PI Industries Gains Most In Two Weeks On Q1 Beat

Shares of PI Industries Ltd. surged after net income and revenue beat analysts' estimate in the quarter ended June.

PI Industries Q1 FY23 (Consolidated, YoY)

• Revenue up 29% at Rs 1,543.2 crore (Estimate: 1,418 crore)

• Ebitda up 39% at Rs 345.60 crore

• Ebitda margin at 22% against 21%

• Net profit up 40% at Rs 262.4 crore (Estimate: Rs 220 crore).

Shares of PI Industries rose as much as 6% in intraday trade and closed with 3.70% gains, the best day in two weeks. The trading volume was more than eight times the 30-day average.

Of the 28 analysts tracking the company, 23 maintain a 'buy', three suggest a 'hold' and two recommend a 'sell', according to Bloomberg data. The 12-month consensus price target implies a downside of 2.4%.

Morgan Stanley reiterated 'overweight/In-line' rating, while Axis Research retained 'buy' on the stock in the last two days.

Motilal Oswal

• Operating performance better than estimates, while exports aiding revenue growth.

• Favourable price and currency movement aided exports and volume growth.

• Trend in rising input costs continued while adjusted PAT grew 40% YoY.

Dolat Capital

• Revenue growth was aided by strong custom synthesis manufacturing sales.

• Delay in monsoon could have impacted domestic business adversely.

• Expects exports business to growth at 20% in FY2023E.

• Expects domestic business to improve with good rainfall witnessed across the country.

• Will review rating and estimates post conference call with the management later Thursday.