Multibagger Stock: PCBL Shares Jump 24% in a Month
PCBL, a major player in the carbon black industry, has seen a surge of nearly 24% in its share price since April. The stock closed at Rs. 137.65 on BSE, up 0.92% on the day. PCBL has been a Crorepati Stock, turning investors into millionaires with just a Rs. 1 investment in 21 years. Experts are predicting further gains, with the stock expected to reach Rs. 180, up 31% from its current levels.
77,000 Rupees Investment Turns into Crores
In 2002, PCBL shares were available for just Rs. 1.05. Today, the stock is trading at Rs. 137.65, up by a whopping 13,010%. This means that an investment of just Rs. 77,000 in PCBL shares 21 years ago would have turned into crores today.
PCBL’s Business Model and Financial Health
PCBL produces carbon black, which is used as a reinforcing material in tires, with around 9% of its sales volume coming from specialty carbon black. The company’s margin profile is healthy, and its business model is capital efficient. In Q4 2021, PCBL’s gross profit per ton increased by 18% to Rs. 29,234.
Future Outlook
PCBL is expected to benefit from an improvement in auto sales, resolution of supply chain issues in important markets like the US and Europe, and economic activity picking up in the coming quarters. The company is also expanding its capacity. ICICI Direct has set a target price of Rs. 180 for the stock, while IDBI Capital has set a target price of Rs. 152.
Disclaimer
The advice and views expressed on Moneycontrol.com are those of experts and brokerage firms and not of the website or its management. Users are advised to consult certified experts before making any investment decisions.
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