Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy P.I. Industries; target of Rs 1278 Prabhudas Lilladher

Prabhudas Lilladher is bullish on P.I. Industries has recommended buy rating on the stock with a target price of Rs 1278 in its research report dated May 20, 2019.

May 22, 2019 / 11:05 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

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

PI's strong revenue growth of 29% was driven by new product commercialisation and ramp up in demand of existing products in the CSM segment (~39% rev growth in 4Q). Sizeable sustained capex guidance (Rs 4.0-4.5 bn p.a. for the next 2-3 years, business commitment for new products, increasing number of products moving from R&D stage to commercialisation and continued demand traction for existing products gives us comfort of superior earnings growth visibility for the next 2 years. On the domestic side, PI's outperformance vis-à-vis competitors is expected to continue. Domestic business is expected to get a boost with the launch of 2 potential-blockbuster products i.e. PB Rope L and Pyroxasulfone.

Outlook

We expect revenue/EBITDA/PAT to grow at a CAGR of 20%/27%/24% between FY19-21E. We have increased our FY21E revenue/EBITDA/APAT estimates by 2%/3%/3% & target multiple from 23x to 28x FY21E earnings driven by superior earnings growth visibility on the back of sustained business/revenue momentum. Maintain Buy rating with a target price of INR 1278 (Previous TP- 1023).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 22, 2019 11:05 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347