Ashish Kacholia made an unrealized profit of Rs 2.62 crore from this tyre supplier stock on July 11
The shares rallied 9.97 per cent today. Ashish Kacholia holds 25,02,495 quantities of this stock.
The company which helped Ashish Kacholia to make an unrealized gain of Rs 2.62 crore is Philip Carbon Black Limited (PCBL). Ashish Kacholia has a 1.36 per cent stake in the company.
PCBL is India’s largest and the world’s 7th largest carbon black manufacturer. The company has a 44 per cent market share in India. Carbon back is mainly used as a raw material for manufacturing tyres. MRF, Apollo, and JK tyre are a few of its clients.
In terms of revenue generated, March FY22 was the biggest quarter for the company ever. The company’s Q4 revenue was reported at Rs 1219 crore, a 40.5 per cent YOY and 5.4 per cent, sequentially growth.
The company has an ROE and ROCE of 18.4 per cent and 18.2 per cent, respectively, as per the March FY22 period ending. The company has a strong dividend payout of 4.46 per cent. Talking about valuations, the shares of PCBL are trading at a PE multiple of 10x.
The company is divided into 3 business segments- tyre, performance chemicals, and speciality chemicals. Around 65 per cent of the revenue comes from the tyre business, 27 per cent from performance chemicals, and 8 per cent from speciality chemicals. Performance chemicals applications include Injection moulding, Insulation, Agri-Films, Pipes, etc. Whereas speciality chemical has applications in Inks, Paints, Coatings, and Conductive.
About 70 per cent of the revenue is catered to the domestic market while the remaining 30 per cent comes from exports.
On July 11, the shares of Philip Carbon Black Limited were in strong momentum. At 3:30 pm, the stock closed at Rs 115.8 with 9.97 per cent gain for the day.