Buy PCBL, target price Rs 160: ICICI Direct

ICICI Direct has buy call on PCBL with a target price of Rs 160. The current market price of PCBL Ltd. is Rs 112.3.
Time period given by analyst is one year when PCBL Ltd. price can reach defined target.

PCBL Ltd., incorporated in the year 1960, is a Small Cap company (having a market cap of Rs 2115.68 Crore) operating in Tyres sector.


PCBL Ltd. key Products/Revenue Segments include Carbon Black, Power and Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1230.97 Crore, up 5.65 % from last quarter Total Income of Rs 1165.09 Crore and up 40.22 % from last year same quarter Total Income of Rs 877.91 Crore. Company reported net profit after tax of Rs 88.26 Crore in latest quarter.


Investment Rationale
Revising estimates and rolling over valuations to FY24E, the brokerage values PCBL at unchanged target price of Rs 160 i.e. 12x P/E on FY24E EPS

Promoter/FII Holdings
Promoters held 51.38 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.46 per cent, DIIs 5.17 per cent.