with a market valuation of 48,978.40 crore, PI Industries Limited is a large cap firm that manufactures pesticides and agro chemicals. The company is the market leader in the development of granular formulations in India. The firm also manufactures the most common compounds, including propanophos, ethion, and phorate. Shares of PI Industries are currently trading on NSE 3,236.30 each, up 3.01% from the previous close. The stock had touched a 52-week high 3,534.90 on 14-Sep-21 and 52-week low of 2,333.55 on 27-Jan-22 indicating that the stock is trading 8.44% below the 52-week high and 38.68% above the 52-week low at the current price level. Brokerage firm Sharekhan has BUY rating on the stock, with a target price of Rs. 3,550 which will be the new high for this stock.
Brokerage firm Sharekhan said in a note that “PI Industries Limited (PI) reported strong Q1FY23 results, showing revenue, operating profit and PAT of Rs.1,543 crore/Rs.346 crore/Rs.262 crore, in CSM revenue. 29%/39%/40% growth led by better growth, outperform in OPM and a lower tax rate of 16.6% (versus the assumption of 21%). CSM revenue growth of 42% yoy exceeds our expectation of 24% yoy growth was strong and shows strong volume growth of 30% with advantage of favorable pricing and currency effect of 12% yoy.However, due to delay in monsoon (which affected crop acreage under Kharif) the domestic business declined by 4 per cent annually. Slow revenue growth of 3% to Rs 401 crore and largely reflecting better pricing and favorable product mix. OPM grew 155 bps year-on-year to 22.4% and was 53 bps higher than our estimate of 21.9%. The improvement in margins reflects the benefit of price increases to offset the increase in raw material costs.”
“PI’s strong balance sheet provides ample scope for organic and inorganic growth in the medium to long term and its earnings growth outlook (Revenue / EBITDA / PAT CAGR 21% / 27%) / 30% on FY 2022-FY2024E Hopefully) is strongly supported. CSM has an order book of $1.4 billion and has commercialized 9 new products in the past year. Hence, we maintain Buy Rating on PI Industries with a revised PT of Rs. 3,550. In CMP, the stock trades at 42.2x its FY2023E EPS and 33.7x its FY2024E EPS,” said research analysts at broking firm Sharekhan.
“Demand in both domestic (strong rabi season outlook) and export markets (order book of $1.4 billion) remains encouraging and has guided the company to 18-20% revenue growth and margin improvement for FY13. The introduction of additional capacity and contribution from newly launched brands will drive growth. In addition, a fund of Rs. The Rs 2,000 crore raised through QIP is expected to be deployed for acquisition of pharmaceutical assets and driving inorganic growth in the medium to long term, besides diversifying its business and enhancing technological capabilities,” the brokerage said. he said.
The stock has given a multibagger return of 366.74% in the last 5 years and the stock has given a multibagger return of 199.06% in the last 3 years. However, on YTD basis, the stock has gained 5.87% so far in 2022 and at the current price level the stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day exponential moving averages. Is. EMA).
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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