Prabhudas Lilladher sees big upside as mid-cap stock rebounds from 52-week low
Premium- PI Industries share price may go up to ₹3340 apiece levels in long term, believes Prabhudas Lilladher
PI Industries shares have bounced back strong after hitting fresh 52-week low of ₹2,333.55 apiece on NSE in May 2022. PI Industries share price today is around ₹2530 per share levels that means the stock has delivered around 9 per cent upside swing after hitting its 52-week low. Prabhudas Lilladher is expecting more rise in the counter as its research report claims that the counter may go up to ₹3340 apiece levels in long term. As the scrip is trading around 2530 levels, brokerage is expecting near 30 per cent upside in the counter in long term time horizon.
Highlighting the fundamentals favouring bulls case in PI Industries shares, Prabhudal Lilladher report says, "We interacted with senior management of PI Industries (PI) to take an update on the business and outlook ahead. Key highlights: (a) The company remains confident on achieving growth guidance of 18-20% YoY for FY23 in both exports and domestic segment (supported by lower base of last year); (b) remunerative commodity prices bode well for domestic market; (c) delayed monsoons have an impact on placements; however, remains hopeful of monsoon revival; (d) to launch 5-6 products in domestic market in FY23; (e) CSM business continues to be the shop stopper with mix changing to 80:20 for Agri and non-agri, going forward; (f) Pharma acquisition still in evaluation stages; likely to be done in next couple of quarters."
On reason for being bullish on the counter, the research report further added, "PI remains confident on the core business and its growth guidance with margins likely to improve from current levels, primarily led by strong enquiries in CSM business and new launches in domestic segment. We believe, the stock has corrected ~35% from its recent highs, thus providing a good entry point with strong earnings visibility in its core business. We broadly maintain FY23/FY24 EPS."
On its suggestion to stock market investors in regard to PI Industries shares, Prabhudas Lilladher report says, "We expect PI to report revenue/PAT CAGR of 18%/ 23% (FY11-22, 20%/26%) over FY22-24E. Maintain ‘BUY’ with unchanged TP of INR 3,340 based on 40xFY24 EPS."
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