Eastern Financiers

Philips Carbon (Buy)

CMP: ₹156.70

Target: ₹203

Phillips Carbon Black (PCBL) is the eighth largest carbon black manufacturer in the world and the largest manufacturer and supplier of carbon black in the country. PCBL’s major customers are from tyre industry, power sector, elastomer, plastic, paints and ink manufacturing industries. PCBL also manufactures customised product specific to its customer. Part of the illustrious RP-Sanjiv Goenka Group of Companies, PCBL is known for its technical collaborations with foreign entities and state-of-the-art manufacturing facilities.

Highlights: Government’s thrust on infrastructure development is expected to receive a major boost. With inflation going down, industry may see southward journey of interest rate which will be positive for automobile sector and consequently demand for tyres/carbon black will increase. Demand for carbon black in India is expected to grow at 6-7 per cent during the next 2-3 years and is likely to receive significant boost when new capacity for tyre manufacturing hits the market. PCBL is well poised to cater to high demand as and when such need arises in the domestic market. PCBL has commissioned a facility to produce 50,000 mtpa carbon black at its Kochi plant with this, Company’s total capacity has increased to 4.72 lakh mtpa.

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