PI Industries develops complex chemistry solutions in agri-sciences with an integrated approach. The company currently operates a strong infrastructure setup, consisting of three formulation facilities and fifteen multi-product plants under its four manufacturing facilities.
PI Industries has an upcoming dividend of Rs 5.50 per share due on August 11, 2023.
Rajesh Palviya of Axis Securities: | Target: Rs 4,000 | Upside: 17%
On the long-term chart, the stock is in a strong uptrend, forming a series of higher tops and bottoms formation, indicating sustained strength, Rajesh Palviya, Senior Vice President, Technical and Derivatives Research at Axis Securities said. The stock is well placed above its 20, 50, 100 and 200-day SMA, which reconfirms bullish sentiments, he added.
The daily, weekly and monthly strength indicator RSI is in a bullish terrain, which signals rising strength across all the time frames.
Though, on the short-term chart, the stock continues to consolidate in Rs 3,650 – Rs 2,850 levels, showing a short-term sideways trend. This consolidation has shaped a triangular pattern with a probable breakout zone of Rs 3,650 – Rs 3,700 levels.
On the upside, any sustainable up move above Rs 3,650-3,700 levels may lead to a significant breakout, and the stock may extend its up move towards Rs 3,900 – Rs 4,000 levels, the Axis Securities expert said.
The immediate support zone is around Rs 3,150, and the major support zone is around Rs 2,850 level.
Investors with a short-term view must watch out for volatility as the stock has traded with a 1-month beta of 1.32, which indicates high volatility in the stock. The stock continues to consolidate within the range of Rs 3,650 – Rs 2,850, showing a short-term sideways trend.
Sharekhan: Buy | Target: Rs 4,200 | Upside: 28%
Brokerage firm Sharekhan has a ‘buy’ stance on the stock, with a price target of Rs 4,200. At the market price of Rs 3,273, the stock traded at 33.7X its FY2024E EPS and 29.1X its FY2025E EPS. PI’s pharma foray would diversify its earnings stream and drive medium to long-term growth for the company, Sharekhan said.
Even after recent acquisitions, PI would have a strong net cash position of Rs 2,304 crore to pursue both organic and inorganic growth opportunities.
“We expect PI’s revenue/EBITDA/PAT to post a strong CAGR of 20%/19%/19% over FY2023-FY2025E, led by robust CSM order book of $1.8 billion and ramp-up of nine new products commercialised in the last one year. Growth would further improve post-integration of TRM and Archimica’s acquisition,” Sharekhan said.
The Q4FY23 performance was a mixed bag as a 15% year-on-year (YoY) growth in CSM (Custom Synthetic Manufacturing) revenues got offset by muted domestic revenues and 260 bps miss in Operating Profit Margins at 21.9% (flat YoY). The consolidated net profit of Rs 281 crore was up by 37.3% YoY) was 5% below our estimates of Rs. 294 crore as margin miss got partially offset by higher other income and lower interest cost.
1) Delayed commissioning of projects or execution of orders or delayed orders by clients in the export business can affect revenue growth and
2) Higher-than-normal time lag in passing on the increase in raw-material prices could affect margins.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)