IIFL has maintained its buy rating on Phillips Carbon Black with a target price of Rs 250 in its August 25, 2008 research report. "In our recent meeting, Phillips Carbon Black's (PCB) management said it was confident it would clock higher carbon black volumes in FY10, on the back of a major capacity expansion. Its 30MW waste-heat-recovery (WHR) plant at Durgapur is to start production shortly."
"We raise our FY10 EPS estimate by 12%. On our revised estimate, the stock is trading at 3.4x FY10ii EPS, which in our view is cheap in relation to the company's strong growth prospects. We maintain BUY with a revised target of Rs 250 (previous target Rs 220)," says IIFL's research report.
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