PCBL Q2 Results Review - Inline; Maintain 'Buy': IDBI Capital

IDBI Capital Report

PCBL Ltd.’s Q2 FY24 sales volumes were inline with our estimates. Its volumes grew 14% YoY to 130 kilo tonne (+6% QoQ). Importantly, its specialty black volumes increased by 32% QoQ to 15,574 due to increase in capacity utilisation and increase demand in global market.

Even Ebitda/tonne was higher by 4% QoQ to Rs 18,141 due to enhancement in operating efficiencies and better product mix. Overall Ebitda increased by 26% YoY to Rs 2.4 billion (+10% QoQ).

PCBL maintained that it targets Ebitda/tonne of over Rs 20,000/tonne in coming two-three years.

We broadly maintain our FY24/25 Ebitda estimates. We now value the stock at a price-to-earnings ratio of 12 times FY25E (earlier 11 times) EPS and derive a target price of Rs 233 (earlier Rs 215).

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