PI Industries - Maintain Buy As 11% Fall Has Priced In Worries: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Reasons to Buy PI Industries Ltd.Visible growth in custom synthesis manufacturing with 18-20% growth guidance aided by $1.8 billion order book. compound annual growth rate in FY24-FY26E revenue/earnings per share at 17.5%/15.7% offers future upside once we see improved visibility in pharma ramp-up and higher growth in agrochem CSM and domestic crop protection chemical once the overall market recovers to normal pricing and inventory levels. Post-tax return on capital employed also could see upside from our estimate of 16.2%/15.5% once the pharma investment starts generating cash flows at full potential. PI trades at September 25E price-to-earning of 26.8 times, which is below its five-year median PE of 35.3 times and 8% below the SD-1 reading on five-year PE. Maintain 'Buy' after cutting target price by 8.8% to Rs 3,953 due to 10% cut in target PE to 31 times Sep-25E to build in the concern regarding client concentration risk. We have left our estimates unchanged. The stock’s 11% fall (from Dec 11, 2023 close) has priced in concerns regarding client concentration..Click on the attachment to read the full report:.Archean Chemical - Robust Long-Term Growth Outlook: Axis Securities Initiates Coverage With A 'Buy'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

PI Industries - Maintain Buy As 11% Fall Has Priced In Worries: Nirmal Bang

PI trades at September 25E price-to-earning of 26.8 times, which is below its five-year median PE of 35.3 times and 8% below the SD-1 reading on five-year PE.

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