Chemical stock surges after stock split. ICICI Securities has 'Buy' tag
Premium- PCBL (erstwhile Phillips Carbon Black) had fixed April 12 as the record date for stock split in the ratio of 1:2
Shares of PCBL (erstwhile Phillips Carbon Black) surged more than 3% on the BSE at ₹133 apiece in Tuesday's early trading session on the record date for sub-division or stock split of one equity share to two equity shares.
PCBL had fixed April 12, 2022 as the record date for stock split in the ratio of 1:2 i.e. one existing share of face value ₹2 gets sub-divided into two shares. The chemical stock started trading ex-split from Monday (April 11, 2022).
Domestic brokerage and research firm ICICI Securities has retained its positive view on Phillips Carbon Black shares and has maintained Buy rating on the stock with valuing PCBL at stock split adjusted target price of ₹160.
“Healthy double digit growth on anvil. We expect sales, PAT to grow at 23%, 16%, CAGR, respectively, in FY21-24E, building in 11.4% volume CAGR With greenfield expansion (around 150 KT) under execution and successful strides made in the speciality carbon black domain, long term growth prospects are robust amid limited competition in overseas markets, which could act as key triggers for the future price performance," as per the brokerage.
PCBL, a part of RP-Sanjiv Goenka Group, is the among the largest carbon black manufacturer in India. PCBL share price has grown around 3x in the past five years.
PCBL has a healthy margin profile (15%+), a capital efficient business model (RoCE>15%) with limited leverage on balance sheet (~0.3x debt: equity as of FY21), ICICI Securities added.
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The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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