Motilal Oswal's research report on PI Industries
PI Industries (PI) reported strong 2QFY21 performance, driven by 25% YoY growth in Custom Synthesis and Manufacturing (CSM) and 33% YoY growth in Domestic business. Strong EBITDA growth of 46% YoY (on high base) was reported on the back of gross margin expansion (due to mix changes) and operating leverage. Factoring in the better-than-expected performance during the quarter, we have increased our PAT est. by 9%/4% for FY21/FY22E. We value the stock at 35x Sep'22E EPS to arrive at TP of INR2,611, implying 21% upside. Maintain Buy.
Outlook
We expect revenue/EBITDA/PAT CAGR of 25%/31%/39% over FY20-23E. We value the stock at 35x Sep'22E EPS to arrive at TP of INR2,611, implying 21% upside. Maintain Buy.
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