SL. -. 130
1st Target - 150+
2st Target - 200+
3 to 6 month tarde
Educational purposes only
#PCBL will declare results on Apr 19, 2022
Do you have any view on the results? Let's aggregate whatever information we have from other sources for everyone's benefit.
ICICIdirect.com target on PCBL
Price @ Call: 120
#PCBL stock split @119:8 and the decrease is due to stock split.
BUY ABOVE 188
EXIT LONG BELOW 185
Valid till targets or stop.
Please read #Disclaimer carefully.
Hot stocks for the day and short term
SWING trade stock @ PHILLIPS CARBON
👉Buy At 224-230 (do not buy all quantity at same level, try to accumulate on dip)
👉TGT 250/255/260+, sl at 211 (on closing basis)
SWING trade(time 1-2 weeks)*
Do not use more than 10-15% of capital*
ICICIdirect.com target on PHILIPCARB
Price @ Call: 225
Fundamentally a very good stock at fair price valuations, can go long...
8-11-2021 ... *PHILIPCARB*🟢Buy @225-to-dips Target🎯240-260 Stop🏃Close < 215
#Massive shortage of carbon black in China, main raw material in the tyre industry trigger 25-30% price hike. Beneficiaries Companies Like- Birla Carbon, Philip Carbon , Nocil & Himadri Speciality
Stocks in the news
GAIL: The share buyback to open February 25 and close on March 10.
Jubilant FoodWorks: The company appointed Ashish Goenka as CFO. Earlier Goenka was with Bharti Airtel as Executive VP.
Phillips Carbon Black: The company commissioned two specialty black lines at Palej in Gujarat.
Dish TV India: The company approved raising funds of up to Rs 1,000 crore.
Bharti Airtel: The company to acquire 20% stake in Bharti Telemedia from Lion Meadow Investment Ltd, a Warburg Pincus entity.
NALCO: The company to open its share buyback worth Rs 749.1 crore on February 25 and close on March 10.
#BHARTIARTL #NATIONALUM #DISHTV #PHILIPCARB #GAIL
**Philips Carbon** CMP 164
PCBL, incorporated in 1960, is engaged in the manufacturing and sale of carbon black, which is mainly used in tyre and other rubber products. The company also produces specialty carbon blacks which are used as pigmenting, UV stabilizing and conductive agents in a variety of common and specialty products, including plastics, printing & packaging and coatings. PCBL is the largest producer of carbon black in the country and one of the largest players in the world, with an installed capacity of 5,71,000 MTPA of carbon black. It also has captive power plants (CPP).
ROE and ROCE is around 17% and 16% respectively and share is currently trading at annualized PE (forward PE) of around 14 which is fair as per Industry benchmark. Promoter holding is around 53.5% which is also strong and stable, FIIs and mutual fund also hold around 10% and 1.4% in the company. Debt is also reduced from 793 Crs to 589 Cr and declined around 196 Cr in past two years. Although operating cash flow declined in this quarter due to profitability significantly impact on past two quarter Q1 almost wiped out and Q2 was gradually recovered.
The additional 32,000 tonne capacity at Palej in Gujarat is expected to be commissioned by FY' 21. This consist of two lines, both for specialty black and also a 7 MW co-generation power plant.
The greenfield project of about 1,50,000 MT for manufacture of various grades of carbon black and 25 MW of co-generation power over 60 acres of land in Tamilnadu is progressing strategically.
Total investment is estimated to be in excess of Rs 600 crores and is expected to be commissioned by 2023.
PCBL (TN) LIMITED, a wholly owned subsidiary of Phillips Carbon Black Limited has been incorporated on 29 September, 2020.
Company has also paid good dividend an amount of INR 7 per share (Including INR 3.5 special dividend in this year) at price of 150 dividend yield is around 4.5% which is fair.
PCBL is the largest exporter of carbon black from India having presence in more than 40 countries, though majority of exports are to south-east Asian countries. The contribution of exports to sales increased from about 24% of sales volumes to about 29% of sales volumes in FY20.
Operating profit margin is nearby around 15-16% and ability to increase at 17-18%
The total operating income (TOI) decreased by about 8% YoY in FY20 on account of decrease in realizations of carbon black at the back of lower crude oil prices (driver of prices of raw material CBFS and thereby finished goods), even when sales volumes saw marginal increase.
Strong liquidity in the company and company has not opted for moratorium from its banks
PCBL had completed the capacity expansion of carbon Black in its Mundra unit by 56,000 MT in Q4FY19. Its ongoing speciality black project at Palej of Rs.230 crore funded through a mix of debt and equity is in advanced stage of progress and its commencement has been deferred to the end of FY21. The company has already spent Rs.177 crore on the project till July 2020.
Anti-dumping duty (ADD) is applicable till November 2020 at around USD 397/MT on import of carbon black from China and at differential rates upon import from other countries. Imports of carbon black had increased in FY19 due to increase in demand from the tyre industry in India which has again reduced in FY20 on the back of slowdown in the auto sector
View: Company is mainly dependent upon Automobile sector growth and last 2-3 years sector is degrowth and continuously declined now due to recovery on automobile sector the company can maintain their topline. Further PCBL is flagship company of RP-Sanjiv Goenka Group and strong corporate profile. Technically Share is in bullish zone good support level also with good volume and breakout also done at 155 level. Next short term target can be 180 with support of 145/128. Long term investor should continue with the company.