2 PHILIPCARB share price target reports by brokerages below. See what is analyst's view on PHILIPCARB share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
PCBL is a leading CB player domestically with healthy B/S (FY20E debt: equity at 0.4x) and capital efficient business model (FY20E RoE, RoCE at ~16%). We value PCBL at Rs 140 i.e. 5.5x EV/EBITDA on FY21E numbers with a BUY rating on the stock. We drive great comfort from healthy CFO generation at PCBL with the present CFO yield >20%.
FY19 was a superlative year for PCBL with EBITA margins inching up to 20%, primarily driven by tight demand-supply situation in domestic market. With demand situation now normalised and with one-offs behind it, we expect normalcy in earnings to prevail from Q2FY19 onwards with EBITDA margin expectation of ~16% vs. 12.4% clocked in Q1FY20. We value PCBL at | 150 i.e. 5x EV/EBITDA on FY21E numbers and assign a BUY rating to stock. We drive comfort from healthy CFO yield (>15%) & return ratios profile (>15%).
PCBL has moved up the ladder and is now a capital efficient player (RoCE ~20%) clocking EBITDA margins of 15%+ with controlled leverage (debt: equity at 0.5x) and prudent working capital cycle (< 60 days). Given the present transitory phase in the auto space and steady base case earnings at PCBL we change our valuation methodology from P/E to EV/EBITDA. We value PCBL at Rs 160 i.e. 5x EV/EBITDA on FY21E numbers and assign a BUY rating on the stock. We also derive comfort from average CFO yield over FY19-21E at 16% & with limited capex spend, FCF yield placed at 5.5%.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
DISCLAIMER: Information is provided "as is" and solely for informational purposes, not for trading purposes or advice, and may be delayed. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and FrontPage will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein.