Buy PI Industries; target of Rs 5049: Sharekhan

Sharekhan's research report on PI Industries

PI Industries’ (PI) revenue for the quarter reached Rs. 2,069 crore, reflecting an 8% y-o-y increase and a 19% q-o-q rise, 2% above expectations. EBITDA stood at Rs. 583 crore, marking a 25% y-o-y increase and a 32% q-o-q rise, 6% above expectations. Management is highly confident of achieving the FY2025 guidance of double-digit growth over the topline (including pharma) and considers 25-26% to be a sustainable long-term operating profit margin.

Outlook

We maintain BUY with a revised PT of Rs. 5,049. Growth is expected to accelerate with the expansion of the pharma segment. At the CMP, the stock is trading at 33x its FY2026E EPS and 27x its FY2027E EPS.