PCBL Chemical Ltd. share price target

Phillips Carbon Black Limited (PCBL) reported consolidated Q2FY19 sales at INR 880 cr up 47% YoY

Phillips Carbon Black (Phillips) reported strong improvement in EBITDA/tonne (+38% QoQ) to Rs16k/tonne on price hike (Rs 3k/tonne), better product mix and operational efficiencies. Although total volumes at 99k tonnes were slightly below our estimate, its specialty volumes grew to 6k tonnes (2k tonnes in Q1FY18). EBITDA rose 67.9% YoY and 46.7% QoQ to Rs1,659 mn (better than our estimate of Rs1,404 mn). Net profit jumped...

Phillips Carbon Black Limited (PCBL) reported consolidated Q1FY19 sales at INR 781 cr up 33% YoY driven by price hike taken for tyre customers and increased sales of high end specialty carbon black

Further to our Research report dated October 27th 2016, wherein we had recommended a BUY at the then price of Rs. 51.50(Split adjusted), the share price had reached its all time high to Rs. 318.98 increased by ~500% in January 2018. The company has been steadily moving towards new highs with strong financial outlook. On the back of robust...

Outlook: We believe Phillips is likely to be a key beneficiary of shortage of carbon black in India. Further, management's strategy of increasing its volumes in favour of high margin specialty products is likely to drive 23%/32% in EBITDA/PAT over FY1820E. We maintain our BUY rating on the stock with a revised target price of Rs348...

Net sales in Q4FY18 were at | 753.0 crore, incorporating 5% YoY volume growth with carbon black (CB) sales volume at 103 KT Carbon black realisations for Q4FY18 were at US$1087/tonne (| 70.6/kg) vs. US$805/tonne (| 54.0/kg) in Q4FY17 EBITDA in Q4FY18 was at | 102.0 crore with corresponding EBITDA margins at 13.5%. EBITDA/tonne in Q4FY18 was at | 9903/tonne Margins came in a tad lower primarily tracking the management's accounting approach of expensing out the de-bottlenecking exercise...

Phillips Carbon Black Limited (PCBL) reported consolidated Q4FY18 sales at INR 753 cr up 37% YoY driven by higher realisation from pass through of CBFS prices (up ~23% YoY) in rubber carbon...

ICICI Securities Ltd | Retail Equity Research Phillips Carbon Black (PCBL) has executed a stock split in the ratio of 1:5 i.e. existing one share of PCBL (priced at | 1128 as of April 18, 2018) of face value | 10/share is sub-divided into five equity shares (priced at | 236 as of April 19, 2018 opening) of face value | 2/share. The record date for the same is April 20, 2018 while the ex-date for the same is today i.e. April 19, 2018. Consequently, incorporating the stock split, we revise our target price to | 340/share, offering a healthy upside 44% from the current level....

Phillips Carbon Black Limited (PCBL) reported consolidated Q3FY18 sales at INR 612 cr up 26% YoY driven by pass through of higher CBFS prices in rubber carbon black and increased sales of high...

Capacity expansion plans updated: The company remains on-track to add 30 kt capacity by FY18 and another 48 kt by FY19 with a total capex of Rs3,000 mn. Further, the company has now raised its capacity expansion plan for high-margin specialty carbon black from 24kt earlier to 56kt by FY19. Accordingly, we have raised our FY18/FY19 EBITDA/PAT to account for higher volumes and better realizations given rising supply constraints (on shortage of raw material, coal tar in China). Outlook: While Phillip's fund-raising plans may dilute its EPS in the near-term and will be a key overhang on the stock in the near-term, nevertheless, we believe its...