ICICI Direct's research report on Phillips Carbon Black
Phillips Carbon Black (PCBL) is the largest manufacturer of carbon black (CB) domestically with market share in excess of 30%. C B is used as a reinforcement material in manufacturing tyres thereby catapulting PCBL as a proxy to play on domestic automobile sector PCBL is witnessing robust demand of its product profile and is running at peak capacity u tilisation levels (in excess of 90%) It has successfully turned around its operations through operational efficiencies (high u tilis ation levels), controlled raw material costs and savings accrued through captive power plants.
Outlook
We retain our BUY rating on the stock. We now value PCBL at Rs103 0 i.e. 1 5 .0 x P/E on FY 19E of Rs68.8.For all recommendations report, click here
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