During Monday’s trading session, the shares of this micro-cap company involved in the sale of chemicals like Insoluble Sulphur and Sulphuric Acid jumped to hit a 20 percent upper circuit on the stock exchanges. The article explains what’s behind this sudden spike in the stock price.
With a market cap of Rs. 252 crores, the shares of Oriental Carbon & Chemicals Limited hit a 20 percent upper circuit at Rs. 252.05 on BSE, as compared to its previous closing price of Rs. 210.05. While the stock has recorded a decline of nearly 63 percent over the past year, it has rebounded significantly in the last month, delivering gains of over 46 percent.
What’s the News
The Indian government has imposed anti-dumping duties on imports of insoluble sulphur from China and Japan. Additionally, a similar duty has been levied on Vitamin A palmitate sourced from China, the European Union (EU), and Switzerland.
These actions are intended to protect Indian manufacturers from the impact of cheap imports that, according to authorities, are harming local industries. Both insoluble sulphur and Vitamin A palmitate are vital raw materials used in key sectors such as pharmaceuticals, food, cosmetics, and tyre production.
According to sources, the decision follows investigations by the Directorate General of Trade Remedies (DGTR), which found that these imports were being sold in India at unfairly low prices—below production cost or standard market value—causing significant harm to domestic producers.
The Central Board of Indirect Taxes and Customs (CBIC), through two separate notifications issued late Friday, confirmed that the anti-dumping duties come into immediate effect and will remain applicable for a period of five years.
For insoluble sulphur, the imposed duties range between $259 and $358 per metric tonne, whereas for Vitamin A palmitate, the duties range from $0.87 to $20.87 per kilogram.
The core business of Oriental Carbon & Chemicals Limited (OCCL) is the manufacturing and sales of chemicals, particularly insoluble sulphur and sulphuric acid. It is a global supplier of insoluble sulphur, with a significant portion of its revenue generated through exports.
OCCL is one of the market leaders in the production of Insoluble Sulphur, with a domestic share of nearly 60 percent and a global market share of nearly 10 percent. The company has a presence in 21 countries.
Insoluble Sulphur is sold under the brand “DIAMOND SULF” and is widely used as a vulcanising agent in rubber processing—especially in applications requiring high sulphur levels beyond what the base elastomer can dissolve.
Financials
Oriental Carbon reported a significant growth in its revenue from operations, showing a year-on-year rise of around 19 percent from Rs. 23.4 crores in Q4 FY24 to Rs. 27.8 crores in Q4 FY25. However, its net profit decreased during the same period from Rs. 16.6 crores to Rs. 1.51 crores, representing a decline of around 91 percent YoY.
Written by Shivani Singh
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