Chemicals
Carbon Black
from 366 today
PCBL's strong Q1FY27 print was aided by non-recurring inventory gains, and while a near-term hiccup is expected in Q2, the company retained its EBITDA/kg growth guidance of 14-15% for FY27. We raise FY27/28E EBITDA and the target price to INR 315 as we raise the P/E multiple to 20x, maintaining our REDUCE rating.
PCBL reported a strong Q1FY27 driven by higher realizations and robust domestic volumes, though inventory gains are expected to normalize in Q2. We upgrade PCBL to 'Accumulate' with a revised target price of INR388, valuing the stock at 25x FY28E EPS.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
