Motilal Oswal is bullish on PI Industries has recommended buy rating on the stock with a target price of Rs 1266 in its research report dated May 20, 2019.
Motilal Oswal's research report on PI Industries
4QFY19 revenue increased 29% YoY to INR8b (our est. INR7.5b) with EBITDA up 28% YoY to INR1.7b (in-line). EBITDA margins contracted 10bp YoY to 21.4% (our est. 22.8%), while Adj. PAT increased 18% YoY to INR1.2b (in-line). For FY19, revenue/EBITDA/adj. PAT grew 25%/17%/12% YoY to INR28.4b/INR5.7b/INR4.1b.
We value the stock at 27x FY21E EPS (in line with its 1-year forward multiple over the last three years) and expect revenue/PAT CAGR of 20%/26% over FY19-21E. Our TP of INR1,266 implies 15% upside. Maintain Buy.
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