Buy PI Industries; target of Rs 800:Sharekhan

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Sharekhan's reserach report on PI Industries

PI Industries (PI), a leading agro-chemical company, has a differentiated business model with focus on the fast-growing custom synthesis and manufacturing (CSM) business, which contributes 60% of its revenues. Its strong research base and manufacturing practices make it a preferred outsourcing partner for the global chemical players for their innovative and patented products. Given its track record and established relations with global players, the company is able to introduce innovative agro-chemicals (which contribute 40% of the revenues) in the domestic market through the in-licencing of molecules. It has in its kitty blockbuster products like “Nominee Gold” and “Osheen” in association with MNCs.PI has a unique business model, strong relationship with global innovators, good revenue visibility in the CSM business and a well-spread distribution network, making it a compelling investment case. PI is one of the few agro-chemical companies that have a unique business model and are an example to the other chemical companies. On the valuation front, PI continues to attract a premium valuation over the other agro-chemical companies on account of its unique business model, strong visibility of earnings, robust balance sheet (to be debt-free by FY2017), impressive return ratios with strong free cash flows and excellent management. Currently, PI trades at PE of 23.2x FY2017E and 19.2x FY2018E earnings. We have valued the company at 25x FY2018E earnings. We initiate coverage on PI with a Buy recommendation and price target of Rs800.

For all recommendations, 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.

Read More