you are here: HomeNewsBusiness

Buy PI Industries; target of Rs 2740: Sharekhan

Sharekhan is bullish on PI Industries has recommended buy rating on the stock with a target price of Rs 2740 in its research report dated February 03, 2021.

February 09, 2021 / 10:49 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on PI Industries


Q3FY2021 results were strong with revenues/operating profit of Rs. 1,162 crore/Rs. 276 crore, up by 36.7%/47.7% y-o-y and 9%/14.8% above our estimate of Rs. 1,066 crore/Rs. 240 crore. Revenue beat was driven by a strong outperformance of the CSM business (40.1% y-o-y growth) and domestic business (26.2% y-o-y growth). Strong gross margins and efficient capacity utilisation drove up OPM by 176 bps y-o-y to 23.7%. The management expects strong growth momentum to sustain and guided for revenue growth of 20% each in FY2021 and FY2022. Outlook for CSM business is robust with the likely start of a new MPP in Q4FY21 and launch of 5-6 new molecules in FY22 while strong demand for branded products to drive growth for domestic business.


Outlook


Likely successful deployment of QIP money of Rs. 2,000 crore in high-margin, high-return pharma and specialty chemicals could act as a key re-rating catalyst. Hence, we maintain a Buy on PI Industries with an unchanged PT of Rs. 2,740.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Feb 9, 2021 10:49 pm

stay updated

Get Daily News on your Browser
Sections