PI Industries Ltd. share price target

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...

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...

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...

PI Industries (PI) reported a strong beat in Q1FY21 with sharp QoQ EBITDA recovery.

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...

PI reported subdued results because COVID largely led to higher than anticipated revenue decline (Revenue impact- Rs 1 bn, EBITDA- Rs 220 mn) coupled with lower other income (down 69% YoY). COVID related revenue loss is likely to recoup in Q1FY21. Both domestic and CSM businesses continue to do well with robust demand for key existing molecules (Bispyribac Sodium, Osheen, etc), new launches, entry into pharma value chain, new client additions and ramp up of molecules & facilities...

8 June 2020 Operating performance of PI Industries (PI) was subdued due to the COVID- 19 pandemic, resulting in deferment of revenue. This in turn, led to decline in domestic agrochemicals segment with some growth moderation in Custom Synthesis and Manufacturing (CSM) business. PI has successfully marked its entry into the pharma value chain, which it has worked on since the last 4-5 years. The company has tied up with a few large pharma companies in Japan and India (supplies should start from 1QFY21), which we believe is a commendable feat. We maintain our estimates for FY21/FY22E and value the stock at 30x FY22E EPS to arrive at a TP of INR1,835, implying 15% upside. 4QFY20 revenue of INR8.6b (v/s est. Isagros performance, which was absent in the base quarter). EBITDA stood at INR1.86b (v/s est. INR2.08b), up 7% YoY; EBITDA margins expanded 20bp YoY to 21.8% (v/s est.

PI Industries Limited (PI Industries) delivered revenue growth of 6.3% y-o-y to Rs. 855 crore, led by 12% y-o-y growth in exports, as revenue in the domestic market was lower by 11.8% y-o-y. Lockdown due to COVID-19 in March impacted revenue by Rs. 100 crore in Q4FY2020, as sales were deferred to Q1FY2021. Moreover, exports growth could have been higher as one of the multi-product facility was unavailable. Ease in input cost pressures led to gross margin expansion of 106 bps to 46.8%, while EBITDA margin improved marginally by 23 bps to 21.8% (53 bps higher than our expectation of 21.3%) as lower other expense was partly offset by increased...