PCBL Chemical Ltd. share price target

Phillips Carbon Black Limited (PCBL) is the largest producer of carbon black in India (37% market share) and the seventh largest worldwide. The company is expected to be a major beneficiary of...

ICICI Securities Ltd | Retail Equity Research Phillips Carbon Black (PCBL) is the largest manufacturer of carbon black (market share ~40%), which is used as a reinforcement material in manufacturing tyres (constitutes ~23% by volume) PCBL has successfully turned around its operations & is now clocking healthy ~16% EBITDA margin with core return ratios (RoE, RoCE) in excess of 25% (FY18E-20E), thereby traversing into a different orbit altogether vs. perception of a commodity play in the past...

ICICI Securities Ltd | Retail Equity Research Phillips Carbon Black (PCBL) reported another stellar performance in Q2FY18. Net sales for the quarter were at | 597.6 crore, up 30% YoY largely tracking increase in realisations amid 3% volume growth (capacity constraints, operated at 96% utilisation) Carbon black (CB) sales volume in Q2FY18 was at 1 lakh tonne with domestic volumes at 76 kilo tonne (KT) & export volumes at 24 KT EBITDA in Q2FY18 was at | 94.6 crore with corresponding EBITDA...

We raise our FY18/19 sales/EBITDA/PAT estimates to factor in strong Q2FY18 results and improved outlook; Maintain Buy with a target price of Rs1,130. Key Highlights and Investment Rationale Margin improvement continues: Phillips has reported higher EBITDA/tonne in each of the last five quarters on rising volumes, better product mix and efficiency gains....

Phillips Carbon Black (PCB) is the largest manufacturer of carbon black in India (46% market share by capacity) and seventh largest in the world. Rising tyre demand in India alongside production curbs in China (lower supplies) provide strong visibility on volume growth/margins for PCB. We expect PCB's sales/EBITDA/net profit to grow at a CAGR of 14.5%/30.5%/93.4% over FY17-19E. Its net debt to EBITDA to improve from 2.6x in FY17 to 1.3x by FY19; return on equity is likely to improve from 6.5% in FY17 to 18.5% in FY19. Given...

Phillips Carbon Black (PCBL) is the largest manufacturer of carbon black domestically. It is a proxy to play on the robust demand outlook of domestic tyres and consequent automobile demand PCBL has successfully turned around its operations with operational efficiencies and economies of scale resulting in 480 bps improvement in EBITDA margins to 13.5% in FY17 vs. 8.7% in FY16 The exit rate of EBITDA/tonne was at | 8597/tonne in Q4FY17 vs. the annual rate of | 6731/tonne in FY17, thereby indicating robust...

PCB is expanding carbon black capacity by 42k tonnes via brownfield expansion (current capacity - 472k tonnes) with a modest capex of Rs1,400 mn. Currently, it is the only one expanding carbon black capacity in India and has the ability to produce 56 different grades of carbon black. Further, PCB is doubling its specialty grade carbon to 24k tonnes with a capex of...

Phillips Carbon Black (PCBL) reported a robust Q4FY17 performance. Net sales for the quarter was at | 550.0 crore, largely tracking robust volume growth of 11% YoY (98000 tonne) EBITDA in Q4FY17 was at | 84.3 crore with corresponding EBITDA margins at 15.3%. PAT in Q4FY17 was at | 28.1 crore vs. | 6.8 crore in Q4FY16. EBITDA/tonne in Q4FY17 was at | 8597/tonne On a full year basis, PCBL clocked sales of | 1927 crore, EBITDA of | 260 crore (EBITDA margins 13.5%) and PAT of | 72.8 crore...

ICICI Securities Ltd | Retail Equity Research Phillips Carbon Black (PCBL) is the largest manufacturer of carbon black domestically. The company is a proxy to play on the robust demand outlook of the domestic tyre industry PCBL has successfully turned around its operations with operational efficiencies and economies of scale resulting in ~400 bps improvement in EBITDA margins to 13.0% in FY17E vs. 8.7% in FY16 PCBL is currently operating at ~95% utilisation levels. However, it is...

ICICI Securities Ltd | Retail Equity Research Phillips Carbon Black (PCBL) reported a robust Q3FY17 performance. Net sales for the quarter were at | 484.0 crore, largely tracking robust volume growth of 20% YoY (96000 tonne) EBITDA in Q3FY17 was at | 64.9 crore with corresponding EBITDA margins at 13.4%. PAT in Q3FY17 was at | 17.5 crore vs. | 8.3 crore in Q3FY16. EBITDA/tonne in Q3FY17 was at | 6756/tonne Carbon black, domestic demand largely immune to demonetisation...