Shares of Oriental Carbon & Chemicals soared by 20% to hit a 52-week high of Rs 361.05 on 16 July, extending their gains for the seventh consecutive session.

With the stock reaching a new year-high, it has now surged 137% from its 52-week low of ₹152.34 on 4 June 2024. The stock has risen by up to 81% in the month of July itself.

The rally follows the company’s annual report, which expresses confidence in a rebound as global prices ease. It also disclosed a 14% decline in standalone revenue for FY24, totalling Rs 397 crore compared to Rs 465 crore in FY23. The profit after tax also decreased by 2% to Rs 43 crore from Rs 43.7 crore in the previous fiscal year.

The HDFC Mutual Fund has sold approximately 66,000 shares, or 0.66% of its stake, for Rs 1.64 crore in bulk deals on Friday. 

OCCL Chairman Mr Arvind Goenka stated that easing global price pressures would improve capacity utilization and surplus, hence enhancing stakeholder value. The company currently faces lower realizations and increased supply in the insoluble sulfur market due to expanded capacity by the manufacturers.

The management is taking the necessary steps to strengthen strategic directions, including increasing sales to new customers, such as an international tire major starting in CY2024. The company aims to moderate costs to stay competitive during the challenging end of the down cycle.

They are optimistic about the Indian automotive market due to rising disposable incomes, lifestyle aspirations, and personal mobility needs. They believe vehicle under-penetration in India will correct quickly, benefiting OCCL due to its strong market share and customer retention.

OCCL aims to expand its market reach in India and globally, focusing on sustainable insoluble sulfur sales. The company expects increased capacity utilization and capital efficiency with improved sectoral realizations.

At 3:30 PM, the shares of Oriental Carbon closed 20% higher at Rs 361.05 on BSE.

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