Buy Phillips Carbon Black; target of Rs 270: Angel Broking - Moneycontrol.com -

Angel Broking is bullish on Phillips Carbon Black and has recommended buy rating on the stock with a target of Rs 270 in its September 3, 2010 research report.

“Phillips Carbon Black (PCBL), part of the RPG Group, is the leading producer of carbon black in India, with ~48% of the total installed capacity in FY2010. Currently, with ~65% of the total carbon black production in the country being consumed by the tyre industry, PCBL is well poised to benefit from the rising demand for tyres going ahead. Moreover, we expect the company’s power segment to start contributing substantially to its bottom-line in FY2011 and FY2012 and provide stability to its earnings. We have valued PCBL on the sum of- the parts valuation methodology and arrived at a target price of Rs 270 wherein we have valued PCBIL’s carbon black segment at Rs 144 per share (1x FY2012E P/BV) and the power segment at Rs 126 per share (NPV method). We Re-initiate Coverage on the stock with a Buy recommendation,” says Angel Broking research report.

From: http://www.moneycontrol.com/news/recommendations/buy-phillips-carbon-black-targetrs-270-angel-broking_483065.html