.0 further highlight the cautious stance on the stock’s near-term prospects.
While the broader market maintains a relatively stable position, Nocil’s performance remains distinctly weaker, underscoring the challenges faced by the company within the Specialty Chemicals sector. The stock’s technical indicators and fundamental data collectively illustrate the pressures contributing to its recent decline and the attainment of this significant price milestone.
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