Q1FY22 Company Update - Phillips Carbon Black - ICICI Direct

PCBL reported a healthy operational performance in Q1FY22.

- Net sales for Q1FY22 were at Rs. 1004 crore with carbon black sales volume at 109 KT, down 3% QoQ and consequent EBITDA/tonne at ~Rs. 15,000

- Consequent PAT in Q1FY22 was at Rs. 104 crore, down 18% QoQ

Key triggers for future price performance

- Expectation of robust volume growth in the tyre space amid cyclical recovery in the CV space as well as need for personal mobility driving sales in the 2-W & PV segment. This will ensure volume growth at tyre ancillaries

- Healthy double digit growth on anvil. We expect sales, PAT to grow at 26%, 23%, CAGR, respectively, in FY21-23E, building in 11.2% volume CAGR

- With greenfield expansion (120 KT) under execution, long term growth prospects are robust amid limited competition in overseas markets

- Trades at inexpensive valuation of <10x PE on FY23E EPS of Rs. 27.5/share

For details, click on the link below: Link to the Report

Shares of PHILLIPS CARBON BLACK LTD. was last trading in BSE at Rs. 269.3 as compared to the previous close of Rs. 248.65. The total number of shares traded during the day was 914669 in over 15651 trades.

The stock hit an intraday high of Rs. 275 and intraday low of 249.45. The net turnover during the day was Rs. 241606209.

Source : Equity Bulls

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