A market leader is a company that has the largest market share in a particular sector. A market leader is a product, brand, business, organisation, or group name that has the largest percentage of total sales revenue in a certain market.
Market leaders control the market by influencing client loyalty, distribution, price, and so on. In a new market, the market leader frequently has a first-mover advantage.
Here are two stocks with a market share of up to 40% in their Industry
NOCIL Ltd
NOCIL Ltd., incorporated in 1961, manufactures rubber chemicals that are used by the tyre industry and other rubber processing industries.
NOCIL Ltd. shares have gained 27% in the last six months and 20% in a year. The company has a market capitalization of ₹4,623 crore.
NOCIL is a market leader in the rubber chemicals industry, with a market share of 40%. The company is also among the few players globally with a wide product basket of more than 20 rubber chemicals.
In fiscal 2023, NOCIL achieved a 3% year-on-year increase in turnover, reaching ₹1,617 crore. This growth was primarily driven by steady domestic demand, with domestic volumes experiencing a growth rate of approximately 5%. The boost in revenue was also attributed to higher realizations.
On the other hand, the company’s export volumes faced a decline of around 21% during the same period, mainly due to economic slowdown and reduced latex production in the Southeast Asian market.
In the third quarter of the fiscal year, the company demonstrated robust sales growth, marking a 4% increase from ₹326 crores in Q3FY23 to ₹341 crores in Q3FY24. Concurrently, the company achieved significant net profit growth of 58%, rising from ₹19 crores to ₹300 crores during the same period.
However, operating margins experienced a decline, decreasing to 15.6% in fiscal 2023 from 18.2% in fiscal 2022. This decline can be attributed primarily to heightened utility costs driven by increased energy expenses throughout the year. Despite this, the company managed to mitigate the impact of rising raw material prices by passing them on to contract customers, albeit with some delay, thus sustaining gross margins.
On February 23, 2024. The company shares were trading at ₹277 per share, up 0.14 percent from the previous close price on the National Stock Exchange.
Borosil Renewables Ltd
Borosil Renewables Ltd. shares have gained 28% in the last six months and 22% in a year. The company has a market capitalization of ₹7,241 crore.
Borosil Renewables is engaged in the manufacturing of extra clear patterned glass and Low solar Solar Glass for application in photovoltaic panels, Flat plate collectors, and greenhouses. The company has a market share of 40% in solar glass manufacturing
Borosil Renewables manufactures patterned glass and low iron solar glass for application in photovoltaic (PV) panels, flat plate collectors and greenhouses.
On 23rd February,2024.The company shares were trading at ₹555 per share, down 0.64 percent from the previous close price on the National Stock Exchange.
The company’s operational revenue has increased by 34 percent year on year from ₹246 crore in Q3FY23 to ₹330 crore in Q3FY24, while net profit reduced from a profit of ₹6 crore to a loss of ₹16 crore.
In January 2024, the company expanded its solar panel glass manufacturing capacity in India to 1,000 tonnes per day from a capacity of 550 tonnes per day. With 1,000 tonnes per day of capacity, it can supply solar glass for 6 GW of solar module production per year.
The company operates across Europe, North America, South America, Africa, and Asia, the company serves a global clientele exceeding 100 customers. In the past six years, the company has significantly expanded its capacity, growing from 180 tonnes per day (TPD) in 2018 to an impressive 1,350 TPD.
Written by Omkar Chitnis
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