Buy PI Industries, target price Rs 3010: ICICI Direct

ICICI Direct has buy call on with a target price of Rs 3010. The current market price of PI Industries Ltd. is Rs 2950.95.

PI Industries Ltd., incorporated in the year 1946, is a Large Cap company (having a market cap of Rs 44741.67 Crore) operating in Pesticides/Agro Chemicals sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1241.30 Crore, up 3.36 % from last quarter Total Income of Rs 1201.00 Crore and up 44.00 % from last year same quarter Total Income of Rs 862.00 Crore. Company reported net profit after tax of Rs 179.90 Crore in latest quarter.

Investment Rationale
The brokerage expects better growth from CSM to continue for this quarter as well on the back of strong order backlog and decent demand from the end industries. It expects topline to grow 25% YoY to Rs 1323 crore. OPM is likely to expand 30 bps YoY to 21.9% resulting into EBITDA growth of 26% YoY to Rs 290 crore. PAT should grow at 52% YoY to Rs 222 crore. Key Monitorable: Timelines for utilising QIP proceeds and venturing into pharma CDMO.

Promoter/FII Holdings
Promoters held 46.7 per cent stake in the company as of March 31, 2021, while FIIs held 19.4 per cent, DIIs 21.3 per cent and public and others 12.6 per cent.