Item: PI Industries Ltd.
Rating: 5
Author: Motilal Oswal

CSM strength intact

Buy: PI Industries Ltd.

Target

Motilal Oswal

13 February 2020 PI maintained its strong performance, driven by both CSM/domestic agri businesses. Notably, CSM revenue grew by 19% YoY off a very high base (+40% YoY in 3QFY19). EBITDA margin improved led by operating leverage. Revenue/EBITDA was in line, but PAT was a miss mainly due to higher-than- expected tax rate. We broadly maintain our estimates and reiterate operating leverage. PAT grew at a lower rate of 12% YoY to interest cost and tax rate (due to change in SEZ share to overall business), although higher other income provided some support. For 9MFY20, revenue/EBITDA/PAT grew 23%/32%/21% YoY. CSM revenue grew 19% YoY to INR6.4b off a high base (+40% YoY in 3QFY19) on the back of continued ramp-up in exports. CSM order book was flat QoQ at USD1.4b. Domestic business revenue grew 24% YoY to INR2.1b, mainly led by growth in volumes due to higher acreages across key crops during Rabi.

Comment

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Hitesh Ramji Javeri	50
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Sangeetha S	50
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Hdfc Trustee Company Limited	112
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President Of India	56

Name	Returns(%)
Name	Week	Month	Year
Quant Active Fund - Reg - G	0.77%	0.61%	17.15%
UTI - Equity Fund. - Reg - G	0.50%	5.37%	11.64%
HDFC Multi-Asset Fund - Reg - G	-1.68%	1.13%	9.35%
IDFC Focused Equity Fund - Reg - G	-1.07%	1.25%	7.32%
Canara Robeco Bluechip Equity Fund - Reg - G	-0.91%	3.93%	6.92%

Name	Returns(%)
Name	Week	Month	Year
DHFL Pramerica Midcap Opportunities Fund - Reg - G	-1.92%	-0.27%	28.13%
DSP Small Cap Fund - Reg - G	0.18%	1.84%	17.90%
Union Small Cap Fund - Reg - G	-1.31%	-0.69%	15.87%
Kotak Small Cap Fund - Reg - G	0.14%	1.42%	13.96%
UTI - Mid Cap Fund - Reg - G	0.00%	0.38%	12.75%

Name	Returns(%)
Name	Week	Month	Year
Parag Parikh Long Term Equity Fund - Reg - G	-2.80%	-1.69%	17.22%
DHFL Pramerica Diversified Equity Fund - Reg - G	-1.26%	2.14%	14.41%
Quant Mid Cap Fund - Reg - G	-0.02%	-0.41%	14.06%
Taurus Ethical Fund - Reg - G	-0.75%	1.64%	12.87%
Baroda Mid-cap Fund - Reg - G	-0.51%	0.72%	12.06%

PI Industries Ltd.

CSM strength intact

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