ICICI Direct has given a buy call on PCBL (Phillips Carbon Black Limited), with a target price of Rs 320, and the time period given by ICICI Direct when this stock can reach the given share price target is 12 months. Currently, PCBL is trading at Rs 232.
| Stock Outlook | |
|---|---|
| Current Market Price (CMP) | Rs 232 |
| Target Price | Rs 320 |
| 1 Year Return | 37% |
Key triggers for the future price as per the brokerage
Healthy double-digit growth on the anvil. We expect sales, PAT to grow at 23%, 16%, CAGR, respectively, in FY21-24E, building in 11.4% volume CAGR.
With greenfield expansion (~150 KT) under execution and successful strides made in the specialty carbon black domain, long-term growth prospects are robust amid limited competition in overseas markets.
Trades at an inexpensive valuation of <10x P/E on FY22E EPS of ~| 24/share.
Outlook
Introducing FY24E, we roll over our valuations and now value PCBL at unchanged target price | 320 i.e. 12x P/E on FY23E-24E avg. EPS.
Disclaimer
The above stock was picked from the brokerage report of ICICI Direct, investing in equity poses a financial risk, before investing please consult your financial advisor, we are not liable for any losses caused as a result of decisions based on the article.
