Emkay's research report on PI Ind
PI Industries Q4FY16 revenue growth at 8% YoY to Rs 5.8bn was marginally lower than our estimates of Rs 6.0bn on the back of tepid growth of 6% YoY in CSM segment while domestic business surprised positively with a 17% YoY growth. For the full year FY16, CSM segment posted moderate growth of 10% YoY while the domestic business growth stood at 6% YoY.
Management has guided for 18-20% growth with 100-150bps margin expansion for FY17 on the back of improving outlook in the domestic as well as exports market. While growth in domestic business will be led by its strong product portfolio, growth in CSM will largely be driven by robust order book and increasing contribution from newly commissioned facilities. We roll forward to FY18 and expect revenue/EBITDA CAGR of 19%/17% over FY16-18E. We revise our target prices Rs 754 based on 25x FY18E EPS of Rs 30. Maintain Accumulate.
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