Buy PI Industries; target of Rs 950: HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on PI Industries

PI Industries’ (PI) 4Q revenue growth was muted at Rs 6.1bn (4% YoY), owing to flat domestic sales. A better product mix (CSM share is 71% in Q4 vs. 62% in FY17) and operating leverage led to EBITDA margin of 25.4% (+682 bps).

Outlook

We expect the scenario to improve in FY18/19. Commercialisation of two to three new molecules every year in the CSM segment, and a strong order book (4.7x FY17 segmental revenues) keep long-term growth prospects positive. Strong return ratios, healthy B/S and robust growth command premium for PI. We remain positive on PI. Maintain BUY with a TP of Rs 950/sh (25x FY19E EPS).

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