Credit rating agency, CRISIL Research has revised CRISIL IER fundamental grade of Phillips Carbon Black to 3/5 from 4/5. The grade indicates that the company’s fundamentals are ‘good’ relative to other listed equity securities in India. The rating agency has also revised valuation grade of 5/5 to the company.
The revision in the company’s fundamental grade reflects the changing dynamics of the global carbon black (CB) industry, affected by large capacity additions in China and Chinese players’ competitive advantage due to lower raw material prices.
Phillips Carbon Black is the leading producer of Carbon Black (CB) in the country and seventh largest in the world with installed capacity of 410,000 mtpa. Its plants located at Durgapur (West Bengal), Mundra (Gujarat), Baroda (Gujarat) and Kochi (Kerala) facilitates in optimizing transportation cost. Furthermore, PCBL also has captive power plants (CPP) at all its locations (aggregate capacity of 76 MW).
