PCBL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📉 Fundamental Stock Analysis: PCBL Ltd. Rating: 3.6

🧾 Core Financials & Profitability

Returns

ROE (12.5%) and ROCE (11.9%) indicate moderate capital efficiency — neither weak nor exceptional.

EPS of ₹10.9 is modest, aligned with mid-cap industrial performance.

Profit Momentum

Qtr Profit declined from ₹100 Cr to ₹94 Cr — -6% sequential, -20.2% YoY → signals earnings pressure.

Debt & Leverage

Debt-to-Equity of 1.51 is high for a manufacturing company — potential risk if rates rise or cash flows tighten.

Dividend yield of 1.41% is reasonable but not compelling.

💰 Valuation Indicators

Metric Value Analysis

P/E Ratio 35.9 Near industry average (37.6) — fairly valued

PEG Ratio 28.2 Extremely high → suggests weak growth vs. valuation

P/B Ratio ~4.0 Reflects premium valuation on book equity

DMA & RSI Below DMA 50 & 200, RSI 39.9 Weak technicals; short-term bearish sentiment

MACD -3.65 Negative trend continues; price may consolidate

🧠 Business Model & Competitive Edge

Company Profile: PCBL is a leading producer of carbon black used in tyres, rubber, plastics, inks, and coatings.

Moat Assessment

Benefits from scale and established customer relationships, especially in the tyre industry.

High capital intensity and commoditized product mean pricing power is limited.

Operational leverage is visible, but growth appears muted in recent quarters.

📌 Investment Strategy

Entry Zone Recommendation: Watch for entry around ₹340–₹360 — below book value and closer to technical support.

Holding Guidance

Suitable as a tactical value play, not necessarily a core long-term compounding bet.

Track debt reduction, margin trends, and revival in profit growth.

Institutional interest slightly rising (DII +0.96%) is a mild positive.

If you'd like a visual chart of valuation ratios or want to compare PCBL against peers in the specialty chemicals space, I’ve got you covered. Just let me know how deep you want to go.

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