Accumulate PI Industries; target of Rs 2406: Dolat Capital Market

Dolat Capital Market's research report on PI Industries

The company reported a consolidated sales growth of 27.6% YoY to Rs 11.5bn. A strong sales growth in the CSM business (up 25% YoY to Rs 7.98bn) coupled with improving contribution from ISAGRO (Rs 996mn from domestic business, Rs 109mn from exports) led to a beat on our sales estimate of Rs 10.5bn. EBITDA growth of 45.5% YoY to Rs 2.8bn came in from an improvement in gross margins of 170bps YoY with improved business mix and product mix coupled with easing input costs.

Outlook

We roll forward FY23E estimates and revise our target price, we are valuing PI Industries at 40x FY23E EPS with a target price of Rs 2,406/share. We have an Accumulate rating on the stock.

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