Brokerages retained their optimism on agrochemicals player PI Industries following its earnings show for the first quarter of FY25, as the new launches and patents drove their bullishness.
The agrochemicals maker posted a net profit of Rs 448.8 crore, higher by 17.2 percent as against Rs 383 crore in the same quarter last year, according to a regulatory filing.
PI Industries' revenue from operations clocked in at Rs 2,068.9 crore, up 8.3 percent compared to Rs 1,910 crore in the first quarter of the preceding fiscal.
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During the quarter, PI launched two new brands in insecticides and mentioned that it plans to launch four more innovative products—across insecticides, fungicides, and biologicals soon—and has more than 20 products under registration and development.
Management has guided overall revenue growth of 15 percent-plus for FY25 while aiming to maintain margins in the 25–26 percent range.
The expected improvement in the domestic market and the anticipated higher contribution from new products are likely to support this growth target, said Nuvama Institutional Equities.
The brokerage maintained its 'buy' rating, lifting its target price to Rs 5,442 per share, up from Rs 4,360 per share.
International brokerage Citi bumped up its target price on PI Industries to Rs 5,125 per share, maintaining its buy call. The brokerage was bullish on management commentary, which was confident that the firm would deliver 15 percent revenue growth in FY25. The domestic agrochem arm revenue was impacted as a result of delayed sowing and an erratic monsoon.
The positive developments on PI Industries' Pyroxasulfone patent should allay investor concerns, said Jefferies. Additionally, the robust growth outlook of the new product(Fluindapyr) should aid growth. The brokerage reiterated its buy rating, with a target price of Rs 5,100, up from Rs 4,750 apiece, saying PI Industries remains its top pick in the chemical space.
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