PIIND - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:16 pm
Back to Fundamental ListFundamental Rating: 4.2
| Stock Code | PIIND | Market Cap | 49,460 Cr. | Current Price | 3,260 ₹ | High / Low | 4,330 ₹ |
| Stock P/E | 28.0 | Book Value | 728 ₹ | Dividend Yield | 0.50 % | ROCE | 25.4 % |
| ROE | 19.7 % | Face Value | 1.00 ₹ | DMA 50 | 3,474 ₹ | DMA 200 | 3,682 ₹ |
| Chg in FII Hold | -0.56 % | Chg in DII Hold | 1.05 % | PAT Qtr | 491 Cr. | PAT Prev Qtr | 464 Cr. |
| RSI | 27.5 | MACD | -79.0 | Volume | 1,82,235 | Avg Vol 1Wk | 2,02,322 |
| Low price | 2,951 ₹ | High price | 4,330 ₹ | PEG Ratio | 0.88 | Debt to equity | 0.00 |
| 52w Index | 22.4 % | Qtr Profit Var | -12.1 % | EPS | 116 ₹ | Industry PE | 27.6 |
📊 Core Financials: PIIND demonstrates strong fundamentals with ROE at 19.7% and ROCE at 25.4%. Debt-to-equity is 0.00, reflecting a debt-free balance sheet. Quarterly PAT at 491 Cr. shows resilience despite a -12.1% variation. EPS of 116 ₹ indicates solid earnings power, supported by consistent cash flows.
💹 Valuation Indicators: Current P/E of 28.0 is aligned with industry P/E of 27.6, suggesting fair valuation. P/B ratio ~4.5 (Price 3,260 / Book Value 728) is reasonable given strong return metrics. PEG ratio at 0.88 highlights attractive growth-adjusted valuation. Intrinsic value appears close to current levels, offering margin of safety at lower price bands.
🏢 Business Model & Competitive Advantage: PI Industries operates in agrochemicals and custom synthesis, with strong R&D capabilities and global partnerships. Competitive advantage lies in innovation-driven growth, diversified product portfolio, and debt-free operations. Long-term demand for crop protection and specialty chemicals supports business resilience.
📈 Entry Zone Recommendation: RSI at 27.5 and MACD negative (-79.0) indicate oversold conditions. Entry zone: 2,950–3,150 ₹ for accumulation. Long-term holding is favorable given strong fundamentals, debt-free structure, and growth visibility in agrochemicals and specialty chemicals.
Positive
- ✅ Debt-free balance sheet
- ✅ Strong ROE (19.7%) and ROCE (25.4%)
- ✅ Attractive PEG ratio (0.88)
- ✅ Diversified business model with global partnerships
Limitation
- ⚠️ Quarterly profit decline (-12.1%)
- ⚠️ Stock trading below DMA 50 & DMA 200
- ⚠️ FII holdings decreased (-0.56%)
- ⚠️ Dividend yield relatively low (0.50%)
Company Negative News
- 📉 PAT variation shows decline despite overall profitability
- 📉 Technical weakness with RSI oversold and MACD negative
- 📉 Reduced FII participation (-0.56%)
Company Positive News
- 📢 DII holdings increased (+1.05%)
- 📢 Strong EPS (116 ₹) supports valuation
- 📢 Global demand for agrochemicals and specialty chemicals remains robust
Industry
- 🌐 Industry P/E at 27.6, showing balanced sector valuations
- 🌐 Agrochemical demand supported by food security and crop protection needs
- 🌐 Specialty chemicals sector benefiting from global outsourcing trends
Conclusion
🔎 PI Industries demonstrates strong fundamentals with high return ratios, debt-free operations, and attractive PEG valuation. Despite short-term profit decline and technical weakness, long-term prospects remain favorable. Entry around 2,950–3,150 ₹ offers margin of safety, making it a solid candidate for long-term compounding in agrochemicals and specialty chemicals.
Would you like me to extend this into a basket overlay with peer benchmarking against agrochemical and specialty chemical peers like UPL, SRF, and Aarti Industries to strengthen sector rotation clarity?
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