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Last Updated : Aug 10, 2018 04:37 PM IST | Source: Moneycontrol.com

Buy PI Industries; target of Rs 900: HDFC Securities

HDFC Securities is bullish on PI Industries has recommended buy rating on the stock with a target price of Rs 900 in its research report dated 07 Aug 2018.

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HDFC Securities' research report on PI Industries

PI Industries’ (PI) 1QFY19 Sales/EBITDA/PAT are not comparable on a YoY/QoQ basis due to change in the accounting standards to modified retrospective approach. The numbers hereon till 4QFY19 will not be comparable on a YoY basis. Though the gross margins were under pressure due to supply constraints and China’s situation, PI has been trying to de-risk its procurement by moving away from the Chinese sources.

Outlook

Commercialization  of  3-4  molecules  every year is likely to propel  the  domestic growth. PI also has a strong capex plan of ~Rs 2.5 bn (asset  turns  of 1.5x) and is expected to add 2 multipurpose plants by end of  FY19.  We remain positive on PI and Maintain BUY with a TP of Rs 900/sh (25x Jun’20EPS).

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.

First Published on Aug 10, 2018 04:37 pm
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