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IDBI Capital Report
PCBL Ltd.'s Q4 FY24 sales volumes were in line with our expectations and reported highest ever sales volume of 142,000 in Q4 FY24, up 20% YoY. Its carbon black export volumes grew 37% YoY and contributed 38% to its total volumes. Ebitda margin improved 267 basis points YoY to 16.0% in Q4 FY24.
The recently commissioned facility in Chennai operated at 60% capacity utilization in Q4 FY24 and is expected to achieve full capacity utilization by Q4 FY25.
Further, PCBL expects volume growth of 11-12% over next two years in carbon black business. We revise upward our FY25/FY26 EPS estimate by 39%/11% and now value the stock at a PER of 15 times FY26E EPS to derive a target price of Rs 299 (earlier Rs 343).
Given the recent correction in stock price we upgrade our rating from Hold to Buy.
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