PCBL Shares Hit Fresh Lifetime High After JV To Expand Into Battery Market
PCBL will own 51% shareholding in the joint venture with Australia based Kinaltek.
Shares of PCBL Ltd. rose for the second consecutive day to hit a fresh lifetime high on Thursday after the company announced a joint venture with Australia based Kinaltek Pty.
PCBL will own 51% shareholding in the joint venture. It will infuse a consideration of $16 million in the JV company. Up to $28 million will be added as funds in stages, to set up a manufacturing facility, an exchange filing said.
Kinaltek specialises in advanced technologies for production of inorganic powders. The company has developed nano silicon technology for battery application.
Through this joint venture, PCBL wants to expand into the growing battery application market, where there is immense potential of profitable growth, the filing said.
"The company is in the process of creating a value-added product portfolio which can command high margins and this is a major step towards the same."
Shares of PCBL rose as much as 5.8%, before paring gains to trade 1.3% higher at 10:17 a.m. This compares to a 0.2% decline in the NSE Nifty 50.
The stock has risen 108.99% on a year-to-date basis. Total traded volume so far in the day stood at 3 times its 30-day average. The relative strength index was at 76.64, implying that the stock may be overbought.
Of the 11 analysts tracking the company, 10 maintain a 'buy' rating and one recommends a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 4%.
