Phillips Carbon Black - BUY
CMP Rs191, Target Price Rs250, Upside 30.9%
Phillips Carbon Black (PCB), a leading manufacturer of carbon black, is well poised to ride the boom in the domestic tyre industry. It is increasing its domestic manufacturing capacity and setting up a greenfield project in Vietnam . Sale of power generated from off gases arising from carbon black plants will be a money spinner in the near term. With revenue CAGR of 23% and PAT CAGR of 21% during FY10-12E, the stock is attractively valued at 4.3x FY11E EPS of Rs51.8. We recommend BUY with a six-month target price of Rs250.
http://content.indiainfoline.com/wc/research/researchreports/PCB_060710.pdf
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