Hold PI Industries; target of Rs 3930: ICICI Direct

ICICI Direct's research report on PI Industries

Incorporated in 1947, PI Industries focuses on complex chemistry solutions in agri and pharma sciences. The company maintains a strong research presence through its R&D facility in Udaipur, where it has a dedicated team of over 300 scientists • The revenues of the company can be subdivided into custom synthesis manufacturing (CSM) and domestic agrochem formulation business with the former contributing ~74% to overall revenue in FY22 and the rest coming from the domestic formulations business.

Outlook

We downgrade the stock from BUY to HOLD as the current valuation more or less fully incorporates buoyant CSM outlook and domestic traction. We value PI Industries at 45x FY24E EPS to arrive at a revised target price of Rs 3930/share (earlier Rs 3710/share).