Report By: Vikash Kandoi vikash@dynamiclevels · Industry Outlook Position of Chemical industry in world India is the largest producer of chemicals in Asia and sixth by output, in

Page 1 Source: Company, www.dynamiclevels.com

Report By: Vikash Kandoi – [email protected]

mailto:[email protected]


NOCIL Ltd – An Arvind Mafatlal Group

Company Overview and Stock Price 3

Product Overview 4

Chemical & Petrochemicals Industry Outlook 6

Company Financials 8

Yearly Trends Analysis 11

Cost of Capital 12

Peer Comparison 12

Shareholding Pattern 13

Investment Rationale 14

Disclaimer 15


Company’s Overview

NOCIL is involved in the Rubber chemicals business from last 4 decades. Company offers wide range of rubber chemicals to suit to their customer needs. Being rich in Experience Company offers a one stop shop to customers, NOCIL is today acknowledged as a dependable supplier of rubber chemicals. They have Global recognition for their technical capabilities and on this aspect alone, NOCIL enjoys an edge over other players in this business.

NOCIL Positioning

Diversified Product Portfolio

Strong R&D Capabilities

Asia Hub for Tyre Industry

Product Testing & Validation

The Company posted exceptional Q4 result in FY 16.

Net profit of NOCIL rose 31.68% to Rs 22.53 crore in the quarter ended March 2016 as against Rs 17.11 crore during the previous quarter ended March 2015.

Sales declined 7.37% to Rs 175.35 crore in the quarter ended March 2016 as against Rs 189.31 crore during the previous quarter ended March 2015.

For the full year, net profit rose 36.96% to Rs 77.74 crore in the year ended March 2016 as against Rs 56.76 crore during the previous year ended March 2015.

Sales declined 1.15% to Rs 707.80 crore in the year ended March 2016 as against Rs 716.02 crore during the previous year ended March 2015.

Chart Hypothesis: Above is the weekly price chart of NOCIL for last 1 yr, in which we can see that stock has gained momentum from 30 levels and currently trading at 50. Chart is showing immediate upward target of 60.

COMPANY PROFILE OF NOCIL, NSE, INDIA

Date of Incorporation 11-May-61

Date of Listing 3-Nov-94

MANAGEMENT

Name Designation

Hrishikesh A Mafatlal Chairman

C L Jain Director

Vishad P Mafatlal Director

Vilas R Gupte Director

Rohit Arora Director

P V Bhide Director

N Sankar Director

D N Mungale Director

D N Raval Director

C R Gupte Managing Director

Registered Office Address

Mafatlal House,H T Parekh Marg, Backbay Reclamation,

Churchgate,400020,Mumbai,Maharashtra,India Website

http://www.nocil.com

Share Price Performance EXCHANGE SYMBOL NOCIL Current Price * (Rs.) 53.20 Face Value (Rs.) 10.00 52 Week High (Rs.) 64.20 (15-Dec-2015) 52 Week Low (Rs.) 36.40 (25-Aug-2015) Life Time high (Rs.) 69.90 (04-Jan-2008) Life Time low (Rs.) 4.75 (25-Mar-2003) Average Daily Movement 2.44 Average Volume [20 days] 1504741 1 Month Return (%) 15.77 P/E Ratio (x) 10.98 Book Value 30.68 Market Cap 855.39(Cr) % of Promoter holding pledged

14.11


Product Overview

NOCIL today is the Largest Rubber Chemicals Manufacturer in India with the State of the Art Technology for the manufacture of rubber chemicals.

Brands

PILFLEX® Antidegradants

PILNOX® Antioxidants

PILCURE® Accelerators

Post Vulcanization Stabilizer

PILGARD® Pre Vulcanization Inhibitor

These brands are well recognised in both domestic as well as international markets.

NOCIL has set up new manufacturing facility at Dahej in Gujarat, with a much improved process technology to strengthen their position in the field of Rubber Chemicals. The said facility has started its commercial operations in FY 2012-13.

Rubber Chemical

Rubber Chemicals are specialty organic chemicals and the manufacturing process involves complex chemical reactions and associated unit operations. National and International tire industry being the main consumer of these products; quality, product consistency and product form are the essential features of these products. Being performance chemicals, approval from customer involves actual performance trial of their finished product and hence NOCIL's continuously updated manufacturing technology ensures performance of products in application areas.

NOCIL has state of the art manufacturing facility to deliver quality products to customer at

Navi Mumbai

Dahej

The manufacturing facility is fully automated through PLC/DCS controls not only to ensure quality and consistency of product but also built in safety features to ensure safety of all the operations. Qualified and experienced engineers do interaction with the system.


NOCIL through its dedication and experience has developed Quality Assurance (QA) with the clear target of 'Zero Defect’. Each stage of production from raw materials sourcing, through manufacturing to post-production are closely monitored.

TS 16949 are the set quality system for automobile industry. NOCIL despite being a second stage supplier to automobile industry have been certified with TS 16949 right from 2013.

With the latest Analytical Instruments & Equipments the Quality Assurance Laboratory operates round the clock and

NOCIL has built a broad customer base in India and over forty countries across the world.

NOCIL is acknowledged for its sustainability, reliability and as a quality supplier by domestic and international customers.

NOCIL’s marketing efforts are supplemented by its Marketing Technical Services (MTS) team which offers support to customers for solving their technical needs.

This support covers areas like

Compounding

Shop-floor trouble-shooting

Cost reduction

Improving end product quality

This team also identifies the market’s current and emerging needs for existing products and services, the need for new products and seamlessly integrating these into the organizational growth plans.

NOCIL is committed to develop innovative and sustainable competitive technologies with a focus on high quality products to achieve long term business growth as well as fulfill perceived requirement of national and international customers.

Dahej project is the culmination of these efforts where technology development, basic engineering and project engineering is done in-house. NOCIL has got patents for scientific development in the field of rubber chemicals.

NOCIL has built a broad customer

base in India and over forty

countries across the world.

NOCIL have been certified with TS

16949 right from 2013.

NOCIL has got patents for scientific

development in the field of rubber

chemicals.

NOCIL has developed Quality

Assurance approach based on the

clear target of ‘Zero Defect’


Chemicals and Petrochemicals Industry Outlook

Position of Chemical industry in world

India is the largest producer of chemicals in Asia and sixth by output, in the world.

The chemicals industry is a key constituent of the Indian economy, accounting for about 1.38% of the nation’s GDP.

India is currently the world’s third largest consumer of polymers and fourth largest producer of agro-chemicals.

India’s proximity to the Middle East, the world’s source of petrochemical feedstock, makes for economies of scale.

Strong government support for R&D. Polymers and agro-chemicals industries in India present

immense growth opportunities. 100% FDI permitted through automatic route. Chemical Sector is delicensed except for few hazardous

chemicals. Upcoming Petroleum, Chemicals and Petrochemicals

Investment Regions (PCPIR) & Plastic Parks will provide state-of-the-art infrastructure for Chemical & Petrochemicals Sector.

Trade in most of the chemicals is free except for those attracting provision of international conventions.

Market Size

The estimated size of the market is USD 144 Billion.

India accounts for approximately 16% of the world production of dyestuff and dye intermediates.

Total production of the Indian chemicals industry was 19,308 Thousand Metric Tonnes in 2013-14.

It is one of the most diversified sectors, covering more than 70,000 commercial products.

Current production of polymers is around 9 Million Tonnes with imports of around 2.8 Million Tonnes.

Polymer demand is expected to grow by 8-10% with healthy growth in industries such as clothing, automobiles etc.

India is the largest producer of

chemicals in Asia

100% FDI permitted through

automatic route

It is one of the most diversified

sectors, covering more than

70, 000 commercial products.


Parameter driving Chemical Sector

A large population, huge domestic market dependence on agriculture and strong export demand are the key growth drivers for the industry.

A global shift towards Asia as the world’s chemicals manufacturing hub

Per capita consumption of chemicals in India is lower as compared to western countries, so immense scope for new investments.

Rise in GDP and purchasing power generates huge growth potential for the domestic market.

A focus on new segments such as specialty and knowledge chemicals.

Low-cost manufacturing.

Skilled science professionals.

World-class engineering and strong R&D capabilities. FDI POLICY

100% Foreign Direct Investment (FDI) is allowed under the automatic route in the chemicals sector, subject to all the applicable regulations and laws.

Government Initiatives

BUDGET ANNOUNCEMENTS FOR 2O15-2O16:

Reduced Basic Customs Duty (BCD) on Ulexite from 2.5% to

0%.

Reduced Special Additional Duty (SAD) on Naphtha from 4% to

2%.

Reduced BCD on Styrene Monomer from 2.5% to 2%. Further,

SAD on this product has been reduced from 4% to 2%.

Reduced BCD on Ethyleme Dichloride from 2.5% to 2%.

Further, SAD on this product has been reduced from 4% to 2%.

Reduced BCD on Vinyl Chloride Monomer from 2.5% to 2%.

Further, SAD on this product has been reduced from 4% to 2%.

Reduced BCD on Isoprene from 5% to 2.5%

Reduced BCD on Anthraquinone for Hydrogen Peroxide from

7.5% to 2.5%

Reduced BCD on Butyl Acrylate from 7.5% to 5%.

Reduced BCD on Liquefied Butanes from 5% to 2.5%.


Company Financials

Income Statement (in Cr.) 31-Mar-16 31-Mar-15 31-Mar-14 2015-2016 2014-2015

Annual Annual Annual % Growth % Growth

Net Sales/Income from operations 707.80 716.02 593.57 -1.15% 20.63%

Other Operating Income 7.41 2.98 2.57

Total Income From Operations 715.21 719 596.14

Increase/Decrease in Stocks 43.92 -49.39 -8.49

Consumption of Raw Materials 312.21 434.12 353.43 -28.08% 22.83%

Purchase of Traded Goods 3.37 3.84 4.08

Employees Cost 60.77 50.28 42.74 20.86% 17.64%

Depreciation 14.63 14.5 18.74

Other Expenses 155.56 166.87 142.01

Total Expenditure 590.46 620.22 552.51 -4.80% 12.25%

Operating Profit 124.75 98.78 43.63 26.29% 126.40%

Other Income 3.53 3.97 10.83

P/L Before Int., Excpt. Items & Tax 128.28 102.75 54.46

Interest 9.34 16.51 17.39

P/L Before Exceptional Items & Tax 118.94 86.24 37.07 37.92% 132.64%

Exceptional Item -- -- -2.03

P/L Before Tax 118.94 86.24 35.04

Tax 40.68 29.14 11.19

Net Profit/(Loss) For the Period 78.26 57.1 23.85 37.06% 139.41%

Equity Share Capital 160.79 160.79 160.79

Reserves 309.21 254.17 216.77

EPS (Rs.) [After Extraordinary items] 4.87 3.55 1.48 37.18% 139.86%

Promoters and Promoter Group Shareholding Pledged

14.11 14.35 --

Company’s financials has turnaround in the year 2015 where company's posted its sales growth of 20.63% and operating profit jumped by 126.40%. However, in the year 2016 company does not able to show any significant increase, but has mined its sale with marginal decrease of 1.15%. Operating profit has gone up by 26.29%. If we look into the Net Profit company has shown jump of 37.18%. With this we can conclude that company has been able to maintain its 2014 growth.

Financial Ratios

Name Ratio

Current Ratio (x) 1.95

Quick Ratio (x) 1.08

Dividend Yield (%) 0.00

Interest Coverage Ratio (x) 7.10

Debt Equity Ratio (x) 0.30

Return On Asset (%) 7.92

Return On Equity (%) 13.76


Balance Sheet FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

ASSETS Cash And Equivalents 0.74 128.30 109.18 139.41 61.43 153.80 Short Term Investments 340.00 260.00 - - - -

Total Cash & ST Investments 340.74 388.30 109.18 139.41 61.43 153.80 Accounts & Notes Receivable 866.75 995.78 1,108.66 1,477.18 1,671.88 1,510.50 Total Receivables 866.75 995.78 1,108.66 1,477.18 1,671.88 1,510.50 Inventories 1,070.21 1,143.30 1,157.11 1,601.27 1,877.31 1,326.30 Prepaid Exp. 10.27 1.90 4.10 2.73 2.74 - Restricted Cash 123.92 10.46 12.53 13.31 14.05 - Other Current Assets 177.73 171.53 199.56 157.39 175.34 148.10 Total Current Assets 2,589.62 2,711.26 2,591.14 3,391.28 3,802.74 3,138.70 Net Property, Plant & Equipment 1,289.44 2,168.12 3,186.85 3,184.77 3,093.80 3,126.80 Long-term Investments 2.08 1.78 224.28 224.28 224.28 552.70 Deferred Charges, LT - - - - - - Other Long-Term Assets 579.47 595.41 586.10 523.13 429.73 - Total Assets 4,460.62 5,476.58 6,588.37 7,323.47 7,550.55 6,818.20 LIABILITIES Accrued Exp. - - - - - - Short-term Borrowings 10.27 54.59 536.70 803.92 968.08 8.70 Accounts Payable 736.80 609.73 654.78 1,168.87 838.72 729.40 Curr. Income Taxes Payable - - - - - - Other Current Liabilities 213.17 306.88 415.34 337.68 524.63 564.10 Total Current Liabilities 960.25 971.20 1,606.82 2,310.47 2,331.43 1,302.20 Long-Term Debt - 750.00 931.67 718.33 505.00 150.00 Unearned Revenue, Non-Current - - - - - - Other Non-Current Liabilities 391.24 413.95 399.97 519.07 564.56 666.00 Total Liabilities 1,351.48 2,135.14 2,938.45 3,547.88 3,400.99 2,118.20 Minority Interest - - - - - - Additional Paid In Capital 1,652.96 1,652.96 1,652.96 1,652.96 1,652.96 1,607.90 Retained Earnings - - - - - - Treasury Stock - - - - - - Comprehensive Inc. and Other 1,456.17 1,688.48 1,996.96 2,122.63 2,496.61 3,092.10 Total Equity 3,109.13 3,341.44 3,649.92 3,775.59 4,149.57 4,700.00 Total Liabilities And Equity 4,460.62 5,476.58 6,588.37 7,323.47 7,550.55 6,818.20


Cash Flow FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

3/31/2011 3/31/2012 3/31/2013 3/31/2014 3/31/2015 --

Net Income 335.1 345.5 421.3 238.5 571.0 782.6

Depreciation & Amort., Total 90.8 101.0 90.1 187.4 145.0 146.3

Other Non-Cash Adj (32.0) 37.9 (236.8) 79.7 113.8 -

Changes in Non-Cash Capital (91.3) (531.9) (185.9) (136.2) (659.5) -

Cash from Ops. 302.5 (47.5) 88.7 369.4 170.3 928.9

Capital Expenditure (291.9) (933.2) (921.1) (280.1) (89.7) -

Sale of Property, Plant, and Equipment 0.4 0.6 0.3 0.3 1.5 -

Proceeds from Investment - 0.3 - - - -

Other Investing Activities 200.4 218.5 - - - -

Cash from Investing (91.1) (713.8) (920.8) (279.8) (88.2) -

Net Short Term Debt Issued/Repaid (167.1) 54.6 318.8 217.2 164.2 -

Long-Term Debt Issued - 750.0 345.0 - - -

Long-Term Debt Repaid - - - (163.3) (213.3) -

Total Debt Issued/Repaid (167.1) 804.6 663.8 53.9 (49.2) -

Pref. Dividends Paid (111.0) (111.1) (111.1) (112.1) (112.1) -

Total Dividends Paid (111.0) (111.1) (111.1) (112.1) (112.1) -

Other Financing Activities (0.8) 0.0 0.3 (1.2) 1.3 -

Cash from Financing (279.0) 693.5 553.0 (59.4) (160.0) -

Net Change in Cash (67.5) (67.9) (279.1) 30.2 (78.0) 928.9

From the above table, we can see that company lowered down its capital expenditure in FY 2015. Operating cash flow is in

positive territory. From last 2 years company has not taken any long term debt, however, there was an outage to pay long

term debt.


Yearly Trend Analysis

Ratios FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Profitability

Return on Assets 7.7% 7.0% 7.0% 3.4% 7.7% 10.9%

Return on Capital 10.6% 9.6% 9.9% 6.9% 12.5% --

Return on Equity 11.2% 10.7% 12.1% 6.4% 14.4% 17.7%

Margin Analysis

EBITDA Margin 11.8% 10.7% 4.3% 10.6% 16.0% 19.7%

EBIT Margin 9.8% 8.6% 2.5% 7.4% 14.0% 17.6%

Earnings from Cont. Ops Margin 9.8% 8.6% 2.5% 7.4% 14.0% 17.6%

Net Income Margin 7.5% 7.2% 8.7% 4.0% 7.9% 11.1%

Normalized Net Income Margin 7.5% 7.2% 4.3% 4.3% 7.9% 11.1%

Free Cash Flow Margin 0.2% -20.6% -17.1% 1.5% 1.1% --

Asset Turnover

Total Asset Turnover 1.0x 1.0x 0.8x 0.9x 1.0x 1.0x

Fixed Asset Turnover 3.5x 2.8x 1.8x 1.9x 2.3x 2.3x

Accounts Receivable Turnover 5.2x 5.1x 4.6x 4.6x 4.6x 4.4x

Short Term Liquidity

Current Ratio 2.7x 2.8x 1.6x 1.5x 1.6x 2.4x

Quick Ratio 1.3x 1.4x 0.8x 0.7x 0.7x 1.3x

Cash from Ops. To Curr Liab 0.4x 0.4x 0.1x 0.1x 0.0x 0.1x

Avg. Days Sales Out. 70.4x 71.5x 79.1x 79.5x 79.9x 82.3x

Avg. Days Payable Out. -- -- 74.6x 82.4x 78.1x --

Long Term Solvency

Total Debt/Equity 0.3% 24.1% 40.2% 40.3% 35.5% 3.4%

Total Debt/Capital 0.3% 19.4% 28.7% 28.7% 26.2% 3.3%

LT Debt/Equity 0.0% 22.4% 25.5% 19.0% 12.2% 3.2%

LT Debt/Capital 0.0% 18.1% 18.2% 13.6% 9.0% 3.1%

Total Liabilities/Total Assets 8.8% 21.3% 20.2% 16.9% 14.2% 12.0%


Cost of Capital

WACC FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

3/31/2012 3/31/2013 3/31/2014 3/31/2015 -- Equity Cost of Equity 11.0% 10.1% 11.7% 12.3% 14.5% Weight of Equity 76.9% 60.5% 62.1% 80.4% 97.9% Debt Cost of Debt 8.5% 10.5% 8.1% 7.1% 6.8% Weight of Debt 23.1% 39.5% 37.9% 19.6% 2.1% Preferred Equity Cost of Pref Equity

-- -- -- -- --

Weight of Pref Equity

0.0% 0.0% 0.0% 0.0% 0.0%

WACC 10.4% 10.2% 10.3% 11.3% 14.3%

Company’s cost of debt is decreasing which a positive sign for the growth.


Peer Comparison

INSTRUMENT Price % Pledged

% FII Holding

P/E Ratio (X)

Debt Equity Ratio (X)

NOCIL 52.85 14.11 0.45 10.98 0.30

ATUL 1934.00 6.48 6.32 20.97 0.25

DCW 28.80 0.00 0.00 18.81 1.23

MEGHMANI ORGANICS 35.10 0.00 0.00 11.52 0.92

NAVIN FLUORINE 2030.00 15.55 4.89 22.66 0.10

SUDARSHAN CHEMICAL 108.05 0.00 0.00 13.80 1.46

TATA CHEMICALS 408.25 4.72 21.95 21.96 1.26

UPL 587.55 5.06 20.21 19.58 0.47

The Company is trading at the lowest PE ratio comparing among its peers, i.e. company is trading at cheap valuations, and average industry PE is 18.

INSTRUMENT Price Avg. Volume Market Cap (Rs. in Cr)

NOCIL 52.85 1504741 855 ATUL 1934.00 47041 5634 DCW 28.80 1019071 615 MEGHMANI ORGANICS 35.10 3065436 863 NAVIN FLUORINE 2030.00 24708 1960 SUDARSHAN CHEMICAL 108.05 213946 733 TATA CHEMICALS 408.25 476399 10172 UPL 587.55 1967979 25412

NOCIL has a good market capitalization of more than 500 crs and average volume is almost 15 lakhs this suggests that the company has a good market price liquidity to trade easily.

Sl INSTRUMENT 1M % 3M% 6M% 1Y% Movt Post Budget %

1 MEGHMANI ORGANICS 32.36 52.93 55.02 128.62 74.55 2 UPL 29.45 43.91 32.18 21.50 56.62 3 NAVIN FLUORINE 23.05 25.41 18.27 155.11 48.28 4 DCW 10.89 19.40 35.92 64.22 44.70 5 ATUL 13.55 29.99 10.05 69.74 39.59 6 NOCIL 9.80 12.47 15.03 42.06 36.94 7 SUDARSHAN CHEMICAL 2.57 13.25 -7.59 6.64 31.70 8 TATA CHEMICALS 10.55 9.14 -2.56 -4.85 25.96

Post budget the chemical sector has performed very well and in spite of huge volatility it remained in positive territory were Nocil was up by almost 37%. This concludes that till date this sector is a promising sector to increase the share holder’s wealth.


Shareholding Pattern

Shareholding Pattern Mar-16 Dec-15 Sep-15 Jun-15 Mar-15 Dec-14

Promoter and Promoter Group (%) 37.61 37.61 37.55 37.00 37.00 37.00 Indian 37.61 37.61 37.55 37.00 37.00 37.00 Foreign NIL NIL NIL NIL NIL NIL Institutions (%) 2.39 2.20 2.53 1.94 1.94 2.04 FII 0.37 0.45 0.86 0.02 0.18 0.18 DII 2.02 1.75 1.67 1.92 1.86 1.88 Non Institutions (%) 60.00 60.19 59.91 61.05 60.96 60.94 Bodies Corporate NIL NIL 13.43 16.31 12.71 13.29 Others 60.00 60.19 46.48 44.74 48.24 47.65 Custodians NIL NIL NIL NIL NIL NIL Total no. of shares (cr.) 16.08 16.08 16.08 16.08 16.08 16.08

NOCIL shareholding does not any significant investment by FII and DII.


Investment Rationale

NOCIL Annual Performance

Nocil Return on Net Worth increased highest in last 4 years by 10.90% YoY

Nocil Return on equity increased to 17.70% from 14.40% YoY.

Nocil EBIT margin is 17.60% YoY highest in last 5 year.

Net income margin is at 11.10% last year it was at 7.90%

Company is able to maintain its free cash flow in positive zone from last 2 years .i.e. FY 2014&

FY2015

Company’s Debt to equity ratio is at lowest level of 0.30

Rubber Chemicals is a critical input for Rubber application Industry

With large and wide variety of products, NOCIL is one stop shop for almost all rubber applicable

industries

High Concentration & Continuous R&D initiatives

NOCIL has a strong pipeline of New Generation Rubber Chemicals

Major Tyre companies have started consolidating their operations in & around Asia closer to the

Growth Markets, With established track record, NOCIL will benefit from this scenario

With Product Pipeline and requisite Customer accreditations, NOCIL is a “Supplier of Choice”

Land & Common Infrastructure available for further expansion at Dahej

We recommend BUY in NOCIL in correction @ 48-50 with the target of 60.

https://www.dynamiclevels.com/en/nocil-share-price-forecast


Disclaimer: Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014. Dynamic Equities Pvt. Ltd. is a member of National Stock Exchange of India Ltd. (NSEIL), Bombay Stock Exchange Ltd (BSE), Multi Stock Exchange of India Ltd (MCX-SX) and also a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd.(CDSL). Dynamic is engaged in the business of Stock Broking, Depository Services, Investment Advisory Services and Portfolio Management Services. Dynamic Equities Pvt. Ltd. is holding company of Dynamic Commodities Pvt. Ltd. , a member of Multi Commodities Exchange (MCX) & National Commodity & Derivatives Exchange Ltd.(NCDEX). We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of the knowledge and belief of Dynamic/ its Associates/ Research Analyst who prepared this report

DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report or at the time of public appearance? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the Subject Company or third party in connection with the research report? No

DYANMIC/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have been engaged in market making activity for the subject company? No

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Report By: Vikash Kandoi vikash@dynamiclevels · Industry Outlook Position of Chemical industry in world India is the largest producer of chemicals in Asia and sixth by output, in