PI Industries shares gain 2% on 46% surge in Q1 profit

Shares of PI Industries jumped nearly 2 percent in early trade on robust Q1 results. At 11:15am, the stock was trading 0.48 percent lower at Rs 3867.40 on the NSE.

Agro-chemicals maker PI Industries Ltd on August 9 reported a 46.2 percent jump in net profit at Rs 382.9 crore for the first quarter ended June 30, 2023 from Rs 262 crore last year, the company said in a regulatory filing.

Its total revenue stood at Rs 1,910.4 crore during the period under review, up 23.8 percent from Rs 1,543 crore a year ago. At the operating level, EBITDA jumped 35.4 percent to Rs 467.8 crore in the first quarter of this fiscal over Rs 346 crore last fiscal.

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EBITDA margin stood at 24.65 percent in the reporting quarter as compared to 22.4 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Brokerage Views

Brokerage firm Motilal Oswal has given a ‘buy’ rating to the PI Industries stock in a report released after results. The brokerage firm stated that operating performance was reported to be in line as per expectations. On the other hand, profit after tax (PAT) has beaten expectations on high ‘other income’ and lower taxes.

Brokerage firm Sharekhan is bullish on PI Industries has recommended the ‘buy’ rating on the stock with a target price of Rs 4,200 in its research report dated May 19. Prabhudas Lilladher has retained a positive outlook on the stock giving a target price of Rs 4,560.

“Despite headwinds in the agro-chemical sector, PI Industries reported stellar numbers driven by continued strength in CSM export business along with strong order book of $1.8 billion. We believe management’s guidance on delivering 20 percent plus revenue growth in FY24 with continued improvement in margins and returns is likely achievable. Further, acquisition into API business and intermediates will be value-accretive in coming quarters,” brokerage firm ICICI Securities said.

Stock Performance

The PI Industries stock has given a return of 24.02 percent over the last six months. Consequently, the stock has outperformed the benchmark Nifty50 index by a considerable margin as the benchmark index has given a return of 9.92 percent over the same duration.

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