Buy Multibagger Tyres Sector Stock For 34% Return, Target Time 1-Year: ICICI Securities

ICICI Securities has given buy call to Tyres sector stock, PCBL Ltd with a target price of Rs 170. If you buy the stock of PCBL at its current market price of Rs 127 apiece, it can give you potential return of up to 34% in a target time period of 1-year. The company has a market capitalisation of Rs 4799 crore. Check key takeaways below:

1. PCBL Ltd Stock Outlook

The last trading price of PCBL Ltd is Rs 127 apiece with 52-week high at Rs 153 apiece and 52-week low at Rs 89 apiece, respectively.

2. PCBL Ltd Financial Performance

EBITDA expanded 0.8% YoY to Rs1.9bn. Revenue grew 52.5% YoY led by higher realisations, which rose 54.7% YoY to Rs139.8/kg. Gross profit rose 5.4% YoY to Rs3.7bn on expansion in spreads. Employee cost rose 18% YoY and other expenses were up 8% YoY. Net profit was down 4.6% YoY to Rs1.2bn due to lower ‘other income'. Tax rate rose slightly to 21.6% in Q2FY23 vs 20% in FY22.

3. PCBL Ltd Return

The stock has given a return of 38% in last 5-years, 101% in last 3-years, and 16% in last 1-year. The stock has declined 9% in last 1 week.

4. PCBL Valuation

According to ICICI Securities, "We maintain our estimates and target price of Rs170 (12x FY24E EPS). Reiterate BUY. Key risks: Lower than expected volume demand, particularly in export markets; and higher than expected impact of market normalisation on gross profit/kg."

5. PCBL About

PCBL, a part of RP-Sanjiv Goenka Group, was set up by Mr. K. P. Goenka in 1960 and started production at Durgapur with a production capacity of 14,000 MT per annum. For over six decades, PCBL has been playing a pioneering role in the performance materials and specialty chemicals segment, with a current production capacity of 6,03,000 MT per annum and generating 91 MW per hour of green power. Today, PCBL is the largest carbon black manufacturer in India and a strong global player with a significant customer base in 45+ countries, according to its professional website.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.