Shares of PI Industries make strong comeback after hitting 52-week low 2,333.55 each on the NSE in May 2022. PI Industries share price is around today A level of 2530 per share means the stock has gained nearly 9 percent since hitting its 52-week low. Prabhudas Lilladher is expecting further rise in the counter as its research report claims that the counter may go up 3340 per level in the long term. Since the stock is trading around the 2530 level, the brokerage is expecting a rally of around 30 per cent over the counter in the long term horizon.
Highlighting the fundamentals in favor of the Bull case Shares of PI Industries, Prabhudal Lilladher The report said, “We held talks with the senior management of PI Industries (PI) to take an update on the business and forward outlook. Key highlights: (a) 18-20% for FY23 in both the company The exports and domestic segment (supported by last year’s lower base); (b) remunerative commodity prices bode well for the domestic market; (c) impact of delayed monsoon on placements However, there remains hope of revival of monsoon; (d) to launch 5-6 products in the domestic market in FY 2013; (e) 80:20 mix for CSM business agriculture and non-agriculture (f) Pharma acquisition is still in evaluation stages; likely to be done in next two quarters.”
Being bullish on the counter, the research report further stated, “PI relied on the core business and its growth guidance, which is likely to improve from current levels, primarily driven by strong inquiries in the CSM business and in the domestic segment.” Due to new launches.. We believe the stock has corrected ~35% from its recent highs, thus providing a good entry point with strong earnings visibility into our core business. Maintaining FY23/FY24 EPS.”
On his suggestion to stock market investors with regard to shares of PI Industries, Prabhudas Lilladher’s report states, “We expect PI to generate revenue/PAT CAGR of 18%/23% in FY22-24E (FY 22-24E). 11-22, 20% / 26%). Maintain ‘BUY’ with unchanged TP of INR 3,340 based on 40xFY24 EPS.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.