Alpha | PI Industries Limited – Equity Research Desk

January 17, 2023 . Equities Desk

PI Industries Limited – Superior Business Model

PI was set up in 1946 as an edible oil refinery by the late Mr. P P Singhal. The company later entered the agrochemical formulations business. In the mid-1990s, PI diversified into CSM exports for global agrochemical innovator companies. PI currently operates in the domestic agricultural inputs and CSM export segments.

It is a leading player in the domestic agricultural inputs sector, primarily dealing in agrochemicals and plant nutrients. In the CSM exports segment, its business interests include dealing in custom synthesis and contract manufacturing of chemicals, which constitutes techno-commercial evaluation of chemical processes, process development, lab and pilot scale-up, as well as commercial production.


We believe PIIND is well-placed for future growth given clear revenue visibility in the CSM segment and strong domestic formulation business. The company is also strategically developing its capabilities which are translating into improved asset turns and higher growth in the top line. Hence, we recommend a BUY rating in the stock with a target price (TP) of Rs.3850, 55x FY22E EPS.

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