Parag Thakkar of HDFC Securities told CNBC-TV18, "PI Industries as we all know 40 percent of their sale comes from domestic business which is very essential due to monsoon and we have seen decent monsoon. Kharif crops have seen increase in production. Pulses have seen 57 percent increase in the production. So, their domestic business which was not doing well till last year will do very well from here on.""It is a 32 percent return on capital (RoC) business, debt free company and 60 percent of the business is exports and there they have an order book of four years. Right now their top line is USD 200 million. They have an order book which is in excess of Rs 850 million. So debt free company with 32 percent RoC, business cycle improving and they did 32 percent RoC even last year when monsoons were bad. So, things are going to significantly improve from here on. So, trading at around 23 times FY18 earnings the Price-to-Earnings Ratio (PE) multiple can rerate because of improved earnings outlook," he added.
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