⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PIIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | PIIND | Market Cap | 44,457 Cr. | Current Price | 2,931 ₹ | High / Low | 4,330 ₹ |
| Stock P/E | 27.1 | Book Value | 728 ₹ | Dividend Yield | 0.55 % | ROCE | 25.4 % |
| ROE | 19.7 % | Face Value | 1.00 ₹ | DMA 50 | 3,119 ₹ | DMA 200 | 3,430 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.68 % | PAT Qtr | 298 Cr. | PAT Prev Qtr | 491 Cr. |
| RSI | 37.2 | MACD | -62.2 | Volume | 2,55,794 | Avg Vol 1Wk | 2,38,350 |
| Low price | 2,840 ₹ | High price | 4,330 ₹ | PEG Ratio | 0.86 | Debt to equity | 0.00 |
| 52w Index | 6.10 % | Qtr Profit Var | -29.6 % | EPS | 107 ₹ | Industry PE | 22.2 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined to ₹298 Cr. from ₹491 Cr. (-29.6%). ROE (19.7%) and ROCE (25.4%) remain strong, reflecting efficient capital use despite profit drop.
- Debt & Liquidity: Debt-to-equity at 0.00 indicates zero leverage, ensuring strong balance sheet and cash flow stability.
- Valuation: P/E of 27.1 is slightly above industry average (22.2), suggesting mild overvaluation. P/B ~4.0 indicates premium pricing. PEG ratio (0.86) reflects healthy growth-adjusted valuation.
- Technical Indicators: RSI at 37.2 indicates oversold conditions; MACD at -62.2 signals bearish trend. Current price ₹2,931 is below DMA 50 (₹3,119) and DMA 200 (₹3,430), showing weakness.
🏢 Business Model & Competitive Advantage
- PI Industries operates in agrochemicals and specialty chemicals, with strong R&D and partnerships in custom synthesis.
- Competitive advantage lies in innovation, global client base, and leadership in contract research and manufacturing services (CRAMS).
💡 Entry Zone Recommendation
- Entry zone: ₹2,850–₹3,000, near recent lows and support levels.
- Attractive for long-term investors given strong fundamentals and zero debt, despite short-term profit decline.
📈 Long-Term Holding Guidance
- Suitable for long-term holding due to strong ROE/ROCE and sector growth potential.
- Upside potential tied to global agrochemical demand and specialty chemical expansion.
✅ Positive
- Strong ROE (19.7%) and ROCE (25.4%).
- Zero debt-to-equity ratio ensures financial strength.
- PEG ratio (0.86) indicates fair growth-adjusted valuation.
- DII holdings increased (+0.68%).
⚠️ Limitation
- Quarterly PAT declined (-29.6%).
- P/E (27.1) slightly above industry average (22.2).
- Stock trading below DMA 50 and DMA 200, showing bearish trend.
📉 Company Negative News
- Profit decline from ₹491 Cr. to ₹298 Cr.
- Bearish technical indicators (MACD negative, RSI oversold).
- FII holdings reduced (-0.45%).
📈 Company Positive News
- DII holdings increased (+0.68%).
- Strong efficiency metrics (ROE/ROCE).
- Zero debt ensures financial flexibility.
🏭 Industry
- Agrochemical industry P/E at 22.2, slightly lower than PI Industries’ valuation.
- Sector growth driven by global food security needs and demand for specialty chemicals.
🔎 Conclusion
- PI Industries is fundamentally strong with high efficiency and zero debt, but faces short-term profit decline and bearish technicals.
- Entry near ₹2,850–₹3,000 is attractive for long-term investors; recommended as a cautious but strong holding in specialty chemicals and agrochemicals.