Hold P.I. Industries; target of Rs 2119: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on P.I. Industries with a target price of Rs 2119 in its research report dated February 03, 2021.

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February 04, 2021 / 18:42 IST

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on P.I. Industries

PI reported better than expected results driven by strong demand for key commercialised molecules and Isagro’s performance. Prudent raw material management, traction for branded portfolio, higher utilisation rates and better contribution from ISAGRO drove better than expected EBITDA growth of 34% to Rs 2.8 bn (PLe Rs 2.4 bn). We believe ramp up of 4 recently commercialised molecules and pipeline of +40 products (5-6 molecules in FY22, 12-15 molecules in the next 2 years) will drive growth in coming years, along with foray in pharma intermediates and inorganic opportunities. Management is evaluating few options very actively for inorganic growth (one in additives industry) and their endeavour is to generate better returns over a period of time than the current business. We are also keenly observing PI’s progress into the Pharma and other adjacent chemistry value chain, as it is likely to be a key determinant for further re-rating.

Outlook

We have increased our topline/ EBITDA/ APAT estimates by 3%/2%/2% for FY21, 4%/4%/5% for FY22 and 4%/4%/5% for FY23. Maintain HOLD with revised TP of Rs 2119 (Previous 2026) based on 30x FY23 EPS of Rs 70.

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