PIIND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Stock Analysis: PI Industries (PIIND) Rating: 4.2

🧾 Core Financial Evaluation

Profitability & Returns

ROCE of 22.9% and ROE of 17.6% signal strong capital efficiency, especially for a diversified agrochemical and custom synthesis business.

EPS stands at ₹109 — solid earnings power.

Earnings Trajectory

PAT dropped from ₹373 Cr to ₹330 Cr (QoQ decline of 10.6%) — needs monitoring to confirm if cyclical or structural.

Despite this, margins remain respectable, supporting overall resilience.

Capital Structure

Debt-to-Equity ratio is a lean 0.02 — extremely low leverage and healthy balance sheet.

Dividend Yield at 0.38% — consistent with growth-oriented companies prioritizing reinvestment.

💰 Valuation & Market Signals

Metric Value Commentary

P/E Ratio 38.8 Slightly above industry average (36.5) — pricing in quality

PEG Ratio 1.53 Indicates reasonable valuation relative to earnings growth

P/B Ratio ~6.35 Reflects moderate premium over book value

RSI & MACD RSI 62.0, MACD 26.9 Signals mild bullish momentum

Price Action ₹4,250 vs DMA 50/200: ₹4,020 / ₹3,847 Trading above key averages — technically supported

🧠 Business Model & Strategic Position

Overview: PI Industries operates in high-growth agrochemical and CRAMS (contract research and manufacturing services) segments.

Moat

Strong R&D ecosystem, long-standing global relationships, backward integration.

Government push for domestic manufacturing and global diversification of supply chains plays in its favor.

Institutional confidence remains solid despite a recent dip in FII holdings.

📌 Investment Strategy

Entry Zone Recommendation: Ideal entry range: ₹3,850–₹4,050. This area is near the DMA 200, with decent margin of safety and solid technical support.

Long-Term Holding Guidance

Strong candidate for medium- to long-term compounding, driven by earnings growth and innovation pipeline.

Watch for normalization in earnings dip and margin stability.

Suitable for investors seeking exposure to high-quality specialty chemicals and export-driven businesses.

If you'd like a multi-year earnings growth trend, or comparison to another specialty chemical player like Deepak Nitrite or Navin Fluorine, I’d be happy to chart it out for you. Let’s keep digging where the data gets juicy.

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