Ankur Jain, a registered investment advisor based in India, presented his in-depth investment thesis on Nocil (NSE: NOCIL) at Asian Investing Summit 2018.
Thesis summary:
Nocil: With 45% market share in rubber chemicals in India, Nocil has an exceptional mesh of competitive advantages around it. The advantages range from having the best technology (patented), large capacities driving economies of scale, a position of the supplier of choice to its customers, and world-class products. With structural change occurring in China, the supply chain has been disrupted and competitive intensity has weakened. Customers also want to reduce their dependence on one source country. A combination of these changes is providing Nocil with remarkable opportunities to grow.
The balance sheet is robust, with zero debt and ~$46 million in cash. Net of cash, the business sells for ~$450 million or ~19x FY18 estimated after-tax profits. Managed by one of the best promoter groups in India, Nocil has a long runway of growth ahead.
Listen to this session:
slide presentation audio recording
About the instructor:
Ankur Jain has been practicing value investing for about a decade and a half and at present, manages money for clients as an independent investment advisor. He follows the principles of Buffett, Munger and Fisher in his pursuit of investment ideas. He looks for the trinity of businesses with strong competitive advantages, run by ethical managements and available at prudent valuations. Focus and depth are two of the main attributes that Ankur strives to achieve in his work. He dives deep into understanding a business and once convinced, puts a large amount of money behind the idea. He believes that value investing is like growing trees – one has to provide the right seed, the right amount of fertilizer, water, sunshine and time. Learn more at CalculatedWagers.com.
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