Target: ₹4,477
CMP: ₹3,227.80
In Q3 FY25, PI Industries Ltd (PIIL) registered a flat revenue growth of 0.2 per cent on a y-o-y basis, driven by a 0.7 per cent degrowth in exports, which was offset by a 5 per cent growth in the domestic business. EBITDA margin witnessed a decline of 224 bps on a y-o-y basis due to higher raw material costs and operating overheads.
For the fourth quarter in a row, the company commercialised 2 new products for exports and introduced two new products in its domestic branded business. Given the challenging macro environment, the company continues to stick to its topline guidance of high single digits. Given the anticipated business mix, PIIL’s confidence to maintain a 26-27 per cent EBITDA margin going forward remains intact despite a challenging scenario for agrochemical companies globally.
Despite a muted performance in Q3 FY25, we remain confident in PIIL’s ability to effectively execute its plans and scale up its Pharma business while continuing to steadily grow and diversify the CSM business. Therefore, based on our revised estimates, we are maintaining our BUY rating on PI Industries Ltd, with a target price of ₹4,477