PCBL Shares Surge to 52-Week High After Aquapharm Acquisition

PCBL Shares Surge to 52-Week High After Aquapharm Acquisition

VoM News Desk | November 29, 2023 | 02:58 PM IST | Breaking News | Follow on Google News

PCBL Shares Surge to 52-Week High After Aquapharm Acquisition

PCBL Shares Surge to 52-Week High After Aquapharm Acquisition

Stock Price Hits New High Following Acquisition News
PCBL’s share price witnessed a significant surge, reaching a 52-week high in Wednesday’s trading session. This upward momentum came after the company announced its acquisition of Aquapharm Chemicals for ₹3,800 crore. Opening at ₹261.95 on BSE, the stock reached an intraday high of ₹269.85, underlining the positive investor sentiment following this strategic move.

Analysts Bullish on PCBL’s Prospects
Technical analysts remain optimistic about PCBL’s stock trajectory. Rajesh Bhosale from Angel One noted the strong volume-based movement, predicting the uptrend to continue with potential resistance at ₹280 and support around ₹255. Similarly, Ruchit Jain of 5paisa highlighted the positive broader trend for PCBL, supported by robust volumes, suggesting that investors holding long positions could see further gains. The 20-day exponential moving average (DEMA) now stands as a key support level at around ₹230.

Aquapharm Acquisition Marks Strategic Shift
The board of directors of PCBL Ltd has approved the purchase of a 100% stake in Aquapharm Chemicals, signaling a significant strategic shift. The deal, financed through a mix of internal accruals and external fundraising, marks PCBL’s entry into specialty segments like Water Treatment and Oil & Gas Chemicals. This acquisition is seen as the first step in creating a multi-platform global specialty chemical business portfolio. Domestic brokerage JM Financial views this acquisition as a critical juncture in PCBL’s evolution into a major specialty chemical player. They maintain a BUY rating on PCBL with a target price of ₹290, pending further details on the funding structure for the acquisition.

Positive Outlook for PCBL’s Future Growth
JM Financial’s analysis suggests that the acquisition is financially advantageous, with the valuation implying attractive EBITDA multiples compared to industry standards. They project the acquisition to be EPS and EBITDA accretive within a year post-acquisition, reinforcing the positive outlook for PCBL’s growth trajectory in the specialty chemicals sector.

VoM News Desk

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