OCL builds strong

OCL India inched so close to its 52-week high mark of Rs.800.75 today when it hit an intra day high at Rs.795.05. It remains firmly in the green, with volumes up some 7 times.

This flagship of the Dalmia group was set up in 1949 as Orissa Cement, with the main aim to manufacture super grade cement for use in the construction of the State of Odisha. Presently its installed capacity for the factories located at Rajgangpur Cement Works & Kapilas Cement Works is 5.35 Million Tonne per annum.
OCL’s Refractory plant is situated at Rajgangpur with a total installed capacity of 106400 MT per annum to produce the various types of refractories. 

The stock is in the limelight today as it did very well for Q1FY17. On a 4% (YoY) rise in net sales at Rs.704 crore, purely on operational efficiency, the company ended the quarter with a 96% rise in net profit at Rs.106 crore. EBITDA margin showed a fantastic 500 bps jump from 20.4% to 25.3%.

Cement remains its main earner with its topline rising 2%  and EBIT rising 43% though refractory EBIT remains in the red. The company’s equity stands at Rs.11.38 crore and EPS was at Rs.18.60 (FV of Rs.2).