PI Industries Ltd. share price target

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...

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...

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...

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....

PI Industries (PI) reported a good Q2 beat. Revenue/EBITDA grew 28%/46% YoY, ahead of our estimates by 7%/13%.

We recommend a BUY on PI INDUSTRIES with a Target Price of Rs 2280, an upside of ~7% from CMP of Rs. 2130 and Stop Loss Rs 1980

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

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...