PI Industries has target of Rs 750: SP Tulsian

PI Industries has target of Rs 750, says SP Tulsian of sptulian.com.

Tulsian told CNBC-TV18, "PI Industries is into agrochemical, specialty chemical, agri inputs like seeds and all that. The performance of this company has been quite good for FY11. The company has recently gone for stock split."
He further added, "They have three plants, one in Udaipur, one in Ankleshwar, and one in Jammu. Recently if you see the Q1 results though the Q1 results of FY12 includes the sale of some Rs 30 crore odd gain, which they have done of the polymer compounding business because that was unrelated to their core business, so they knocked it off and made a gain of Rs 30 crore on that. But even if I take the net of tax liability, the company has posted a PAT of close to about Rs 48 crore for first quarter on a lower equity base of Rs 12.5 crore."
"If you see traditionally Q2, Q3 and Q4 are always the best quarter for the company. Infact Q1 is the lean - least among all the four quarters for this company and this company has been steadily growing up their R&D and distribution network, probably these two are the strength of this company and that is why they have entered into an R&D. They have set up R&D center in joint collaboration with Sony Corporation, which has been recently setup and they will be ramping it up over the next couple of years and they have recently entered into a distribution agreement with an MNC also for distribution of agro chemicals."
"So taking all these into consideration I am expecting that company should be able to post an EPS of close to Rs 42-44 for FY12 on a recently reduced face value of Rs 5 and I find tremendous value in this stock because talking the positive view on the agri inputs company and specifically on this stock if somebody can keep a view of about one year, they should be able to see a price target of Rs 750."