Sep 2, 2017

Himadri Speciality Chemical Vs Phillips Carbon Black - Both are in Carbon Black

Himadri Speciality Chemical vs Phillips Carbon both has a good run. Both are in Carbon Black which is mostly used in Tyre. Carbon Black is 23% of trye raw material. Carbon Black depend on Crude oil for raw material.

Phillips carbon is looking better. CMP: Rs 703. Not a buy now, especially Himadri Speciality. Running train.

Govt has imposed anti-dumping on Carbon Black for 5 years till 2020.

Phillips Carbon Black has started focusing on specialty black which is being increasingly used in high-end applications like plastics, inks, paints and coatings, toners and electronic components and offers a much higher realization.
PCB is thinking of expansion as it is running at almost full capacity for Carbon Black. Till than if margin don't improve then profit don't improve. But current result is also very good. Market for the product is also good.

Himadri's growth is higher but valuation is also high.
Phillips Carbon can be considered currently, if one need to buy.