The shares of the largest carbon black manufacturer gained up to 6 percent after the company entered into a Joint Venture Agreement with Kinaltek, an Australian company, for setting up a manufacturing facility for nano silicon-based products
With a market capitalization of Rs 9,345.97 crore, the share of PCBL Ltd closed at Rs 247.60 per share, increasing around 1.04 percent as compared to the previous closing price of Rs 245.05 apiece.
According to the company filing, PCBL Ltd has signed a joint venture agreement with Kinaltek, an Australian business, to develop nano silicon technology for battery applications. The joint venture will be in a 51:49 ratio in favor of the company.
Furthermore, the Company shall own 51% of the shareholding in the joint venture company (“JV Company”) and shall be infusing a consideration of USD 16,000,000 in the JV Company, along with a commitment to infuse additional funds up to USD 28,000,000 in stages.
Moreover, This joint venture is being done to expand into the growing battery application market. The Company is in the process of creating a value-added product portfolio that can command high margins, and this is a major step towards the same.
ICICI Direct, one of the well-known brokerages in India, gave a ‘Buy’ call on the chemical stock with a target price of Rs 330 apiece indicating a potential upside of 33 percent from Monday’s price of Rs 247.60 per share.
Looking into PCBL Ltd’s performance, revenue climbed by 21 percent from Rs 1,363 Crore in Q3FY23 to Rs 1,657 Crore in Q3FY24. During the same duration, net profit climbed by 52 percent from Rs 97 crore to Rs 148 crore.
Ace investor Ashish Kacholia owns 70,84,990 shares, or 1.88 percent of the firm, as of the December quarter of 2023.
The stock gained 51.64 percent in six months and 122.52 percent in a year. If an investor invests Rs 1 lakh in the company, it will be worth Rs 2.22 lakhs in one year.
PCBL Ltd is India’s largest and the world’s seventh-largest carbon black manufacturer, with a strong position in specialty chemicals. The company today runs four facilities with an annual capacity of 623 KTPA, including a 98 MW green power plant.
PCBL Limited, situated in India, manufactures carbon black. The Company operates in the materials and specialty chemicals division, producing roughly 6,03,000 metric tons per year and generating 98 megawatts per hour of green electricity. It has operations in more than 45 countries.
Written by:- Abhishek Singh
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