PI Industries jumps 3% on solid Q4 show, Jefferies sees 16% upside

Shares of PI Industries traded volatile over the past year, gaining around 10 percent in trade.

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PI Industries gained over three percent in early trade on May 22, after the agro-chemicals maker posted a 32 percent on-year rise in net profit.

For the quarter ended March, PI Industries' net profit gained 31.7 percent on-year to Rs 369.5 crore, up from Rs 280.6 crore in the same quarter during the year-ago period.

The chemical player's revenue rose 11.2 percent to Rs 1,741 crore YoY as against Rs 1,565.6 crore in the corresponding period of the preceding financial year.

At 9.20 am, PI Industries was quoting Rs 3,660.05 on the NSE, higher by two percent.

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International brokerage Jefferies reiterated its buy call on the firm, with a price target of Rs 4,165 per share. This indicates an upside of around 16 percent from the previous session's closing price.

The brokerage said that the revenue missed its estimates by six percent, as both the agrochemical and pharma segments faced weakness. The EBITDA, however, was in-line with estimates as a result of the firm's strong margins, despite the drag from pharma.

Jefferies said that the key focus areas for the firm are the growth and margins in PI Industries' Custom Synthesis and Manufacturing (CSM) and domestic businesses, along with the ramp-up of the pharma arm in FY25.

PI Industries announced a final dividend of Rs 9 per share, with the face value of Re 1. The dividend will be paid out on or before September 20, 2024.

Shares of PI Industries traded volatile over the past year, gaining around 10 percent in trade. In comparison, the Nifty 50 rose around 23 percent during the same time period.

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