KR Choksey's research report on PI Industries
PI Industries’ revenue missed our estimates due to weak performance in exports. EBITDA missed due to miss in revenue and higher-thanexpected other expenses. Adj. PAT missed due to higher-than-expected depreciation expenses. We decrease our FY26E/FY27E EPS estimates by 8.8% and 8.6% to INR 128.3 and INR 148.7 respectively, due to continued industry-wide destocking, slow recovery in key markets like Brazil, and Europe. Looking ahead, PI Industries remains cautious, acknowledging the uncertain global outlook, ongoing tariff concerns, and inventory-related disruptions in the near term.
Outlook
We roll over our valuation multiple to FY27E and assign a PE multiple of 26.0x to arrive at a target price of INR 3,865 (previously: INR 4,922) reflecting gradual recovery in export demand from H2CY25E, and persistent pricing pressure in domestic business. Therefore, we downgrade to “ACCUMULATE” from “BUY” rating.
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