INTRADAY TIPS FOR OCTOBER 29-10-2012 MONDAY

SCRIP

ACTION

TRIGGER

TARGET 1

TARGET 2

STOPLOS

ALLCARGO

BUY

131.50

133.25

136.00

130.00

IDFC

BUY

157.00

158.50

160.60

155.50

Tuesday, June 21, 2011

Phillips Carbon Black


Phillips Carbon Black

BSE: 506590   NSE: PHILIPCARB
CMP 134.00
Face Value (Rs.) 10.00
Equity Capital (Rs. Crs) 33.22
Market. Capitalization (Rs. Crs) 462
52-wk High / Low (Rs.) 242/113
Company profile:- Philips Carbon Black (PCBL), a member of RP Goenka
Group was incorporated on March 30, 1960 and is a leading
manufacturer of various grades of carbon black in India. Columbian
Chemical Corporation, US, a leading international producer of rubber
blacks is the Technical Collaborator of the company
Key Takeaways
Capacity expansions on full swing. To reach 677,000 MT from 360,000 MT
by end of CY2013.
 The capacity expansion at Mundra for 50,000 MT of carbon black
along with a 8MW co generation power plant are expected to be
complete in CY 2011. The Duragpur plant is also undergoing an
expansion by 12,000 MW and is expected to be complete by
Q4FY12. With these the total production capacity of carbon
black shall reach 422,000 MT and power generation capacity to
76MW by end of FY12. The funding is done mainly through
internal accruals.
 All formalities have been complete with regard to the Phase 1
project of 60,000 MT carbon black in Vietnam at a cost of $63
Mn. Work has began and is expected to be commissioned
towards the end of CY 2012. The Phase 2 project is of 55,000 MT
at a cost of $21Mn and is expected to be commissioned in
CY2013. The two projects will also have co generation power
capacities of 12MW and 6MW respectively. The whole project is
in the form of a Joint Venture in a ratio of 80:20 where PCBL will
hold 80% and the rest by 3 local tyre companies. It is to be
funded through a debt equity ratio of 2:1. The company has got
a 40% market share in Vietnam is expected to benefit immensely
as the total demand which currently stands at 65,000 MT is
expected to reach 100,000 MT by 2012.
New Greenfield expansions and backward integration
 The company is in talks for setting up a new carbon black plant in
South India of about 140,000 MT. This plant is expected to be
complete sometime in CY 2013. Details are yet to be finalized.
 A coal tar distillation plant is expected to be set up in Angul,
Orissa for backward integration. Coal Tar is a byproduct of the
steel manufacturing process and the company plans to reprocess
it to be used as a substitute of the main raw material, Carbon
Black Feed Stock which has to be imported from the USA.
Aspires to become No 4/5 at the international level in the next 2-3
years
 The company which currently ranks 8th aspires to become No 4/5
in the next 2-3 years time when all the capacity expansions are
complete.

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