2,400% return in 10 years! Why brokerages see more upside in multibagger PI Industries

Shares of PI Industries have zoomed over 2,400 per cent in the last ten years. An investment of Rs 1 lakh in this multibagger stock in January 2013 would have turned to Rs 26 lakh today.

PI Industries' share price which stood at Rs 127 on January 7, 2013, rose to Rs 3321.60 in trade on January 9, 2023.

The stock hit a 52-week high of Rs 3,698.50 on November 09, 2022, and a 52-week low of Rs 2,334.35 on January 27, 2022.

Wondering what's next?

Sharekhan believes that PI’s strong balance sheet provides ample scope for organic and inorganic growth over the medium to long term and its earnings growth outlook remains robust supported by the CSM order book of $1.8 billion, a ramp-up of nine new products commercialised in the last one year and launch of new products in FY23.

It added that the robust order book and potential pharma acquisition provide a long runway for growth in CSM business apart from de-risking PI Industries from concentration in agrochemical business. The brokerage has a target price of Rs 4,200 on PI Industries.

"Domestic formulation business is also well placed given its Pan-India presence, improved product offerings (expanded into horticulture/wheat) and high growth for existing products," it said.

Angel One expects PI Industries to post revenue/PAT CAGR of 17%/24% between FY22-FY24 driven by 20% growth in the CSM business over the next 2-3 years.

Moreover, a foray into new segments like electronic chemicals and APIs will also help drive growth over the next 3-4 years for the company, it said.

Angel One also has a 'Buy' rating on the stock with a target price of Rs 4,000 per share.

PI Industries Limited is engaged in the manufacturing and distribution of agrochemicals. The company manufactures agrochemicals, plant nutrients and plant protection, speciality fertilisers and hybrid seeds.