PI Industries Ltd., incorporated in the year 1946, is a Large Cap company (having a market cap of Rs 39900.35 Crore) operating in Pesticides/Agro Chemicals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1241.30 Crore, up 3.36 % from last quarter Total Income of Rs 1201.00 Crore and up 44.00 % from last year same quarter Total Income of Rs 862.00 Crore. Company reported net profit after tax of Rs 179.90 Crore in latest quarter.
Promoter/FII Holdings
Promoters held 46.7 per cent stake in the company as of March 31, 2021, while FIIs held 19.4 per cent, DIIs 21.3 per cent and public and others 12.6 per cent.
Here’s what top brokerages have to say about the stock.
Motilal Oswal | Rating: Buy | Target: Rs 2,945
The company has levers in place to sustain the near term growth momentum, led by: a) ramp-up in operations of two multi-purpose plants (MPPs) that commenced in FY21, and one new MPP is likely to commence operations by 2QFY22, b) revenue from the Isagro acquisition, c) sustained growth momentum in the CSM business on account of strong (USD1.5b) order book, increasing pace of commercialization of new molecules, and ramping up of sales of existing molecules, and d) product launches in the domestic market (five new launches in FY22), providing earnings visibility. The stock traded at an average of 31x over the last three years on a one-year forward basis. The brokerage ascribes 35x P/E after considering the strong growth outlook for existing businesses and its venture into the Pharma segment, which presents a huge opportunity for the company to play on.
Emkay Global| Rating: Hold | Target: Rs 2,500
The brokerage downgrades PI to Hold due to rich valuations. It values PI’s core business at 30x Jun’23E EPS (vs. 33x earlier including cash) and ascribe a separate 1.5x multiple to QIP related cash proceeds of Rs19.75bn, and arrive at unchanged TP of Rs 2,500. Export order book remained steady at USD1.5bn qoq, implying new life-time high quarterly order wins of ~USD136mn (~USD82mn/USD108mn/USD120mn order wins in Q1/Q2/Q3FY21).
Lack of announcement of any utilization of QIP proceeds was a disappointment. Management guided that they are at an advance stage of negotiation for a sizable pharma asset and they expect to finalize the transaction by the end of Q1FY22 or Q2FY22.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
