PCBL Q1 Review - Expects Volumes, Efficiency Gains To Drive Consistent Earnings Growth: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.PCBL Ltd. Q1 FY25 volume growth accelerated with new capacity addition alongside spreads remaining favourable. The company expects volumes to grow at a compound annual of 11–12% p.a. over the next five years; and plans for large capex to capture the opportunity.It also anticipates Ebitda/kg to enhance by Rs 4-5/kg in four–five years on better product mix and efficiency gains. Aquapharm also plans to grow revenue by 15–20% p.a. over the next few years, as it expands market share in phosphonates in conjunction with a sharp rise in capacities in green chelates and other products.PCBL expects to increase net profit to Rs 25 billion (5 times) in next five years; which is ambitious, in our view. We cut our FY25E earning per share by 1.5%, but raise FY26E earning per share by 19%, factoring in management optimism.Our target price is increased to Rs 375 (from Rs 290), as we raise FY26E multiple to 20 times (from 18 times). Downgrade to 'Hold' (from Buy)..Click on the attachment to read the full report:.Hindustan Copper Rises To Over One-Week High After Q1 Profit More Than Doubles.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

PCBL Q1 Review - Expects Volumes, Efficiency Gains To Drive Consistent Earnings Growth: ICICI Securities

The brokerage sees strong opportunity in Europe, arising from the complete ban on Russian carbon black, effective July 2024.

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PCBL Q1 Review - Expects Volumes, Efficiency Gains To Drive Consistent Earnings Growth: ICICI Securities

The brokerage sees strong opportunity in Europe, arising from the complete ban on Russian carbon black, effective July 2024.

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