This mid-cap agrochemical stock, engaged in manufacturing, custom synthesis, and exporting agrochemicals, new molecules, and specialty chemicals for both domestic and international markets, is in focus after Morgan Stanley gave a target of Rs.5,000, which has an upside potential of up to 21 percent.
With a market capitalization of Rs. 63,101.08 crores, the share of PI Industries Limited has reached an intraday high of Rs. 4,173.20 per equity share, rising nearly 0.57 percent from its previous day’s close price of Rs. 4,149.55. Since then, the stock has retreated and is currently trading at Rs. 4,159.10 per equity share.
Morgan Stanley, a leading brokerage firm, has upgraded PI Industries to an ‘Overweight’ rating from its previous ‘Equalweight’ rating and set a new target price of Rs. 5,000 per share, suggesting a 20.5 percent upside potential compared to its previous day close of Rs. 4,149.55.
Morgan Stanley has given a positive outlook for PI Industries due to the expected recovery in the agrochemical sector by 2026. The brokerage believes that improving demand and better pricing will lead to stronger asset use and higher margins. They raised the valuation multiple for PI’s agrochemical segment from 17x to 23x and increased earnings estimates by 7 percent, showing growing confidence in this part of the business.
The firm expects PI to gain from higher volumes in domestic and export markets, plus growth from new molecules. Morgan Stanley sees potential for a 20 percent re-rating, supported by PI’s strong handling of competition in older products.
PI Industries Limited was established in 1946 and is headquartered in Gurgaon, Haryana, and is one of India’s leading agriscience and fine chemical companies. The company specializes in providing innovative farm solutions to farmers and partners with global innovators for custom synthesis, manufacturing, and distribution of chemical products.
The company serves over 3 million farmers and retailers in India and globally, with a strong presence in both domestic and export markets. The company has five formulation facilities and 15 multipurpose plants across four manufacturing locations, primarily in Gujarat.
Coming into financial highlights, PI Industries Limited’s revenue has increased from Rs. 1,741 crore in Q4 FY24 to Rs. 1,787 crore in Q4 FY25, which has grown by 2.64 percent. The net profit has decreased by 10.81 percent, from Rs. 370 crore in Q4 FY24 to Rs. 330 crore in Q4 FY25.
P I Industries Limited’s revenue and net profit have grown at a CAGR of 14.61 percent and 25.29 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 22.6 percent and 17.6 percent, respectively. PI Industries Limited has an earnings per share (EPS) of Rs. 109, and its debt-to-equity ratio is 0.02x.
Written By – Nikhil Naik
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