Hold PI Industries, target price Rs 3500: Axis Securities

Axis Securities has hold call on PI Industries with a target price of Rs 3500. The current market price of PI Industries is Rs 3255.05. Time period given by analyst is one year when PI Industries Ltd. price can reach defined target.

PI Industries Ltd., incorporated in the year 1946, is a Large Cap company (having a market cap of Rs 48907.85 Crore) operating in Pesticides/Agro Chemicals sector.

PI Industries Ltd. key Products/Revenue Segments include Agri inputs, Export Incentives, Sale of services and Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1567.30 Crore, up 10.75 % from last quarter Total Income of Rs 1415.20 Crore and up 28.31 % from last year same quarter Total Income of Rs 1221.50 Crore. Company reported net profit after tax of Rs 258.50 Crore in latest quarter.

Investment Rationale
The brokerage believes PI Industries is well-placed for future growth given clear revenue visibility in the CSM segment and strong domestic formulation business. The company has also revised its growth estimates on cautious notes to over 20% given the positive demand outlook which showcases the demand upbeat. Although the valuations have factored in the growth prospects & it, therefore, revises rating on the stock from BUY to HOLD with a revised target price of Rs 3500 valuing the stock at 37x its FY24E EPS implying an upside of 9% from CMP

Promoter/FII Holdings
Promoters held 46.74 per cent stake in the company as of 31-Mar-2022, while FIIs owned 23.1 per cent, DIIs 18.66 per cent.