In Thursday’s trading session, the shares of the largest producer of carbon black in India surged 10.7 percent to hit a new 52-week high at Rs. 359.75 on BSE.
With a market capitalisation of Rs. 13,203.6 crore, the shares of PCBL Limited closed in the green at Rs. 349.8, up by 7.6 percent, as against its previous closing price of Rs. 325.05.
PCBL Limited, formerly Philips Carbon Black Limited, is primarily engaged in the business of manufacturing & sale of carbon black, and sale of power.
Group Chairman views on the RP-Sanjiv Goenka Group:
The chairman of the RP-Sanjiv Goenka Group (RPSG), Sanjiv Goenka, expressed strong support for the finance minister’s vision on modular nuclear plants, highlighting the group’s interest in the sector and the importance of upcoming government policies.
Goenka outlined the group’s growth plans for the next five years, expecting the market capitalisation to reach Rs. 2 lakh crore within 30 months, as reported by CNBC.
He announced entering into a major investment phase focused on research, capacity building, and overall growth, with the most significant expansion planned for the chemicals and carbon black sectors.
The group’s capex is projected to be around Rs. 35,000 crore over the next 12 to 18 months, and Rs. 50,000 crore over the following three years.
Group Chairman views on PCBL:
PCBL plans to further expand in chemicals through its acquisition of Aquapharm and increasing capacity in phosphonates, as well as backward integration into yellow phosphorous.
The company will expand its oil and gas chemicals business, revamp its Texas manufacturing facility, and add a new manufacturing plant in Riyadh alongside its existing blending facility.
PCBL will also enter the cathode chemistry for electric vehicle (EV) batteries. It has acquired Kinaltek in Australia for this purpose and has successfully tried this on a pilot scale.
Looking ahead, PCBL plans to further expand its specialty blacks segment, aiming for profit growth of at least 5x over the next five years, expects its profit to reach between Rs. 2,400-Rs. 2,500 crores, up from the current Rs. 490 crore, and expects margins to rise to 17-18 percent from 16 percent.
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PCBL Capacity Expansion Outlook:
The specialty expansion of 20,000 MTPA (Million Ton per Annum) at Mundra plant is underway and expected to commission this year, raising the Specialty Blacks capacity to 1.12 lakh MTPA by FY24-25.
Brownfield expansion of 90,000 MTPA carbon black is also started at the PCBL (TN) facility, set to be finished in FY24-25 in two phases (30,000 MTPA and 60,000 MTPA), boosting total capacity to 8.8 lakh MTPA next year.
The company is focusing on enhancing its supply chain, optimising product mix, and reducing costs.
The long-term outlook for the specialty segment remains strong, and PCBL expects the business potential to sustain the growth momentum.
The margins of speciality segment should continue to remain strong driven by shifts in global supply chains, consumption patterns, and robust demand.
Additionally, PCBL is exploring a new greenfield expansion, which will push its capacity beyond 1 million MTPA.
Financials:
The company experienced significant growth in its consolidated revenue from operations, showing a year-on-year rise of 40.4 percent from Rs. 1,374 crores in Q4 FY22-23 to Rs. 1,929 crores in Q4 FY23-24.
Similarly, its net profit increased during the same period from Rs. 102 crores to Rs. 111 crores, indicating a growth of around 8.8 percent YoY.
A meeting of the company’s Board is scheduled to be held on 8th August to consider and approve Q1 FY24-25 financial results.
Shareholding Pattern:
As per the latest shareholding pattern, the Promoters hold a 51.41 percent stake in the company, Foreign Institutional Investors (FII) hold a 5.29 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 35.66 percent and 6.4 percent stake in PCBL, respectively.
As of June 2024 shareholding data available with the BSE, the ace investor Ashish Kacholia holds a 1.03 percent stake in the company.
Stock Performance:
The stock has delivered multibagger returns of nearly 117 percent in one year and around 9 percent of positive returns in the last six months. So far in 2024, the shares of PCBL Limited have given positive returns of about 35.6 percent.
Written by Shivani Singh
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