PI Industries share price rallied over 5% on Monday to hit a record high of ₹4,430.00 apiece on the BSE. PI Industries shares have rallied more than 15% in one month and over 24% year-to-date (YTD).
The gains in PI Industries share price today came after brokerage firm Axis Securities gave its bullish view on the stock. PI Industries stock is Axis Securities’ pick of the week.
Axis Securities has a ‘Buy’ rating on PI Industries shares with a target price of ₹4,644 per share, implying an upside potential of more than 10% from Friday’s closing price.
The brokerage firm highlighted four key factors on why investors should buy PI Industries shares. According to Axis Securities, PI Industries has a healthy product pipeline and innovation track record along with a strong CSM (Contract Services and Manufacturing) orderbook. The expansion in the Pharma segment is expected to add to the topline of the company. Favorable monsoon season is also a driving factor for the bullish view.
PI Industries reported a net profit of ₹1,671 crore upon a revenue of ₹7,666 crore in FY24. Axis Securities expects the company to deliver a net profit of ₹1,759 crore and revenue of ₹8,793 crore in FY25.
“The management has maintained its revenue growth guidance of 15% for FY25, driven by the new molecule pipeline and an expanding CSM book. The company expects EBITDA margins to sustain at 24-25% due to an improved product mix, a higher share of exports in revenues, and consistent working capital requirements. PI Industries' strong track record, long-term relationships, and capability to innovate new molecules support a valuation of 33x FY26E,” Axis Securities said.
PI Industries anticipates that acquiring Plant Health Care will strengthen its presence in the biologicals sector, where it currently has eight products. According to Axis Securities, this acquisition is expected to leverage its innovative chemical product pipeline and complementary technologies, thereby supporting medium-term growth.
PI Industries Ltd is a leading player in the agro-chemicals sector, with operations in over 30 countries. The company’s export markets include the USA, Brazil, and Saudi Arabia, among others. PI Industries owns and operates five formulation facilities and 13 multi-product plants, producing a variety of agricultural chemicals. The company is a major producer of generic molecules such as Profenofos, Ethion, and Phorate in India.
At 12:50 pm, PI Industries shares were trading 4.21% higher at ₹4,381.95 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
