We remain positive on PI and Maintain BUY with a TP of Rs 900/sh (25x Jun'20EPS). PI Industries (PI) 1QFY19 Sales/EBITDA/PAT are not comparable on a YoY/QoQ basis due to change in the accounting standards to modified retrospective approach. The numbers hereon till 4QFY19 will not be comparable on a YoY basis. Though the gross margins were under pressure due to supply constraints and Chinas situation, PI has been trying to de-risk its procurement by moving away from the Chinese sources. We expect margins to normalize going forward. PI Industries is currently operating its plants at a ~95% capacity utilization, the company has thus planned a capex of Rs 2.5 bn for FY19-21E.