PCBL share price rises 4% on allotment of 116 acre land from Andhra govt

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Shares of PCBL surged up to 4.41 per cent at Rs 449.75 a piece on the BSE in Thursday’s intraday trade. This came after the RP Sanjiv Goenka Group company received approval for allotment of 116.62 acres of land  of the Naidupeta MPSEZ from the Government of Andhra Pradesh. 

 

PCBL received the nod on its proposal of setting up a plant for manufacturing New Rubber Black & Value-added chemicals at MPSEZ, Naidupeta with an investment of Rs 3,718 crores, and generating direct employment to 200 people. For this the company had requested for allotment of 116.62 acres at a cost of Rs.1,948- per sqm.

 

After careful consideration, the State Investment Promotion Board granted the land to PCBL subject to the company adhering to the definite time lines for implementation of the project and investment and employment commitment from the company.

 

Philips Carbon Black (PCBL) is the largest Carbon Black producer in India. Carbon Black which is the main raw material in the production of automotive tyres is produced using carbon black feedstock (CBFS) and tar oil. The company is also engaged in production of specialty chemicals and generation of electricity for the purpose of captive consumption and sale of surplus to outsiders.  

On the financial front, PCBL reported a 8.1 per cent increase in net profit for second quarter ending September 30, 2024, (Q2FY25) reaching Rs 118 crore, up from Rs 109 crore in Q2 of the previous year. The company's revenue surged 59 per cent to Rs 2,141 crore, down from Rs 1,347 crore in the same quarter last year. 

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 70 per cent to Rs 358.2 crore in the first quarter of this fiscal over Rs 210.7 crore in the corresponding period in the previous fiscal. Ebitda margin stood at 16.7 per cent in the reporting quarter compared to 15.6 per cent in the corresponding period in the previous fiscal. 

PCBL’s stock performance has outperformed the market year to date as it has fallen 67 per cent, while gaining 67 per cent in the last one year. In comparison BSE Sensex has risen 11 per cent year to date and 21 per cent in a year. 

 

The company has a total market capitalisation of Rs 17,788.75 crore.  Its shares are trading at a price to earnings multiple of 30.57 times and at an earning per share of Rs 13.99. 

 

At 10:50 AM; the shares of the company were trading 0.64 per cent lower at Rs 428 a piece. By comparison, the BSE Sensex was down 0.88 per cent at 79,527.44 level.