PCBL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | PCBL | Market Cap | 11,433 Cr. | Current Price | 291 ₹ | High / Low | 437 ₹ |
| Stock P/E | 46.7 | Book Value | 103 ₹ | Dividend Yield | 2.06 % | ROCE | 8.53 % |
| ROE | 6.29 % | Face Value | 1.00 ₹ | DMA 50 | 280 ₹ | DMA 200 | 318 ₹ |
| Chg in FII Hold | -0.12 % | Chg in DII Hold | 0.79 % | PAT Qtr | 47.0 Cr. | PAT Prev Qtr | 44.7 Cr. |
| RSI | 56.9 | MACD | 6.84 | Volume | 21,69,764 | Avg Vol 1Wk | 17,28,844 |
| Low price | 226 ₹ | High price | 437 ₹ | PEG Ratio | -2.59 | Debt to equity | 0.65 |
| 52w Index | 30.4 % | Qtr Profit Var | -50.4 % | EPS | 5.99 ₹ | Industry PE | 47.0 |
📊 PCBL shows weak-to-moderate fundamentals with ROE at 6.29% and ROCE at 8.53%, reflecting limited efficiency in generating returns. The P/E ratio of 46.7 is aligned with the industry average (47.0), suggesting fair but not cheap valuation. Dividend yield of 2.06% provides some income support. Debt-to-equity ratio of 0.65 is relatively high, raising leverage concerns. EPS of 5.99 ₹ is modest, and the negative PEG ratio (-2.59) indicates poor growth prospects. Quarterly PAT improved slightly (47 Cr. vs 44.7 Cr.), but overall profit variation (-50.4%) highlights volatility.
💰 Ideal Entry Price Zone: 250 ₹ – 270 ₹, closer to its recent low of 226 ₹ and below DMA 200 (318 ₹), offering valuation comfort.
📈 Long-Term Holding Guidance: PCBL is not suitable for long-term accumulation unless ROE/ROCE improve and debt levels reduce. Best considered for medium-term trades with exit near 340–360 ₹ if momentum sustains. Conservative investors should avoid long-term holding until fundamentals strengthen.
✅ Positive
- P/E ratio (46.7) aligned with industry average (47.0).
- Dividend yield of 2.06% provides income support.
- DII holding increased (+0.79%), showing domestic institutional confidence.
- Technical indicators (RSI 56.9, MACD 6.84) show neutral-to-positive momentum.
⚠️ Limitation
- Weak ROE (6.29%) and ROCE (8.53%).
- High debt-to-equity ratio (0.65).
- Negative PEG ratio (-2.59), indicating poor growth prospects.
- Quarterly profit variation (-50.4%) highlights earnings volatility.
📉 Company Negative News
- Quarterly PAT variation (-50.4%) shows sharp decline in profitability.
- FII holding decreased (-0.12%), reflecting reduced foreign investor confidence.
📈 Company Positive News
- DII holding increased (+0.79%), showing domestic institutional support.
- Trading volume above weekly average, indicating liquidity strength.
🏭 Industry
- Industry P/E at 47.0, aligned with PCBL’s 46.7, suggesting fair valuation.
- Chemicals and carbon black sector is cyclical, dependent on auto and industrial demand.
🔎 Conclusion
PCBL is moderately valued but faces profitability and debt concerns. Entry is advisable near 250–270 ₹ for risk-tolerant investors. Long-term holding is not recommended unless ROE/ROCE improve and debt reduces. Medium-term traders may target exits near 340–360 ₹ if momentum sustains.