Goal: ₹4,477
CMP: ₹3,227.80
In Q3 FY25, PI Industries Ltd (PIIL) registered a flat income development of 0.2 per cent on a y-o-y foundation, pushed by a 0.7 per cent degrowth in exports, which was offset by a 5 per cent development within the home enterprise. EBITDA margin witnessed a decline of 224 bps on a y-o-y foundation resulting from larger uncooked materials prices and working overheads.
For the fourth quarter in a row, the corporate commercialised 2 new merchandise for exports and launched two new merchandise in its home branded enterprise. Given the difficult macro surroundings, the corporate continues to stay to its topline steerage of excessive single digits. Given the anticipated enterprise combine, PIIL’s confidence to keep up a 26-27 per cent EBITDA margin going ahead stays intact regardless of a difficult state of affairs for agrochemical firms globally.
Regardless of a muted efficiency in Q3 FY25, we stay assured in PIIL’s potential to successfully execute its plans and scale up its Pharma enterprise whereas persevering with to steadily develop and diversify the CSM enterprise. Due to this fact, primarily based on our revised estimates, we’re sustaining our BUY score on PI Industries Ltd, with a goal worth of ₹4,477.
