Mehabe score: 6 G Factor: 5 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 7.
Description
PI Industries Ltd is a leading player in the agro-chemicals space having strong presence in both Domestic and Export markets. It has state-of-art facilities in Gujarat having integrated process development teams with in-house engineering capabilities.#
Main Points
Revenue Breakup
Its revenues are divided under 2 main categories. It earns ~76% of its revenues from active ingredients and intermediaries and ~23% of revenues from sale of formulations.#Site:PIINDMain Symbol:PIIND
Stock trades at 2950.0, above its 50dma 2863.35. It also trades above its 200dma 2457.91. The stock remains bullish on techicals
The 52 week high is at 3309.75 and the 52week low is at 1750.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 18.73% CAGR over last 5 years
-Debtor days have improved from 70.41 to 56.10 days.
-‘s median sales growth is 21.61% of last 10 years
Weakness
– Stock is trading at 8.38 times its book value
-Promoter holding has decreased over last 3 years: -4.77%
Competition
– The industry trades at a mean P/E of 32.9x. Sumitomo Chemi. trades at the industry’s max P/E of 62.23x. PIIND trades at a P/E of 60.6x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. PIIND has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 0.8%. The max 1- month return was given by Sumitomo Chemi.: a return of 9.66 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1194.0 cr compared to Rs 1060.0 cr for period ended Jun 2020, a rise of 12.6%
Operating Profits reported at Rs 249.0 cr for period ended Jun 2021 vis-vis 229.0 for period ended Jun 2020 .
Operating Margins contracted -75.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 12.34 compared to Rs 11.85 for previous quarter ended Mar 2021 and Rs 10.54 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4711.0 cr for period ended TTM vis-vis sales of Rs 4577.0 cr for the period ended Mar 2021, a growth of 2.8%. The 3 year sales cagr stood at 18.4%.
Net Profit reported at Rs 780.0 cr for period ended TTM vis-vis sales of Rs 738.0 cr for the period ended Mar 2021, rising 5.4%.
Company recorded a healthy Net Profit CAGR of 23.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 725.0 cr for period ended Mar 2021 vis-vis Rs 698.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 68% on a 1 Year basis vis-vis a return of 54% over the last 3 Years. – The compounded sales growth on a TTM bassis is 36% vis-vis a compounded sales growth of 26% over the last 3 Years. – The compounded profit growth on a TTM basis is 62% vis-vis a compounded profit growth of 27% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 19.64% vis-vis 19.35% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 11.58% vis-vis 12.57% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 18.73% CAGR over last 5 years
-Debtor days have improved from 70.41 to 56.10 days.
-‘s median sales growth is 21.61% of last 10 years – Stock is trading at 8.38 times its book value
-Promoter holding has decreased over last 3 years: -4.77%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 2863.35 and is trading at 2950.0, thus bullish price action wise.
