PCBL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.8

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📊 Fundamental Analysis Report

• Stock Code: PCBL
• Market Cap: ₹13,702 Cr
• Current Price: ₹363
• 52W High/Low: ₹499 / ₹331
• EPS: ₹9.50
• Stock P/E: 38.2 vs Industry P/E: 38.3
• PEG Ratio: 23.3 ❗ (Overvalued)
• Book Value: ₹103 | P/B Ratio: ~3.5 ✅
• ROE: 12.8% | ROCE: 13.2% 🟡
• Debt to Equity: 0.77 ⚠️ (Moderate Leverage)
• Dividend Yield: 1.66% 💰
• Quarterly PAT: ₹59.6 Cr (↓53.8%)
• RSI: 39.5 | MACD: -5.03 📉

✅ Positive

• Reasonable P/B ratio (~3.5) indicates fair valuation relative to assets.
• Dividend yield of 1.66% adds income potential for long-term holders.
• Positive institutional sentiment: FII and DII holdings increased.
• Strong 5-year return of 992.7% and 21.5% quarterly revenue growth.

⚠️ Limitation

• PEG ratio of 23.3 suggests significant overvaluation relative to growth.
• Quarterly profit dropped sharply by 53.8%, raising concerns about earnings volatility.
• Moderate debt level (D/E: 0.77) could pressure margins in high-rate environments.
• Technical indicators (RSI & MACD) show bearish momentum; price below DMA 50 & 200.

📉 Company Negative News

• Q4 PAT fell from ₹93.1 Cr to ₹59.6 Cr, a steep decline in profitability.

📈 Company Positive News

• PCBL rebranded as PCBL Chemical Limited, expanding into specialty chemicals and sustainable solutions.
• Strong historical performance and niche positioning in carbon black and industrial specialties.

🏦 Industry

• PCBL operates in the specialty chemicals sector, which is seeing strong demand in India.
• Industry P/E of 38.3 aligns with PCBL’s valuation, suggesting sector-wide optimism.
• Carbon black and specialty chemicals are key inputs for auto, tire, and industrial applications.

🧭 Conclusion

• Entry Zone: ₹340–₹355 (near support and RSI oversold)
• Long-Term View: PCBL has strong historical returns and sector potential, but current valuation and earnings volatility warrant cautious accumulation.

Sources

stockpricearchive.com

StockPriceArchive

Telangana NavaNirmana Sena

Telangana NavaNirmana Sena