PCBL Q1 Results Review - Visibility On Volumes; Spreads Improving: ICICI Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.PCBL Ltd. witnessed healthy Q1 FY24 volume growth of 12.5% YoY in carbon black driven by 22.6% rise in export volumes, which indicates that the strong overseas market opportunity is playing out. Company also witnessed a steady 6.7% volume growth in the domestic market. Specialty volumes grew 19.4% YoY. Gross profit per kg surprised positively with 14% QoQ jump to Rs 33.5 (with no one-offs) though it remains in line with the FY24 guidance of Rs 32/kg. Spreads are likely to benefit in FY25 and onwards on the back of improving mix towards specialty chemicals and the more yield-efficient Chennai facility. PCBL anticipates strong volume growth over the next few years due to Europe / U.S. looking to source more carbon black volumes from China / India amid muted capacity addition in Russia, Europe and U.S. PCBL anticipates capacity addition of 80-100 kilo-tonnes per annum over the next few years to meet the growing demand. Company is working on developing super-conductive-grade carbon black, which finds application in electric vehicle batteries. We have increased our earnings per share estimates by 1-2% over FY24E-FY25E as we raise volumes and spreads; however, the EPS improvement has been restricted due to higher tax rate. We have increased our FY25E price/earnings multiple to 13 times (from 12 times) as we believe the market is becoming favorable. Our revised target price is Rs 200 (earlier: Rs 180). Maintain 'Buy'. Risks:rise in competitive intensity from China or Russia in the export markets; andlower than expected spreads in India..Click on the attachment to read the full report:.TCS Q1 Results Review - Strong Deal Flow To Compensate For Low Near-Term Visibility: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

PCBL Q1 Results Review - Visibility On Volumes; Spreads Improving: ICICI Securities

PCBL anticipates capacity addition of 80-100 ktpa over the next few years to meet the growing demand.

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PCBL Q1 Results Review - Visibility On Volumes; Spreads Improving: ICICI Securities

PCBL anticipates capacity addition of 80-100 ktpa over the next few years to meet the growing demand.

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