PCBL Chemical (PCBL)

FairStock Score: 52/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a Buffett-Graham investor, so I ask whether PCBL Chemical is a wonderful business at a fair price. Carbon black is cyclical and commodity-like, so I demand a margin of safety. The positives: promoter holding is 53.38%, sales grew 17% and five-year revenue CAGR is 20.97%; FCF is positive at ₹70 Cr and dividend yield is 1.45%. Piotroski F-Score of 6/9 suggests no immediate accounting collapse. But the latest quarter is alarming: ₹1,846 Cr sales produced only ₹2 Cr net profit. ROE is 6.97% and ROCE 11.82%, below my hurdle. Debt/equity 1.24 and Altman Z-Score 1.94 mean the balance sheet is not a fortress. Valuation is the bigger issue. At ₹309.80, P/E is 46.94 and P/B 3.05. Graham Number is ₹120.08, giving a margin of safety of -157.65%—I would be paying a huge premium to intrinsic value. DCF intrinsic value is ₹0.08 and EV/EBITDA 362.18, which are not numbers I can reconcile with a cyclical chemical business. Profit growth of 58.9% sounds good, but with ₹2 Cr quarterly profit, I suspect a low base and volatile margins. FairStock Score 52/100 mixed confirms this is not clear-cut. I like the promoter stake, revenue growth and positive FCF, but low profitability, high leverage and absurd valuation keep me on the sidelines. This is a cyclical, not a steady compounder. For an Indian retail investor, patience and price discipline matter. I would wait for earnings to normalize and valuation to become sane.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer