Phillips Carbon Black (PCBL) hit upper circuit of 5 per cent after the company executed stock split in the ratio of 1:5.This means one share of PCBL of face value of Rs 10 has been sub-divided into five of face value of Rs 2 per share.The record date for the same is April 20 while the ex-date for the same is April 19.Shortly after opening at Rs 225.20 on Thursday, the stock jumped 5 per cent to Rs 236.45.
It settled at Rs 1,126.05 on the BSE.ICICIdirect.com is bullish on Phillips Carbon Black with a target price of Rs 340.
According to the brokerage house, PCBL has promptly de-risked its business model from fluctuations of commodity price, including crude, with the company incorporating full variable cost pass through in contracts with all its key customers.
This protects the firm from fluctuating profitability as seen in the past and provides a moat to its business profile.
Therefore, profitability of PCBL is not determined by crude price volatility.