PI Industries Ltd. share price target

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...

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...

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's results were marginally lower than our estimates due to higher than Change in Estimates | Target | Reco anticipated tax rate. Both domestic and CSM businesses continue to grow a rapid pace. It has also completed the acquisition of Isagro which will be...

13 February 2020 PI maintained its strong performance, driven by both CSM/domestic agri businesses. Notably, CSM revenue grew by 19% YoY off a very high base (+40% YoY in 3QFY19). EBITDA margin improved led by operating leverage. Revenue/EBITDA was in line, but PAT was a miss mainly due to higher-than- expected tax rate. We broadly maintain our estimates and reiterate operating leverage. PAT grew at a lower rate of 12% YoY to interest cost and tax rate (due to change in SEZ share to overall business), although higher other income provided some support. For 9MFY20, revenue/EBITDA/PAT grew 23%/32%/21% YoY. CSM revenue grew 19% YoY to INR6.4b off a high base (+40% YoY in 3QFY19) on the back of continued ramp-up in exports. CSM order book was flat QoQ at USD1.4b. Domestic business revenue grew 24% YoY to INR2.1b, mainly led by growth in volumes due to higher acreages across key crops during Rabi.

Sector: Agrichemical /Small-Cap | Earnings Update 2QFY20 Background: PI Industries' is one of the leading players in the Crop protection industry. Company largely operates under two main segments a) agriculture inputs, b) custom synthesis and contract manufacturing. Company has a niche portfolio of 45 products, which includes 5 in-licensed products and 7 co-marketing products in tie up with MNCs such as Bayer, BASF & Kumiai chemicals. Company currently operates three manufacturing sites in Gujarat, having three formulation units and 8 multiproduct plants for manufacturing, active ingredients and intermediates. PI has a strong distribution network of 10,000 dealers / distributors; 40,000 retailers and 30 stock points....

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 Industries reported better than expected results driven by outperformance Change in Estimates | Target | Reco from the CSM segment (up 52% YoY; PLe- 19%). Management commentary on future outlook indicates robust business momentum and clear growth...

PI Industries continued to deliver strong performance with revenue, EBITDA and PAT growing by 26%, 43% and 30% y-o-y, respectively, in Q2FY2020 (ahead of our estimates by 8%, 15% and 12% respectively). PI Industries reported revenue of Rs. 907 crore (ahead of our expectation of Rs. 839 crore), led by a 52% y-o-y increase in exports (CSM) business as domestic business was lower by 12% y-o-y. Despite input cost pressures (up by 51 bps to 57.6% of sales), EBITDA margin expanded by 257 bps at 21.2% (ahead of our expectation of 20%) led by economies of scale and cost efficiencies....

PI is all set to ride the multi-year growth in the CSM segment as its enhanced Change in Estimates | Target | Reco R&D; capabilities, supply scarcity related issues in China and increased focus on outsourcing by the innovators are bearing fruit in the form of big product...

13 September 2019 Agrochemicals PI Industries has announced the acquisition of Isagro Asia from Isagro S.p.A for INR3.5b. Isagro Asia operates in India and is engaged in contract manufacturing, local distribution and exports of agrochemicals. PI will acquire 100% shareholding held by Isagro S.p.A in Isagro Asia, either directly or through a subsidiary. The deal has taken place at a valuation of ~15x P/E FY19. PI will fund the acquisition partly through internal accruals and partly through debt. Company remains confident of integrating Isagro Asias operations with itself in FY20. Isagro Asia generated revenue of ~INR3b in FY19; of this, 65% was contributed by the domestic formulation business and balance came in from the contract manufacturing business. In the domestic formulation business, Isagro sells in-licensing products, generics products and proprietary patent products. Three key in-licensing products include (i) insecticide mitigate, (ii) fungicide domark, and (iii) biostimulants siapton.

PI Industries manufactures plant protection and speciality plant nutrient products and solutions under its agri-inputs business. It is also one of India's leading custom synthesis and manufacturing companies providing contract...