Accumulate PI Industries; target of Rs 2406: Dolat Capital Market

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26 Aug, 2025 12:21

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Dolat Capital Market's research report on PI Industries

Sales growth was ahead of our estimates, clocking 36.7% YoY growth to Rs 11.6bn (D.est: Rs 10.7bn). Gross margins expanded by 30 bps YoY to 46.9%. PI Industries’ strong operating leverage led to an EBITDA margin expansion of 180 bps YoY to 23.7%, with EBITDA growing by 47.7% YoY to Rs 2.7bn (D.est: Rs 2.5bn). PAT grew by 61.4% YoY to Rs 1.95 bn. Exports grew by 40% YoY to Rs 9.0bn owing with efficient capacity utilisation and strong demand of commercial molecules. The company commissioned 4 new molecules in the newly acquired ISAGRO’s facility. The company has built a robust pipeline of 5-6 new molecules which could likely be commercialised in FY22. The order book remained intact at USD 1.5bn. The CSM business is expected to grow at ~20% YoY. Domestic business grew by 26% YoY to Rs 2.6bn. PI Industries branded business grew by 17% YoY, while the remainder of ~Rs 189mn could be attributed to sales from ISAGRO’s domestic business. The company successfully launched a Rice herbicide – Londax Power (Bensulfuron Methyl + Pretilachlor). PI Industries’ AWKIRA (wheat herbicide) saw a strong ramp up with treatment of over 100k acres.

Outlook

We roll forward FY23E estimates and revise our target price, we are valuing PI Industries at 40x FY23E EPS with a target price of Rs 2,406/share. We have an Accumulate rating on the stock.

For all recommendations report, click here

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