This company is quietly dominating a billion dollar industry.

In this article we'll give an in-depth research on a company which is dominating the Indian and global industry and is currently listed on the Indian exchanges at a very undervalued rate.

Before we go there, let's talk a bit about copper. After a global correction due to the surprise rise of yen, commodities are finally rebounding and ripening with buy signals all over. This is the perfect timing to enter, as the major demand supply mismatch in the copper market still persists.

To learn more about the opportunity in the copper market and how to invest in the same, check out our latest video. Just click here.

Imagine the rubber in your car tires. It's tough, durable, and flexible, thanks in part to carbon black. This tiny, black particle provides the rubber with the strength and resilience it needs to handle the rigors of the road. Now think about the sleek finish on your car's dashboard.

This toughness, flexibility, and sleek finish are all thanks to a dark pigment known as carbon black.

WHAT IS CARBON BLACK?

Carbon black is a finely divided, amorphous form of carbon that is produced by the incomplete combustion of hydrocarbons. Carbon black's exceptional strength, light weight, and ability to absorb ultraviolet radiation make it an essential component in many industries, particularly the automotive industry.

The ongoing Russia-Ukraine conflict has resulted in a complete ban on carbon black imports by the EU from Russia, effective from July 1, 2024.?This has caused carbon black prices delivered to Germany to reach new highs, resulting in a 70% increase since the beginning of the year.?

To read the entire article, click here.

This geopolitical development presents a significant opportunity for Indian carbon black producers. With the EU being the largest importer of carbon black globally, Indian exports are expected to double in the next fiscal year.

Will Indian players be able to capitalize on this opportunity?

Prabhat Carbon Black Limited, or PCBL, ranks among the top seven carbon black producers worldwide. In India, PCBL holds a significant market share of 25%.

To capitalize on the growing demand for carbon black, PCBL is aggressively expanding its capacities through greenfield and brownfield expansions. This year alone, the company is adding up to Rs. 1,67,000 metric tons to its production capacity. By investing in new facilities and technologies, PCBL aims to further strengthen its position in the global market and meet the increasing needs of its customers.

As per the promoter, their capacity is expected to touch 880,000 MTPA by FY26 and 1,000,000 MTPA by FY27/28 from the present capacity of 770,000 MTPA.

You can read the article here.

?According to promotor Sanjiv Goenka, these expansions will result in a 5x increase in profit over the next five years from the current levels.

The stock has given a stellar 80% return in a matter of just 2 months, on the back of increasing investor interest in the company following the promotor's aggressive expansion plans.

The stock could give 4X returns in the long term when their expansion plans finally start contributing to the topline, hance its worth buying at every dip!

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Investment recommendations made in Midas Touch Wealth Wealth Management are for information purposes only and derived from source that are deemed to be reliable but their accuracy and completeness are not guaranteed. Midas Touch Wealth Management does not accept any liability for the use of this column for the buying or selling of securities. Readers of this report who buy or sell securities are solely responsible for their actions. The author, his company or his acquaintance may / may not have positions in the scrip’s featured herein.