Accumulate PI Industries; target of Rs 524: Dolat Capital

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26 Aug, 2025 12:21

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Dolat Capital`s research report on PI Industries“PI continues to build strong brands around products, use intensive farmer connect initiatives and strengthen extensive distribution capabilities. In 2013-14 PI benefitted from a good kharif crop and good traction in rabi on the back of healthy reservoir levels. The company introduced two new products during the year under review. MELSA, a wheat herbicide and PIMIX, a rice herbicide under comarketing agreements with a MNC innovator to provide integrated weed management solutions to wheat and rice cultivators. It has also signed three new agreements with their patent holders in the insecticide/ herbicide/ fungicide segments and would launch these in the domestic market to evaluate potential of the same.” “PII looks to provide early stage process research and manufacturing to maximize the potential of the innovator’s molecule. The company also strives to be lead suppliers in any of the process research contract it aspires, ensuring higher profitability. It maintained high utilisations level on strong order book driven by robustness in the volumes for existing as well as new molecule commercialisations. The company commercialized three new molecules for custom synthesis exports, which are expected to gain traction over the next few years. PI won the Agrow Award as the ‘Best Supplier’ to the global crop protection industry for its custom synthesis exports and was also nominated in the ‘Best Marketing Campaign’ category for its domestic agri input brand Nominee Gold.” “PI remains our preferred pick in the agri space with strong visibility and scalability to drive earnings next couple of years. We expect consolidated revenue to grow by 21% CAGR during FY14-16E on the back of higher contribution from the CSM business (From 52% in FY13 to 61% in FY16). We expect PAT to grow by 26% CAGR during FY14-FY16E, and cash flow generation to accelerate FY16 onwards. The stock is currently trading at 26.8x and 20.8x FY15 and FY16 EPS respectively. We recommend Accumulate with a target price of ` 524. (24x FY16 EPS),” says Dolat Capital research report.

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