PCBL - Focus On Volume Growth To Drive Revenue: PL Capital

PL Capital Report

We recently visited the Palej plant of PCBL Ltd. and had an opportunity to meet the management of the company. This plant is strategically located within the thriving Gujarat–Maharashtra automobile corridor, offering seamless access to ports for efficient raw material sourcing and ensuring cost effective logistics for the supply of carbon black to the tire industry.

The 1,42,250 million tonnes per annum plant is divided into six lines and is capable of producing carbon black as well as specialty carbon black. The plant also hosts a 19MW captive power plant. The R&D center located within the plant, plays an important role in the development of new carbon black grades.

PCBL has also formed a joint venture with Kindia, an Australia-based company, to develop nanosilicon products for Li-ion batteries. Pilot plant for the same is being set up in Palej, and is expected to be completed in the next five-six months. The company reported a revenue increase of 52% in H1 FY25 and expects continued strong performance in upcoming quarters. PCBL’s stock is currently trading at 37.3x FY24 EPS.

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