Remain positive on the future prospects of the company and PI Industries remains one of our top picks in the chemical space, says Jyoti Roy, DVP- Equity Strategist, Angel Broking.
PI industries share price touched 52-week high of Rs 1,966, rising over 7 percent intraday on August 5 after the company reported better-than-expected numbers for the quarter ended June 2020.
The company has posted a 43 percent jump in its Q1 consolidated net profit to Rs 145.5 crore against Rs 101.6 crore in the year-ago period. Revenue of the company increased by 40 percent YoY to Rs 1,060.1 crore versus Rs 754.1 crore.
“PI industries reported Q1 FY21 numbers which have come in significantly above the Street and our expectations. EBIDTA for the quarter was up by 50.3 percent YoY to Rs 229.2 crore, while EBIDTA margins expanded by 140 bps YoY to Rs 229.2 crore. Growth was driven by both exports and domestic revenues which grew by 23 percent and 76 percent YoY respectively, said Jyoti Roy, DVP- Equity Strategist, Angel Broking.
"The management has highlighted that both domestic and export supplies have picked up pace with all manufacturing facilities being operational and capacity utilisation building back to pre-COVID levels. Contribution from recently acquired Isagro too has also added to growth during the quarter," she said.
"The company has also successfully completed a Rs 2,000 crore QIP recently, proceeds of which will be used for strategic growth initiatives both organic and inorganic. A good monsoon bodes well for the domestic business while the export order book of $1.5 billion provides strong revenue visibility for the exports business."
"We remain positive on the future prospects of the company and PI Industries remains one of our top picks in the chemical space,” she further added.
At 12:11 hrs PI Industries was quoting at Rs 1,905.20, up Rs 73.65, or 4.02 percent on the BSE.