PACL is a buy: Yatin Uppal, ICFR

Yatin Uppal, Senior Analyst, ICFR, in a chat with ET Now talks about PACL.

Why do you like Punjab Alkalies?

First of all I just want to do disclosure disclaimer that few members and associates and colleagues of organisation are already holding this stock. I really prefer PACL as it is one of the leading caustic soda manufacturing companies in northern India. The company is having a manufacturing capacity of 99000 TPA.

Caustic soda is consumed by various industries like fertilisers, soaps, detergents, chemical industries, organic and inorganic chemicals, pharma, so these are all the major sectors. All these sectors consume caustic soda in a bulky demand.

PACL is one of the leading stocks for which it is a most conservative buying at the current price. If we talk about the company, it is basically having two plants. One of its plants is located near Bhakra dam and second one is located near Satluj river. So both the plants are very well connected to rail and road transport which is a very good indication for any plant. Also, both the plants are in a situation where they get adequate water and power supply. So these are all major factors and crucial inputs for any plant like PACL.

What’s your price target here?

Price target is approximately 75 within a year.