Phillips Carbon: Second wave slams brakes on recovery theme
The second wave of COVID is likely to have an impact on domestic demand for discretionary players in auto and consumer durables. Phillips Carbon is one such name
April 23, 2021 / 11:22 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Phillips Carbon Black Limited (PCBL) (CMP: Rs 204; Market Cap: Rs. 3,528 crore), the leading domestic manufacturer of carbon black, posted strong topline growth in the quarter gone by. This was on account of the opening up of the economy and elevated product price realisations.
However, the company also witnessed sequential moderation in margins, which indicate that supply-chain dislocations are getting sorted and margins are likely to mean revert to the historical average of mid-teens.
Further, towards the end of the...