Shares of PI Industries Limited surged around 9.5 percent today and currently trade at Rs 3,358. The scrip, in the last one month period, has delivered returns of approximately 16 percent ranging from Rs 2,904 to the current price levels.
One of the probable reasons for the stock prices to jump is pertaining to the recent regulatory filing filed by the company with the exchange.
The filing mentioned several share purchase agreements entered by PI Health Sciences Limited (PIHSL), a wholly-owned subsidiary of PI Industries Limited with the first one being an agreement between the company and ‘Therachem Research Medilab’ LLC (TRM US) for the acquisition of 100 shareholding of ‘TRM India’, an Indian subsidiary of TRM US.
In addition, PIHSL also entered into a share purchase agreement with Solis Pharmachem Private Limited, and subsidiaries of PIHSL had an agreement with Archimica S.p.A., for the acquisition of 100% shareholding in the companies.
PI Industries Limited is engaged in the process of manufacturing, selling, and distributing agrochemicals, specialty fertilizers, and seeds to the agriculture industry. PI Industries conducts domestic as well as international operations with the latter being present primarily in Germany, Japan, and China. Within India, the firm sells its products through a wide network of distributors and retail outlets.
Having a quick glance at the financials of the company, there have been opposing movements as far as the revenues and net profit numbers are concerned. Revenues went down from Rs 1,770 crores in Q2 to Rs 1,613 crores in Q3 and net profits, during the same period, moved up from Rs 334 crores to Rs 351 crores.
The profitability metrics have taken a hit in percentages with the return on equity (ROE) going down from 18.52 percent in FY20-21 to 14.71 percent in FY21-22. Moreover, the return on capital employed (ROCE) shifted downwards from 22.09 percent to 17.46 percent during the same timeframe.
Something on a good note is the reduced debt-to-equity ratio of the company with the most recent shift from 0.06 in FY20-21 to 0.04 in FY21-22.
According to the latest shareholding pattern data for the March quarter, promoters of the company hold a 46.09 percent stake, and Foreign Institutional Investors (FIIs) hold 18.59 percent stake in the company.
Written by Amit Madnani
