PIIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | PIIND | Market Cap | 42,288 Cr. | Current Price | 2,783 ₹ | High / Low | 4,330 ₹ |
| Stock P/E | 27.4 | Book Value | 749 ₹ | Dividend Yield | 0.58 % | ROCE | 17.8 % |
| ROE | 14.2 % | Face Value | 1.00 ₹ | DMA 50 | 3,020 ₹ | DMA 200 | 3,276 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | 0.26 % | PAT Qtr | 281 Cr. | PAT Prev Qtr | 298 Cr. |
| RSI | 35.0 | MACD | -30.6 | Volume | 8,37,217 | Avg Vol 1Wk | 11,03,967 |
| Low price | 2,700 ₹ | High price | 4,330 ₹ | PEG Ratio | 3.30 | Debt to equity | 0.01 |
| 52w Index | 5.09 % | Qtr Profit Var | -27.1 % | EPS | 94.6 ₹ | Industry PE | 24.4 |
📊 Financial Overview: PI Industries (PIIND) has a market cap of ₹42,288 Cr with a current price of ₹2,783. The 52-week range is ₹4,330–2,700. Profitability is decent with ROE at 14.2% and ROCE at 17.8%. Debt-to-equity ratio of 0.01 indicates negligible leverage. PAT stood at ₹281 Cr compared to ₹298 Cr in the previous quarter, showing slight decline. EPS is ₹94.6, reflecting strong earnings capacity.
💰 Valuation Indicators: Stock P/E is 27.4, slightly above the industry average of 24.4, suggesting mild overvaluation. Book value is ₹749, giving a P/B ratio of ~3.71. PEG ratio of 3.30 indicates stretched valuation relative to growth. Dividend yield of 0.58% provides modest shareholder returns. Intrinsic value appears close to current price, offering limited margin of safety.
🌱 Business Model & Competitive Advantage: PI Industries operates in agrochemicals and specialty chemicals. Its competitive advantage lies in strong R&D, global partnerships, and diversified product portfolio. Healthy margins and debt-free status strengthen its financial health, though earnings volatility remains a concern.
📈 Entry Zone & Long-Term Guidance: The stock looks slightly overvalued at current levels. A better entry zone would be ₹2,600–2,700, closer to support levels. Long-term holding looks favorable given strong fundamentals, provided earnings growth stabilizes and valuations moderate.
Positive
- 📈 [Strong Returns](ca://s?q=PI_Industries_ROE_ROCE): ROE at 14.2% and ROCE at 17.8% are healthy.
- 🏦 [Low Debt](ca://s?q=PI_Industries_debt_to_equity): Debt-to-equity ratio of 0.01 shows strong balance sheet.
- 🌱 [Agrochemical Leadership](ca://s?q=PI_Industries_business_model): Strong presence in agrochemicals and specialty chemicals.
Limitation
- ⚖️ [High Valuation](ca://s?q=PI_Industries_PE_ratio): P/E of 27.4 compared to industry average of 24.4.
- 📉 [Profit Decline](ca://s?q=PI_Industries_quarterly_profit): PAT fell from ₹298 Cr to ₹281 Cr QoQ.
- 📊 [PEG Ratio](ca://s?q=PI_Industries_PEG_ratio): PEG of 3.30 suggests valuation stretched relative to growth.
Company Negative News
- 📉 [Profit Variation](ca://s?q=PI_Industries_profit_variation): Quarterly profit variation at -27.1% shows instability.
- 📊 [FII Exit](ca://s?q=PI_Industries_FII_holdings): FII holdings decreased by -0.10%.
Company Positive News
- 📈 [DII Support](ca://s?q=PI_Industries_DII_holdings): DII holdings increased by +0.26%.
- 📊 [Technical Support](ca://s?q=PI_Industries_DMA_levels): Current price near DMA 50 (₹3,020) and DMA 200 (₹3,276) indicates support levels.
Industry
- 🌱 [Agrochemical Sector](ca://s?q=India_agrochemical_industry): Industry PE at 24.4, showing moderate valuation.
- 📊 [Growth Drivers](ca://s?q=India_agriculture_growth): Rising demand for crop protection and specialty chemicals supports sector expansion.
Conclusion
⚖️ PI Industries’ fundamentals are solid with strong profitability, low debt, and leadership in agrochemicals. However, high valuation, profit decline, and stretched PEG ratio limit attractiveness. Entry is advisable near ₹2,600–2,700 for better risk-reward. Long-term holding looks favorable if earnings growth stabilizes and valuations moderate.