PIIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials Analysis

Profitability

ROE: 19.7% and ROCE: 25.4% — strong returns, indicating efficient capital use.

EPS: ₹121 — robust earnings per share, supporting valuation.

Quarterly PAT: ₹464 Cr vs ₹386 Cr — healthy growth, though recent variation shows a slight dip (-6.84%).

Balance Sheet & Cash Flow

Debt-to-equity: 0.01 — virtually debt-free, a major strength.

Dividend Yield: 0.43% — low, typical for growth-oriented companies.

Strong cash flows inferred from low debt and consistent profitability.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 30.7 Fairly valued vs industry PE of 31.7

P/B Ratio ~5.46 Reasonable given high ROE

PEG Ratio 0.97 Slightly undervalued — growth supports price

Intrinsic Value ₹3,500–₹3,700 (est.) Current price near fair value zone

🧠 Business Model & Competitive Edge

Company Profile: PI Industries is a leading player in agrochemicals and custom synthesis, with a strong focus on R&D and exports.

Segments

Domestic agri-inputs.

Global custom synthesis (CSM) — high-margin, IP-driven contracts.

Moat

Deep client relationships in CSM.

Strong innovation pipeline and backward integration.

High entry barriers due to regulatory approvals and technical complexity.

📈 Technical & Sentiment Overview

RSI: 41.7 — mildly bearish, potential for rebound.

MACD: -54.4 — negative momentum, short-term weakness.

DMA 50 & 200: Price below both — technical correction phase.

Volume: Above weekly average — active interest despite dip.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹3,500–₹3,650 — near intrinsic value and technical support.

Holding Strategy

Ideal for long-term investors seeking exposure to high-quality chemical exports.

Strong fundamentals, low debt, and global CSM tailwinds make it a durable compounder.

Price targets for 2026–2027 range from ₹4,116 to ₹5,503 based on projected earnings

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PI Industries blends innovation with execution, making it a standout in specialty chemicals. If you're building a portfolio of high-ROE, low-debt growth stocks, this one deserves serious consideration. Want to explore its CSM pipeline or compare it with peers like Deepak Nitrite or SRF?

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