Best Stocks to Buy in India for Short term – PCBL Ltd

Our 36th company in the Series of Best Stocks to Buy in India for Short term 2022 is PCBL Ltd.

This company is good for investing purpose or not ?

Let’s start with the Company profile

Company Profile :

PCBL Limited, formerly Phillips Carbon Black Limited, is carbon black manufacturer.

Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹4,699cr. We can check more fundamental details below in depth:

Company Fundamental Detail :

PE Ratio: 11.03

Sector PE Ratio: 13.38

PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.

PB Ratio : 1.79

Sector PB Ratio : 2.70

PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.

Dividend Yield : 4.02%

Sector Dividend Yield : 2.31%

Dividend Yield of this company is high than Sector. Dividend of this is Good than the peers of this company.

ROE: 16.39%

ROCE: 17.58%

ROE (Return on equity) and ROCE (Return on capital equity) is Average.

According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:

Company Financial Detail


We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2022  2021 2020  2019

Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2022 ,Company have 2,162.49Cr. debt.

Let’s check the Free Cash flow of the company

Free Cash flow

2022  2021 2020  2019

Debt Level: PCBL net debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: PCBL debt to equity ratio has reduced from 62.4% to 30% over the past 5 years.

Debt Coverage: PCBL debt is well covered by operating cash flow (37%).

Interest Coverage: PCBL interest payments on its debt are well covered by EBIT (34.6x coverage).

Share Holding Pattern

Promotor HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 2022 51.38% 10.18%2.74% 3.32%32.38%
Mar 2022 51.38%9.46% 2.09% 3.08%33.99%
Dec 2021 51.38%9.07%2.09%2.69% 33.77%
Sep 2021 51.38%11.95%3.60%1.11%33.48%

Above table showing there is no big change in Promotor Holding which is 51.38% in June 2022. FIIs invested in June 2022 with 10.18% and retail investor is 32.38% .

Investment Checklist for PCBL Ltd.

  • The company is currently profitable
  • Dividend of 4.01% is not well covered by earnings
  • Shareholders have been diluted in the past year
  • Earnings have grown by 13.5% per year over past 5 years
  • Debt level is low and not considered a risk
  • Share price has been stable over the past 3 months
  • The company’s earnings are high quality
  • Profit margins decreased but not substantially
  • At least 3 years of financial data is available
  • Revenue is meaningful (₹49B)
  • Market cap is meaningful (₹47B)
  • PCBL does not have negative shareholders equity.

According to its historical performance we can predict stock target.

Entry Buying Zone : Premium members can see only

Target: Premium members can see only

Time Horizon:Premium members can see only

Risk Profile: Premium members can see only

Hope you liked Our 36th company in the Series of Best stocks to buy in India for short term 2022. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss

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