India Carbon Limited Unlisted Shares

Investment Overview

India Carbon Limited is an unlisted company operating in the Materials sector (Industrial Materials). India Carbon Limited manufactures calcined petroleum coke (CPC) used by aluminium smelters and other metallurgical industries. Established in 1961, the company operates CPC manufacturing units in Assam and Meghalaya with proximity to raw material and logistics links. Product lines include CPC with c…

Strengths

• Robust Market Position: ICL is a trusted supplier of high-quality carbon products for key industries. Its long-standing relationships with top clients, such as NALCO, HINDALCO, and TISCO, reinforce its competitive edge.
• Strategic Partnership: The collaboration with Oxbow Calcining LLC strengthens ICL’s manufacturing capabilities and ensures that its products meet international quality standards, helping it stay competitive in a global marketplace.
• Resilient Monetary Outcomes: Despite the challenges in recent years, ICL has consistently demonstrated resilience. For example, in FY 2021-22, it recovered from a loss in the previous year to post a healthy gains. The company’s ability to manage costs and recover profitability highlights its operational efficiency.

Key Risks

• Fluctuating Raw Material Costs: The organization relies on global sources for raw petroleum coke (RPC), and fluctuations in the price of RPC significantly alter its cost structure. For instance, the rising cost of materials was a key concern in FY 2023, contributing to a sharp decrease in profitability.
• Operational Disruptions: The company’s execution has been affected by external factors such as the COVID-19 pandemic and disruptions in the global supply chain. For instance, in FY 2020-21, ICL witnessed a reduction in both revenue and production volumes.

Valuation View

The current unlisted market price is ₹886.05 per share with a market capitalisation of approximately ₹237 crore. The company is currently unlisted and investors should factor in illiquidity risk and longer holding horizons. Investors are advised to review the full financial data and consult an advisor before investing.