The 27 reports from 10 analysts offering long term price targets
for PI Industries Ltd. have an average target of 2351.13. The consensus estimate
represents an upside of 5.02%
from the last price of 2238.65.
PI Industries manufactures plant protection & specialty plant nutrient products and solutions under its agri-inputs business. It is also one of India's leading custom synthesis (CSM) companies engaged in providing contract...
Revenue beat was driven by strong out-performance in domestic business (33% y-o-y growth) and exports (25% y-o-y increase). Gross margin expansion and higher operating leverage led by sharp improvement in EBITDA margin. Robust order book position of $1.5 billion in CSM business and decent growth in domestic market bodes well for sustained strong revenue growth for PI Industries. Management maintained its FY2021E growth guidance of 20%. Focus on acquisition in high RoCE business of Pharma and specialty chemicals would boost yield on QIP funds and improve margin and return profile of PI Industries in the...
Strong order backlog likely to sustain CSM growth momentum CSM business has order backlog of $ 1.5 billion, which represents TTM book to bill of more than 4x. The revenue from CSM remained at | 1413 crore during H1FY21 against | 1136 crore in H1FY20, registering growth of 24% YoY. The management expects the CSM business to report 20% YoY growth for FY21, leading to H2 growth of 16%. We believe the guidance is conservative and there is high probability of growth crossing over 20% YoY for this fiscal. Going ahead, since a few molecules are in advanced stages of...
We maintain Accumulate on PI Industries (PI) after raising our PE-based target price (TP) by 8.7% to Rs2168 post results, which was a beat vs. NB and street estimates. We have also raised our base case FY21E-23E EPS estimates based on the company's guidance for higher margins. Our new TP is based on higher target PE of 34.7x (5% increase from our old PE of 33.2x) on our pro-forma FY22E-23E average EPS estimate, assuming that potential earnings from the proposed investments in capacity building through M&A; will be funded using the Rs20bn raised through QIP last month. The management has a crack team working full time on potential targets in non-agro CSM,...
Background: Incorporated in 1947, PI (erstwhile Pesticides India) focuses on agri-input, custom synthesis and polymer compounding with strength of over 1,100 employees. The company currently operates three formulation and two manufacturing facilities as well as five multi-product plants across Gujarat and Jammu, and one R&D; unit in Rajasthan at Udaipur. PI is one of India's leading players in the agri-input industry, primarily dealing in agro-chemicals, specialty fertilizers, plant nutrients and seeds. The company has a strong product portfolio as a result of exclusive tie-ups with leading agro-chemical, pharmaceutical and fine chemical...
The company reported a consolidated sales growth of 27.6% YoY to Rs 11.5bn. A strong sales growth in the CSM business (up 25% YoY to Rs 7.98bn) coupled with improving contribution from ISAGRO (Rs 996mn from domestic business, Rs 109mn from exports) led to a beat on our sales estimate of Rs 10.5bn. EBITDA growth of 45.5% YoY to Rs 2.8bn came in from an improvement in gross margins of 170bps YoY with improved business mix and product mix coupled with easing input costs....
We initiate coverage on PI Industries with BUY and Target Price of Rs. 2155/share with a 10% upside as we value the stock at 33x P/E on its FY23E EPS given its unique business model aided by steady growing CSM and Domestic Formulation business and higher growth in adjacent segments
Dip in RoE offsets business and earnings growth outlook PI Industries offers visible growth in topline and earnings from three new units started over 4QFY20 and 1HFY21 as per the Indian agrochem CSM leader's FY20 annual report. The management has also discussed initiatives to beef up R&D; capabilities (i) to increase the pace of commercialization of molecules to at least 10 every year and (ii) new chemistry, including the latest in flourination process. New product launches and Isagro Asia acquisition are added growth catalysts that will likely support healthy growth in PI's CSM segment. This is based on innovators looking to Indian companies as alternative sources for...
Plodded along at first, forging ahead now ISAGRO's acquisition, a Rs 20.0bn QIP a prelude to inorganic growth, 22 patent applications, a USD 1.5bn CSM order book, introduction of an intermediate used in COVID-19 drug and commissioning of 2 new multiproduct plants, 2 new products in CSM and 3 new products in the domestic business have been new feathers in the cap for PI Industries during FY20. PI Industries' foray into pharmaceuticals has been a manifestation of their perseverance. PI Industries' FY20 annual report...
Background: Incorporated in 1947, PI (erstwhile Pesticides India) focuses on agri-input, custom synthesis and polymer compounding with strength of over 1,100 employees. The company currently operates three formulation and two manufacturing facilities as well as five multi-product plants across Gujarat and Jammu, and one R&D; unit in Rajasthan at Udaipur. PI is one of India's leading players in the agri-input industry, primarily dealing in agro-chemicals, specialty fertilizers, plant nutrients and seeds. The company has exclusive rights with several global corporations for distribution in India and is evaluating prospects to further expand their product portfolio. The company has a strong product portfolio as a result of exclusive tie-ups with leading agro-chemical, pharmaceutical and fine chemical...
PI Industries manufactures plant protection & specialty plant nutrient products and solutions under its agri-inputs business. It is also one of India's leading custom synthesis (CSM) companies engaged in providing contract...
We maintain Accumulate on PI industries (PI) after raising our PE-based target price (TP) by 18.2% to Rs1972 post results- in line vs. NB estimates, but above the street's. We have also tweaked our base case EPS forecast to build in the 8.97% equity dilution post the recent QIP. Our new TP is based on 33x PE on our proforma FY22E-23E average EPS estimate assuming potential earnings from proposed investments on capacity building through M&A; to be funded using the Rs20bn equity raised through a QIP last month. Management has a crack team working full time on potential targets in non-agro CSM, especially in pharma space, including overseas assets and expects to invest the QIP funds in full over the next 15-18 months (2H...
PI continued its outperformance in Q1'21 with topline/EBITDA/APAT growth of 41%/51%/44% driven by solid 76% growth in domestic business. The management continued to maintain positive commentary across CSM and domestic segments driven by stable demand outlook, continuous rise in new enquiries, entry in pharma value chain and ramp up of molecules & facilities commercialization. It plans to fully deploy QIP proceeds of Rs20bn in the next 5-6 quarters and expects to earn the existing 18-20% RoE over a period of...
CSM major with rich valuations offsetting future growth We initiate coverage on PI Industries Ltd with Accumulate rating and a target price (TP) of Rs1,668 (+8.36% upside form CMP) derived using a target PE of 31.6 on FY22E EPS. The stock has surged 31% in the last one year and looks richly valued at 29.41x PE on FY22E at CMP. We also have concerns regarding a likely lead time of 5-6 years in stabilizing the CSM business, as per NBIE pharma team. This underpins our Accumulate rating. PI does offer long term growth prospects as India's top custom synthesis and manufacturing (CSM) company in crop protection chemicals, which has an estimated global market size of US$57bn. PI has a track record in building CSM...
Background: Incorporated in 1947, PI (erstwhile Pesticides India) focuses on agri-input, custom synthesis and polymer compounding with strength of over 1,100 employees. The company currently operates three formulation and two manufacturing facilities as well as five multi-product plants across Gujarat and Jammu, and one R&D; unit in Rajasthan at Udaipur. PI is one of India's leading players in the agri-input industry, primarily dealing in agro-chemicals, specialty fertilisers, plant nutrients and seeds. The company has exclusive rights with several global corporations for distribution in India and is evaluating prospects to further expand their product portfolio. The company has a strong product portfolio as a result of exclusive tie-ups with leading agro-chemical, pharmaceutical and fine chemical...
