Buy PI Industries; Target Of Rs 2450: Sharekhan
Sharekhan is bullish on PI Industries has recommended buy rating on the stock with a target price of Rs 2450 in its research report dated October 29, 2020.
Nov 2, 2020 / 03:07 PM IST
Sharekhan's research repor on PI Industries
Q2FY21 results were strong as revenues and EBITDA margin beat estimates by 12.4% and 269 bps, respectively, rising to Rs1,158 crore (up 27.6% y-o-y) and 24.2% (up 298bps y-o-y). Revenue beat was driven by strong out-performance in domestic business (33% y-o-y growth) and exports (25% y-o-y increase). Gross margin expansion and higher operating leverage led by sharp improvement in EBITDA margin. Robust order book position of $1.5 billion in CSM business and decent growth in domestic market bodes well for sustained strong revenue growth for PI Industries. Management maintained its FY2021E growth guidance of 20%. Focus on acquisition in high RoCE business of Pharma and specialty chemicals would boost yield on QIP funds and improve margin and return profile of PI Industries in the coming years.
Hence, we maintain our Buy on PI Industries with revised PT of Rs. 2,450.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.