OCCL Ltd is a prominent Indian chemical manufacturer specializing in the production of insoluble sulphur. Incorporated in 2024, the company manufactures insoluble sulphur and sulphuric acid, establishing itself as a key player in India's specialty chemicals sector. Its products serve various industrial applications, including rubber, tire manufacturing, paints, soaps, detergents, and insecticides. OCCL Limited is an ISO40001 and ISO45001 certified manufacturer of customized and value-added grades of Insoluble Sulphur, demonstrating a commitment to high-quality standards and robust occupational health and safety management systems.
OCCL's primary business revolves around the production of insoluble sulphur, a critical raw material essential across multiple industries. The company's strategic focus on specialized chemical manufacturing has positioned it as an important supplier to downstream industries that rely on these chemical inputs for their production processes.
The company has undertaken significant capacity expansion initiatives. In 2009, a greenfield expansion of 11,000 metric tons per annum (MTPA) of insoluble sulphur commenced at the Mundra plant. The first phase of 5,500 MTPA capacity was completed in 2011, with the second phase of 5,500 MTPA commissioned in May 2012. From 2012 onwards, both phases of the Mundra plant were fully operational. In 2021, a second expansion of 5,500 MTPA of insoluble sulphur was completed in Dharuhera, India.
As of June 2025, OCCL Ltd has a market capitalization ranging from ₹510 Cr to ₹576 Cr, positioning it as a small to mid-cap company in the Indian stock market. Recent financial performance indicates mixed results. For Q4 FY25 (ending March 2025), the company reported a revenue of ₹28.62 Cr and a net profit of ₹0.88 Cr to ₹1.51 Cr. Oriental Carbon & Chemicals Ltd's net profit saw a significant decrease of -94.36% compared to the same period last year, indicating some challenges in maintaining profitability levels.
- Market Capitalization: ₹510-576 Cr (June 2025)
- Q4 FY25 Revenue: ₹28.62 Cr
- Q4 FY25 Net Profit: ₹0.88 Cr - ₹1.51 Cr
- Current PE Ratio: 33.52
- Current PB Ratio: 1.11
The company has received a significant boost from recent regulatory developments. Anti-dumping duties imposed on insoluble sulphur imports from China and Japan are expected to have a positive impact on OCCL Limited. Following the Q4 FY25 earnings call, reports suggest a 12% quarter-on-quarter revenue growth, with anti-dumping duties on imports anticipated in June. This development is expected to provide protection from cheaper imports and potentially improve the company's competitive position in the domestic market.
OCCL Ltd recently incorporated a subsidiary to handle its chemical business. Upon becoming effective, this will result in two independent entities: one focusing on chemicals and the other on investment trading. This restructuring initiative demonstrates the company's strategic approach to optimizing its business operations and creating focused entities for different business verticals.
The company maintains a strong governance framework, with Pranab Kumar Maity serving as the Company Secretary for OCCL Ltd. The registered office is located at Survey No 141 Paiki of Mouge, Village-Mundra SEZ, Dist Kutch, Kachchh, Gujarat, 370421. The primary industry in which OCCL Ltd operates is Chemicals.
From a valuation perspective, OCCL Ltd's P/B ratio stands at 1.45 times as of June 10, 2025, representing a 59% discount to its peers' median range of 3.58 times. The P/E ratio is 26.87 times as of June 10, 2025, a 2% discount to its peers' median range of 27.42 times, suggesting the stock may be trading at relatively attractive valuations compared to industry peers.
The company's strategic positioning in the specialty chemicals sector, combined with capacity expansion initiatives and recent regulatory support through anti-dumping duties, presents both opportunities and challenges for investors. The recent corporate restructuring and focus on creating specialized business entities indicate management's commitment to optimizing operational efficiency and creating shareholder value. OCCL's established manufacturing infrastructure, quality certifications, and strategic market positioning in the insoluble sulphur segment make it a noteworthy player in India's chemical manufacturing landscape. However, investors should carefully consider the recent financial performance trends and industry dynamics when evaluating investment opportunities.
