This Ace Investor Ashish Kacholia stock which deals in the business of carbon black, specialty chemicals and power generation was down by 13 percent on Monday which is due to quarterly result announcements with net profit down by 37 percent year on year.
Share Price Movement
In Monday’s trading session, PCBL Ltd’s share price was down by 12.8 percent, trading at Rs. 346.60 per share. The share price reiterated from the day’s high and was trading at Rs. 365, which is 6.67 percent lower than the previous closing price of Rs. 391.10. In the past year, the stock has delivered around 32 percent and has outperformed the Nifty
Index.
What Happened
The company’s stock declined after it released its quarterly financials. In its latest filing for the quarter ending December 2024, the company reported a 21 percent rise in revenue, reaching Rs.2,010 crore compared to Rs.1,656.76 crore in Q3 FY24. On a quarter-over-quarter basis, the operational revenue fell by 7 percent from Rs. 2,163.20 crore in Q2FY25.
During the same period, net profit declined by 37.07 percent to Rs.93.11 crore in Q3 FY25, compared to Rs. 147.98 crore in Q3FY24, and declined by 24.57 percent from Rs.123.45 crore in Q2FY25.
Regarding return ratios, the return on equity (ROE) stands at around 16.16 percent. The Net profit margin for FY24 stood at 7.65 percent. The stock is trading at a P/E (Price to Earnings) ratio of around 29.5, which is higher than the industry average of 29.5. The company also holds a current ratio of 0.88 which is lower than 1 time and a debt-to-equity ratio of 0.99.
In Q3FY25, the company’s revenue from Carbon Black contributes a major part of the revenue at 80.80 percent, Power contributes 3.18 percent, and Chemical by 16.01 percent.
Company’s future plans
PCBL has set growth plans for the period from 2024 to 2030 while aiming to improve its market presence and operational capacity. The company plans to boost production capacity to 1.4 million tons by 2026. Additionally, PCBL aims for a 45 percent increase in revenue over the next two years. They have a Joint Venture with Nanovace Technologies to develop nano-silicon products for Li-ion Batteries and they plan to infuse around $28 million in the next two years. The Green Power Generation capacity to expand to 134MW in FY26.
Shareholding Pattern
As of September 2024, the promoters held around 51.41 percent of PCBL, Foreign Institutional Investors (FII) held around 5 percent, Domestic Institutional Investors (DII) held 6.79 percent and the remaining 36.81 percent held by the public. Ace Investor Ashish Kacholia held around 1.03 percent stake in the company.
Company Profile
PCBL Ltd, formerly Phillips Carbon Black Limited, is India’s largest carbon black producer, incorporated in 1960. It operates five manufacturing units with a total capacity of 6,66,000 MT annually. The company focuses on carbon black for automotive tires and diversifies into power, FMCG, and IT sectors, serving over 30 countries globally.
Written by – Santhosh S
