Motilal Oswal is bullish on PI Industries has recommended buy rating on the stock with a target price of Rs 1266 in its research report dated May 20, 2019.
Motilal Oswal's research report on PI Industries
4QFY19 revenue increased 29% YoY to INR8b (our est. INR7.5b) with EBITDA up 28% YoY to INR1.7b (in-line). EBITDA margins contracted 10bp YoY to 21.4% (our est. 22.8%), while Adj. PAT increased 18% YoY to INR1.2b (in-line). For FY19, revenue/EBITDA/adj. PAT grew 25%/17%/12% YoY to INR28.4b/INR5.7b/INR4.1b.
Outlook
We value the stock at 27x FY21E EPS (in line with its 1-year forward multiple over the last three years) and expect revenue/PAT CAGR of 20%/26% over FY19-21E. Our TP of INR1,266 implies 15% upside. Maintain Buy.
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.
Read More
