In today’s briefing:
- 2025 High Conviction Idea: PCBL Limited: Transitioning to Specialty Chemical
- Belrise Industries Ltd Pre-IPO Tearsheet
- Delta Manufacturing Ltd- Forensic Analysis
2025 High Conviction Idea: PCBL Limited: Transitioning to Specialty Chemical
- Phillips Carbon Black (PHCB IN) PCBL is the largest producer of Carbon Black in the country and seventh largest player in the world.
- Transitioning to specialty carbon black, acquiring companies non-carbon linked companies and entering into JV for sunrise sectors EV battery chemical companies.
- Guiding for 2400Cr Capex for 1Mn capacity of Carbon black capacity, 600Cr capex for Aquafarm chemicals and 500Cr for battery chemicals in the upcoming years for growth.
Belrise Industries Ltd Pre-IPO Tearsheet
- Belrise Industries (9156339Z IN) is planning to raise about US$255m through its upcoming IPO in India. The lead bookrunners for the deal are Axis Capital, HSBC, Jefferies, SBI Capital
- Established in 1988, it specializes in safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
- As per Crisil report, Belrise held a market share of 24% in the two-wheeler metal components segment in India as of FY24.
Delta Manufacturing Ltd- Forensic Analysis
- Delta Manufacturing (DELTAMAG IN) manufactures hard-ferrite magnets, which it sells to OEMs and also manufactures garment trims in India i.e. woven labels, heat transfers, fabric printed labels, etc.
- DMG’s market cap is just about INR 1.2 bn but faces grim, loss making operations
- Other forensic setbacks include lack of FCF generation on the back of muted capex, cash flow misstatements, goodwill impairment, dependency on low cost promoter debt, etc.
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