PI Industries stock rises 2% as arm acquires UK-based Plant Health Care

Over the past three months, PI Industries' shares have surged more than 26 percent

Shares of PI Industries increased by 2 percent to Rs 4,405 apiece on August 21 following the company's acquisition of UK-based Plant Health Care Plc through its wholly-owned subsidiary, PI Industries Management Consultancies LLC.

As a result of this acquisition, Plant Health Care Plc has become a wholly-owned subsidiary of PI LLC and a step-down subsidiary of PI Industries. The goal of this acquisition is to enhance PI Industries' ability to offer comprehensive agricultural solutions that combine both chemical and biological products.

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The acquisition is expected to be finalised within three months from the announcement, resulting in complete ownership of the stake. The transaction will not be classified as a related party transaction, as the shares are being acquired by the subsidiary from an unrelated entity.

Over the past three months, PI Industries' shares have surged more than 26 percent, outperforming the Nifty 50's 9 percent rise during the same period. The stock previously reached a 52-week high of Rs 4,581 per share on August 9, 2024.

In the quarter ending June, the company reported an 8 percent growth in revenue, which was lower than expected due to reduced growth in custom synthesis manufacturing and a decline in domestic branded business. Domestic business also fell 8 percent year-over-year in Q1FY25 due to delayed sowing in key markets.

Elara Securities analysts have maintained an 'accumulate' rating with a target price of Rs 4,817 per share, anticipating continued growth due to a strong order book, aggressive capacity expansion, sustained R&D investment, and scaling up of recently acquired entities.

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