Downgrades

Quarterly Update Q1FY25

UPLL reported a weak quarter as revenue grew marginally (1% YoY), led by strong volume growth (up 16%) offset by lower agrochemical prices.

Sharda Cropchem Limited (SCL) reported solid growth in 1Q FY25 as revenues increased by 23.1% y-o-y to Rs 785.1 crore. A volume growth of 41% y-o-y was driven by strong performance at the agrochemical segment.

PI Industries has offered to acquire UK based listed company Plant Health Care Plc (PHC) for a sum of £32.8 million which is in the agriculture biological space. It has experience in protein/peptide technology.

Quarterly Update Q4FY24

PI Industries (PI)’s revenue grew 11% YoY in 4QFY24, led by a healthy growth
in the CSM business (up 9% YoY) and incremental revenue from the Pharma
business, which was absent in 4QFY23 (revenue mix of ~4% in 4QFY24).

UPLL reported a weak quarter as revenue declined 15% YoY, primarily due to
lower agrochemical prices (down 15% YoY) and volume decline of 2% YoY.
EBITDA margins contracted 450bp YoY largely due to higher rebates (~5%
price impact) and liquidation of high-cost inventory, partly offset by an
improved product mix and a lower cost of goods sold.

PI Industries strong track record, long-term relationships and ability to innovate new molecules gives us the confidence to value it 27x Sep FY26E resulting to near term TP of Rs 3750, implying an upside of 11% from the CMP.