⚠ 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: 4.2
| Stock Code | PIIND | Market Cap | 46,947 Cr. | Current Price | 3,098 ₹ | High / Low | 4,330 ₹ |
| Stock P/E | 26.6 | Book Value | 728 ₹ | Dividend Yield | 0.52 % | ROCE | 25.4 % |
| ROE | 19.7 % | Face Value | 1.00 ₹ | DMA 50 | 3,292 ₹ | DMA 200 | 3,565 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.68 % | PAT Qtr | 491 Cr. | PAT Prev Qtr | 464 Cr. |
| RSI | 38.0 | MACD | -38.9 | Volume | 2,13,005 | Avg Vol 1Wk | 1,85,236 |
| Low price | 2,951 ₹ | High price | 4,330 ₹ | PEG Ratio | 0.84 | Debt to equity | 0.00 |
| 52w Index | 10.6 % | Qtr Profit Var | -12.1 % | EPS | 116 ₹ | Industry PE | 27.7 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at ₹491 Cr. vs. ₹464 Cr. previously, showing stability though YoY profit variation is -12.1%. EPS at ₹116 reflects strong earnings power.
- Return Metrics: ROE at 19.7% and ROCE at 25.4% highlight excellent capital efficiency and profitability.
- Debt Position: Debt-to-equity ratio at 0.00 indicates a debt-free balance sheet, enhancing financial resilience.
- Cash Flow: Dividend yield of 0.52% provides modest shareholder returns alongside growth reinvestment.
💹 Valuation Indicators
- P/E Ratio: 26.6, slightly below industry average of 27.7, suggesting fair valuation.
- P/B Ratio: Current Price ₹3,098 vs. Book Value ₹728 → ~4.25, trading at a premium to book value.
- PEG Ratio: 0.84, attractive, reflecting growth-adjusted valuation alignment.
- Intrinsic Value: Strong fundamentals and efficient returns suggest intrinsic value is close to or above current price, making it fairly valued.
🧪 Business Model & Competitive Advantage
- PI Industries operates in agrochemicals and specialty chemicals, with strong R&D capabilities and global partnerships.
- Competitive advantage lies in innovation, diversified product portfolio, and export presence.
- Debt-free status and high ROCE provide resilience against industry cycles.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹2,950–3,100, near 52-week low and below DMA levels.
- Long-Term Holding: Suitable for investors seeking exposure to agrochemicals with strong fundamentals; long-term compounding potential remains robust.
Positive
- Strong ROE (19.7%) and ROCE (25.4%).
- Debt-free balance sheet ensures financial stability.
- PEG ratio at 0.84 indicates attractive growth-adjusted valuation.
- DII holdings increased (+0.68%), showing domestic institutional confidence.
Limitation
- Quarterly profit variation of -12.1% shows earnings pressure.
- P/B ratio at ~4.25 indicates premium valuation.
- Dividend yield modest at 0.52%, limiting income returns.
- Stock trading below DMA 50 (₹3,292) and DMA 200 (₹3,565), indicating bearish trend.
Company Negative News
- FII holdings reduced (-0.45%), showing lower foreign investor confidence.
- MACD negative (-38.9), signaling bearish momentum.
Company Positive News
- Quarterly PAT improved sequentially from ₹464 Cr. to ₹491 Cr.
- DII holdings increased (+0.68%), reflecting domestic institutional support.
- RSI at 38.0 indicates stock is near oversold territory, potential for rebound.
Industry
- Agrochemicals industry P/E at 27.7, slightly higher than PI Industries’ 26.6, suggesting fair valuation.
- Sector outlook supported by global demand for crop protection and specialty chemicals.
Conclusion
- PI Industries demonstrates strong fundamentals, high efficiency, and a debt-free balance sheet.
- Despite premium P/B valuation and recent earnings pressure, growth-adjusted metrics remain attractive.
- Accumulation near ₹2,950–3,100 is recommended, with strong potential for long-term compounding in agrochemicals and specialty chemicals.
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