Buy PI Industries: target of Rs 3300: Sharekhan

Sharekhan is bullish on PI Industries has recommended buy rating on the stock with a target price of Rs 3300 in its research report dated May 18, 2022.

Broker Research

May 20, 2022 / 21:44 IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

26 Aug, 2025 12:21

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Sharekhan's research report on PI Industries

Revenue/OPM of Rs. 1,395 crore/22%, up 16.5%/287 bps y-o-y met expectations but PAT of Rs. 204 crore (up 14% y-o-y) missed estimates on lower other income and a higher tax rate. CSM/domestic revenues grew by 11%/47% y-o-y to Rs. 1,114 crore/Rs. 281 crore, led by strong volume growth (9.5% y-o-y) and partial price hikes (of 7% y-o-y). Margin benefited from price hike, operating leverage and better product mix. Management guided for an 18-20% y-o-y revenue growth for FY23 and sees scope for margin improvement with ramp-up of new products recently commercialised, operating leverage and price hike for certain products. PI is actively evaluating options in pharma space for acquisition in CDMO/API side.

Outlook

We maintain a Buy on PI Industries with a revised PT of Rs. 3,300. A potential acquisition in the pharma space would improve long-term earnings growth outlook and makes us constructive on the stock. At CMP, the stock trades at 36.9x/29.6x FY23E/FY24E EPS.

For all recommendations report, click here