Buy PI Industries; target of Rs 4922: KR Choksey

KR Choksey's research report on PI Industries

PI Industries revenue missed our estimates significantly due to decline in domestic segment. EBITDA missed our estimates due to increase in employee expenses and other expenses, however, Adj. PAT was largely in-line. We decrease our FY26E EPS estimates to INR 140.6 (previously: INR 148.0) due to reduced FY25E guidance, global demand fluctuations, and normalization of inventory level will take two to three quarters.

Outlook

We maintain our PE multiple at 35.0x as we believe new product launches, including biological solutions are expected to drive domestic revenue, and growth in CSM exports will be supported by strong demand for newly commercialized products. Therefore, we arrive at a target price of INR 4,922 (previously: INR 5,184) and maintain our “BUY” rating.