ICICI Direct's research report on Phillips Carbon Black
Phillips Carbon Black (PCBL) is the leading manufacturer of carbon black, which is essentially used as a reinforcing material for manufacturing tyres. PCBL also derives ~6% of sales volume from speciality carbon black, which fetches high margins and finds application in paints, plastics among others It realises healthy margin profile (15%+), has a capital efficient business model (RoCE>15%) with limited leverage on b/s (~0.3x debt: equity)
Outlook
We maintain our positive view and retain BUY rating on the stock We value PCBL at Rs 330 i.e. 12x P/E on FY23E EPS
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