PCBL hits 52-week high on specialty chemicals capacity expansion

Shares of PCBL jumped 7 percent and hit a 52-week high of Rs 174.50 in early trade on July 11 after the company commissioned the first phase of its planned 40,000 MTPA specialty chemicals expansion at its Mudra plant in Gujarat.

The first phase of the brownfield expansion will see the addition of 20,000 MTPA of specialty chemicals capacity in the aforementioned plant.

“This enhanced capacity will enable PCBL to meet the growing demands of its existing customers, enhance customer serviceability and also explore new opportunities,” the firm stated in an exchange filing.

At 09.23 am, shares of PCBL were trading 6.23 percent higher at Rs 173.20 on the National Stock Exchange.

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The prospects for domestic companies involved in the specialty chemicals space has been consistently improving as they have managed to gain some market share from their European counterparts in the recent times. On top of that, the growing China+1 sentiment has also been aiding demand for domestic players.

At such a time, most domestic specialty chemical players have rolled out plans to expand their capacities to present themselves as an alternative to China. Most analysts expect a demand revival in the industry from the second half of the current fiscal, on the back of a stabilisation in input prices and reduced pricing pressure from China. On that account, the capacity expansion planned by PCBL will further improve its financials.

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