In the ever-evolving landscape of Indian agriscience, PI Industries Ltd. stands as a beacon of innovation and resilience. With a legacy spanning over seven decades, this Udaipur-based company has seamlessly blended traditional agricultural practices with cutting-edge chemical research, carving a niche for itself in both domestic and international markets.
As the global demand for sustainable and efficient agricultural solutions surges, PI Industries emerges as a compelling contender for investors seeking long-term growth in the agrochemical sector.
But does PIIND offer a compelling case for long-term investors? Let’s delve deeper.
Stock overview
| Ticker | PIIND |
| Industry/Sector | Chemicals (Pesticides & Agrochemicals) |
| Market Cap (₹ Cr.) | 55,075 |
| Free Float (% of Market Cap) | 53.24% |
| 52 W High/Low | 4804.05 / 2951.10 |
| P/E | 32.56 (Vs Industry P/E of 48.12) |
| EPS (TTM) | 112.00 |
About PI Industries
PI Industries Limited specialises in complex chemistry solutions for the agriculture and pharmaceutical industries. With a dedicated focus on research and development, the company operates advanced manufacturing facilities with integrated process development teams and in-house engineering capabilities.
PI Industries has a strong infrastructure across multiple locations and a significant presence in agri inputs, fine chemicals, and contract research and manufacturing services.
Key business segments
PIIND operates primarily in the following key business segments:
- CSM Exports: Provides end-to-end custom synthesis and manufacturing solutions for global agrochemical clients, including R&D and large-scale production.
- Domestic Agri Brands: Manufactures and markets agrochemicals and plant health products in India, focusing on innovation via in-licensing and partnerships.
- Pharmaceuticals: Offers contract research, development, and manufacturing services for APIs and intermediates in the pharma industry.
Primary growth factors for PI Industries
PI Industries key growth drivers:
- New product launches: Introduced 7 new products in FY24, including a biological, with 20+ in the pipeline which are the key drivers of export-led growth.
- Agchem exports growth: Agrochemical exports grew 19% YoY in FY24, driven by product scale-ups and new launches, contributing 70%+ to segment growth.
- Biologicals segment: Biologicals revenue grew ~35% YoY in FY24, fueled by rising demand for sustainable agri solutions.
- Pharma expansion: Pharma segment contributed ~5% to export revenue in FY24, with focus on CRO, CDMO, and API capabilities.
- R&D focus: Invests ~6.5% of revenue in R&D, enabling strong innovation and new product development for global competitiveness.
Detailed competition analysis for PI Industries
Key financial metrics – FY 24;
| Company | Revenue(₹ Cr.) | EBITDA Margin (%) | PAT Margin (%) | ROE % | ROCE % | P/E (TTM) |
| PI Industries | 7665.80 | 26.28% | 21.80% | 21.11% | 24.14% | 32.56 |
| UPL Ltd. | 43098.00 | 10.53% | -3.80% | -7.28% | 3.24% | – |
| Sumitomo Chemical | 2843.95 | 16.69% | 13.00% | 15.33% | 21.09% | 53.51 |
| Bayer CropScience Ltd. | 5103.20 | 18.69% | 14.51% | 26.63% | 34.56% | 43.10 |
Key insights on PI Industries
- Achieved a strong revenue CAGR of 22% over the last 5 years, driven by innovation and global demand.
- EBITDA margins improved from ~22% in FY20 to over 27% in FY24, supported by high-value product mix and operating leverage.
- Delivered robust profit CAGR of 33% over 5 years, reflecting efficient execution and margin expansion.
- Maintains a debt-free balance sheet, ensuring strong financial flexibility.
- Working capital cycle improved from 75 days to 52.5 days, indicating better operational efficiency.
- Undertook a capex of ₹649 crore in 9M FY25, strengthening manufacturing and R&D capabilities for future growth.
Recent financial performance of PI Industries for Q3 FY25
| Metric | Q3 FY24 | Q2 FY25 | Q3 FY25 | QoQ Growth (%) | YoY Growth (%) |
| Revenue (₹ Cr.) | 1897.50 | 2221.00 | 1900.80 | -14.42% | 0.17% |
| EBITDA (₹ Cr.) | 553.60 | 628.20 | 512.00 | -18.50% | -7.51% |
| EBITDA Margin (%) | 29.18% | 28.28% | 26.94% | -134 bps | -224 bps |
| PAT (₹. Cr.) | 447.20 | 507.50 | 372.50 | -26.60% | -16.70% |
| PAT Margin (%) | 23.57% | 22.85% | 19.60% | -325 bps | -397 bps |
| Adjusted EPS (₹) | 29.51 | 33.43 | 24.52 | -26.65% | -16.91% |
PI Industries financial update (Q3 FY25)
Financial performance
- In Q3 FY25, revenue remained flat YoY, with agrochemical exports growing ~2% and new products contributing ~40% YoY growth.
- EBITDA stood at ₹512.2 crore, down 8% YoY; 9M FY25 EBITDA rose 9% YoY to ₹1,726.4 crore.
- Capex of ₹649 crore incurred in 9M FY25 to support expansion and innovation.
- Trade working capital days reduced to 68 from 80 YoY, reflecting improved operational efficiency.
Business highlights
- Pharmaceutical segment revenue grew ~55% QoQ, though down ~50% YoY due to a high base.
- Domestic business grew ~5% YoY, aided by a better product mix to sustain margins.
- Order book stood at $1.4 billion as of 31st December 2024, indicating strong revenue visibility.
Outlook
- Management guides for an effective tax rate of ~22%–23% going forward.
- Pharma revenue is expected to reach ₹500–₹700 crore over the next 2 years.
- Biologicals segment poised for faster growth, with the global market projected to hit ~$20 billion in 3–4 years.
Company valuation insights – PI Industries
PI Industries (PIIND) currently trades at a TTM P/E of 32.56, below the industry average of 48.12, suggesting reasonable valuations amid a challenging macro environment. The stock has declined 2.13% over the past year, underperforming the Nifty 50’s gain of 7.70%.
While near-term demand remains subdued, management has revised its revenue growth guidance from high single-digit to low single-digit due to ongoing global headwinds.
However, recovery is anticipated in the second half of CY25, supported by a robust pipeline of over 20 products in various stages of development and registration. The company plans a capex of ₹800–1,000 crore in FY25 to fuel future growth.
Despite short-term caution, the long-term structural story remains intact. At the current price, PIIND trades at an attractive valuation of 30x FY27E EPS of ₹136, implying a target price of ₹4,080 and an upside potential of 12%.
A combination of product innovation, export recovery, and continued investment in R&D underpins a cautiously optimistic sector outlook and supports a favourable long-term view on the stock.
Major risk factors affecting PI Industries
- Agri dependency: Revenue is sensitive to monsoons, pest cycles, and crop pattern changes.
- Regulatory risk: Stringent global norms can delay approvals and restrict market access.
- Raw material volatility: Input cost fluctuations may pressure margins if not passed on.
Technical analysis of PI Industries share
PIIND has recently broken out of a descending channel on the daily chart in March, indicating a shift in sentiment. In April, the stock successfully retested the upper trendline of the channel and bounced back, reaffirming bullish intent.
The stock is currently trading above its 50-day and 100-day moving averages and is approaching its 150-SMA – a strong setup pointing towards continued upside momentum.
MACD remains highly positive at 61.65, with the line comfortably above the signal line, confirming bullish momentum. RSI at 64.37 is nearing the overbought zone, reflecting strong buying interest. Additionally, Relative RSI is positive over both the 21-day (0.04) and 55-day (0.01) periods, suggesting slight outperformance versus the benchmark.
ADX at 23.55 reflects a developing trend that could strengthen if the price breaks above key resistance.
A sustained move above ₹3800 may unlock the path toward ₹4080 and higher. On the downside, ₹3500 is seen as a critical support level.
- RSI: 64.37 (Bullish)
- ADX: 23.55 (Developing Trend)
- MACD: 61.65 (Positive)
- Resistance: ₹3800
- Support: ₹3500
PI Industries stock recommendation
Current Stance: Buy with a target price of ₹4,080 over a 12-month horizon. PI Industries’ strong R&D pipeline, global client relationships, and leadership in the CSM segment position it well for medium- to long-term growth despite near-term softness.
Why Buy Now?
R&D-Led Growth: Over 20 products in the pipeline; sustained focus on innovation supports long-term growth.
Export Resilience: Agchem exports grew ~2% YoY despite global headwinds; biologicals and pharma are emerging growth engines.
Operational Efficiency: Working capital days reduced to 68 (from 80 YoY); almost debt-free balance sheet adds financial strength.
Capex-Backed Expansion: Planned ₹800 - 1,000 crore FY25 capex to fuel future growth across segments.
Portfolio Fit
PI Industries offers exposure to innovation-driven export growth with a strong focus on sustainability and pharmaceuticals. It’s a quality compounder ideal for investors seeking steady long-term returns with lower leverage and strong R&D execution.If you found this helpful and want regular stock trade calls, check out my community on StockGro here: https://app.stockgro.club/ui/social/tradeViews/groupFeed/07a7b961-b8ca-42ce-baf3-a9eec781b6ebPI Industries: Budget 2025-26 opportunities
- Agri boost: Increased focus on farm productivity and precision agriculture supports PI’s agrochemical demand.
- Green chemistry push: Incentives for sustainable manufacturing align with PI’s biologicals and eco-friendly portfolio.
- Export incentives: FTAs, RoDTEP, and PLI schemes enhance global competitiveness in agrochem and pharma exports.
- R&D Support: Budgetary push for innovation and academia-industry tie-ups aids PI’s CSM and pharma pipeline.
- Localisation Drive: Incentives for local intermediaries and reduced import dependency support PI’s backwards integration.
Final thoughts
PI Industries stands out as a well-managed company with a strong track record, robust financials, and a clear vision for the future. Its strategic diversification, commitment to innovation, and global expansion efforts position it favorably in the agrochemical and pharmaceutical sectors.
While there are inherent risks associated with the industry, PI Industries’ proactive approach to risk management and its solid financial foundation make it a compelling consideration for investors seeking exposure to India’s agriscience growth story.​
