Buy Phillips Carbon Black; target of Rs 202: Angel Broking

3286 Investors following Phillips Carbon. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Phillips Carbon Black; target of Rs 202: Angel Broking

Angel Broking is bullish on Phillips Carbon Black (PCBL) and has recommended buy rating on the stock with a target of Rs 202 in its May 4, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Maruti Suzuki India; target of Rs 1625: Motilal Oswal Buy UltraTech Cement; target of Rs 1318: PINC Research Buy Transformers; target of Rs 460: KRChoksey ALSO READ See previous views by Angel Broking See what other Experts & Brokerages are saying about Phillips Carbon See messages about Phillips Carbon Phillips Carbon BSE | NSE 31/05/12 Are Mutual Funds betting on Phillips Carbon?

Angel Broking is bullish on Phillips Carbon Black (PCBL) and has recommended buy rating on the stock with a target of Rs 202 in its May 4, 2011 research report.

"Phillips Carbon Black (PCBL) reported decent growth of 22.4% yoy in 4QFY2011 to Rs 444 crore (Rs 363), which was slightly above our estimates. OPM increased to 13.7% (11.6%), while PAT declined by 8.2% yoy to Rs 33 crore (Rs 36 crore), mainly due to low tax in 4QFY2010. The key positive from the result was higher realisations in the power segment. We remain positive on the business of the company, owing to the favourable demand growth in the carbon black industry in the years to come. We maintain our Buy recommendation on the stock."

"The power segment reported higher realisations during the quarter at Rs 3.13/unit, up from Rs 2.52/unit in 3QFY2011. Consequently, the segment reported an increase of 40.2% yoy in sales. The carbon black segment also recorded healthy 21.9% yoy growth to Rs 423 crore (Rs 347 crore). However, margin of the carbon black segment slipped by 367bp yoy, whereas the power segment's margin increased by 807bp yoy. Going ahead, we expect the power segment to continue showing improved performance."

"We maintain our positive outlook for PCBL, given strong demand growth in the industry. The commissioning of the 50,000MT plant in Mundra would also lend a boost to production. The power segment's realisations are also showing signs of firming up, which bodes well for the company. In view of high crude oil prices, we have increased our sales estimates for FY2012E and FY2013E by 7.5% and 9.8%, respectively, as realisations would go up accordingly. We have reduced our OPM estimates by 92bp and 119bp, respectively, to 13.1% for each year. We maintain our Buy recommendation on the stock with a target price of Rs 202," says Angel Broking research report.

What stocks does Aberdeen hold?

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment