Buy PI Industries; target of Rs 988: Motilal Oswal

Motilal Oswal is bullish on PI Industries has recommended buy rating on the stock with a target price of Rs 988 in its research report dated February 06, 2018.

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March 08, 2018 / 18:18 IST

26 Aug, 2025 12:21

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Motilal Oswal's research report on PI Industries

Revenue grew 10.2 % YoY to INR5, 377 m (est. of INR6, 004m) in 3 QFY18. EBITDA margin shrunk 170bp YoY to 19.5% (est .of 22.0 %), led by a n increase of 212 bp YoY in other expenses and 95 bp in raw material cost. Agri revenue was impacted by unusual rains in states like Chhattisgarh, Telengana and Karnataka, and also by GST -related hiccups. CSM business was hurt by supply disruption from China and higher raw material prices. EBITDA rose 1.4% YoY to INR1, 048m (est. of INR1,322 m) , primarily due to higher raw material cost and an adverse product mix in the agri segment. Consequently, adj. PAT fell 14.2% YoY to INR806m (est. of INR970 m) from INR 939m in 3 QFY17.

Outlook

We largely maintain our estimates and value the stock at 24x FY20E EPS, arriving at a PT of INR988, implyinga 20% upside. Maintain Buy.For all recommendations report, click here

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