PI Industries Ltd. share price target

*over or under performance to benchmark index PI Industries manufactures plant protection and specialty plant nutrient products and solutions under its agri-inputs business. It is also a leading custom synthesis and manufacturing (CSM) company in India, providing contract research and contract...

Kumiai Chemical Industry (Kumiai) has revised up its H1FY25 revenue guidance by ~9% to JPY96bn from JPY88bn, citing that net sales are expected to exceed the forecast due to advanced shipment to overseas markets in its Agchem business.

Quarterly Update Q4FY25

PI Industries’ revenue missed our estimates due to weak performance in exports. EBITDA missed due to miss in revenue and higher-than-expected other expenses. Adj. PAT missed due to higher-than-expected depreciation expenses.

We maintain our BUY rating on the stock.

Quarterly Update Q2FY25

We upgrade our rating on the stock from HOLD to BUY considering attractive valuations post the recent correction in stock price while long-term growth prospects remain intact.

PI Industries revenue missed our estimates significantly due to decline in domestic segment. EBITDA missed our estimates due to increase in employee expenses and other expenses, however, Adj. PAT was largely in-line.

Based on our estimates, PI Industries is valued at 30x FY26E, with a target price of Rs 4,980 per share. This implies an upside potential of 6% from the CMP, with a HOLD recommendation.

PIIND reported an 8.3% Y-o-Y (+18.8% Q-o-Q) rise in revenue to INR 20,689 Mn (vs. our estimate of INR 21,692 Mn, a miss of 4.6%) Net income increased 17.2% Y-o-Y (+21.5% Q-o-Q) to INR 4,488 Mn. Nevertheless, it was a beat of 10.2% from our estimates.

Quarterly Update Q1FY25

We maintain our BUY rating on the stock.

PI Industries’ (PI) revenue for the quarter reached Rs. 2,069 crore, reflecting an 8% y-o-y increase
and a 19% q-o-q rise, 2% above expectations.

PIIIND has lowered its revenue growth guidance to 15% for FY25E, from 18%-20% levels to factor in the weak global demand sentiments for H1FY25 and the ongoing monsoons in India for FY25. Monsoons are predicted to be around normal levels in India in FY25E, though (as per Independent forecast agencies, such as SkyMet).

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.

we maintain our BUY rating on the stock.

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).