One of the chemical stocks engaged in the business of production of carbon black, specialty chemicals, and generation of electricity for captive consumption and sale of surplus to outsiders. The stock has jumped 1.83 percent after announcing the commissioning of 20,000 MTPA capacity at Mundra Plant.
Stock Price Movement:
In Friday’s trading session, PCBL Limited’s share jumped to an intraday high of 1.83 percent from the previous close of Rs. 431.35. The stock opened at Rs. 438.80 and is currently trading at Rs. 429.50, with a high of Rs. 439.35 and a low of Rs. 427.40. The market capitalization now stands at approximately Rs. 16,193.15 crore.
What Happened:
PCBL Chemical Limited is pleased to announce the commissioning of the second and final phase of its 40,000 MTPA specialty chemical capacity at the Mundra Plant, Gujarat, on November 28, 2024.
This expansion adds 20,000 MTPA to the existing capacity, bringing the company’s total manufacturing capacity to 7,90,000 MTPA.
The company has received earlier approval from the Andhra Pradesh government to set up a new plant at Mundra Port SEZ, Naidupeta. The company will invest Rs. 3,718 crore to produce rubber black and value-added chemicals, creating 200 jobs.
Capacity Expansion:
The company is pursuing aggressive capacity expansion across various sectors, including carbon black, water treatment, detergent, and oil and gas chemicals under Aquapharm. Carbon black capacity is set to reach 1 million tonnes by FY27-28.
Additionally, a 20,000 MTPA specialty project in Mundra and a 30,000 MTPA brownfield expansion in Tamil Nadu are expected to be commissioned in Q3 FY25.
Joint Venture with Kindia Private Limited
PCBL has formed a joint venture with Kindia Private Limited for Nanovace Technologies to develop nanosilicon products for lithium-ion battery anodes, with PCBL holding a 51% stake.
The venture plans an investment of $44 million to acquire intellectual properties and establish a pilot plant, with commercial manufacturing to follow.
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Segment Performance:
In Q2 FY25, the Tyre segment achieved sales of 82,383 tonnes, while the performance chemicals segment recorded 49,183 tonnes. Specialty sales reached a record high of 17,127 tonnes.
Additionally, power generation saw a 25% increase, rising from 167 MU in Q2 FY24 to 209 MU.
Recent quarter results and ratios:
PCBL Limited’s revenue has increased from Rs. 1,487 crore in Q2 FY24 to Rs. 2,163 crore in Q2 FY25, which has grown by 45.46 percent. The net profit of PCBL Limited has no change in YOY, from Rs. 123 crore in Q2 FY24 to Rs. 123 crore in Q2 FY25.
PCBL Limited’s revenue and net profit have grown at a CAGR of 12.71 percent and 5.09 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 14.2 percent and 16.2 percent, respectively. The debt-to-equity ratio of the company is to be 0.1.29x. PCBL Limited’s EPS is to be Rs. 13.3.
Company Overview:
Incorporated in 1960, PCBL Limited, a part of the RP-Sanjiv Goenka Group, is a leading carbon black manufacturer in India. The company operates in the materials and specialty chemicals segment, with a production capacity of 603,000 metric tons annually and generating 98 MW of green power.
PCBL’s products include specialty chemicals for plastics, inks, coatings, and high-tech applications like rechargeable batteries. With plants in West Bengal, Gujarat, and Kerala, the company serves over 45 countries across various sectors, including automotive, agriculture, and industrial applications.
Written By – Nikhil Naik
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