Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
Webinar :Join an expert panel for a webinar on Smart investments for a secure retirement January 28, 2021. Register now!

Buy Phillips Carbon Black; target of Rs 210: ICICI Direct

ICICI Securities is bullish on Phillips Carbon Black recommended buy rating on the stock with a target price of Rs 210 in its research report dated December 28, 2020.

December 28, 2020 / 03:58 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Phillips Carbon Black


The Commerce Ministry has concluded its study thereby proposing to extend anti-dumping duty (ADD) on imports of carbon black (used for rubber applications) into India; largely from China and Russia. The ministry opined that imports without ADD will cause substantial injury to the domestic carbon black industry. The study proposes to impose a duty of US$494 per tonne on carbon black origination from China and US$36.2 per tonne on carbon black originating from Russia and other countries. The said proposal is likely to be approved by the Finance Ministry with final notification expected by December end. Extension of ADD helps protect sales volumes of domestic carbon black players with consequent better operational efficiencies and is not a medium to increase prices to import parity levels. It is positive for all carbon black players, especially Phillips Carbon Black (PCBL) given its market leadership domestically (market share of ~35%+).


Outlook


PCBL has a healthy B/S (limited leverage), capital efficient business model (RoCE>15%) and generates robust cash flow from operations (CFO yield >15%). We maintain our BUY rating on the stock with a revised target price of Rs 210 (Rs 180 earlier) valuing it at 10x P/E on FY23E EPS of Rs 21.0. Conservatively, as of now, we have not built in any volumes from greenfield capex under implementation as the company awaits regulatory approvals.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

Broker Research
first published: Dec 28, 2020 03:58 pm

stay updated

Get Daily News on your Browser
Sections