Stock is really good for long term, recently it has done the acquisitions in the pharma API and intermediates business, it will be earnings and value-accretive.
PI Industries (PIIND; CMP: Rs 3,066; Market Cap: Rs 46,512 crore), a leading player in the global CSM (custom synthesis manufacturing) export business, announced on April 27, 2023, that some of its subsidiaries have signed share purchase agreements with a few companies in the CSM pharmaceutical space. For quite some time, PI has been working on inorganic opportunities to enter pharma intermediates, which we view as a key catalyst for the stock.
With this acquisition, we see good growth opportunities for PI and it is among our preferred picks in the agrochemical space.
PI Industries has signed share purchase agreements to acquire 100 percent shareholding of the following.
PI Health Sciences Ltd (PIHSL): It is a wholly owned subsidiary of PI Industries. It has agreed to acquire TRM India and Solis Pharmachem, which are Indian subsidiaries of Therachem Research Medilab LLC (TRM US). The total cash consideration payable for the acquisition of TRM India is 442 million, and, for Solis Pharmachem, it is 3 million. Both the deals are expected to close in May 2023.
Valuation looks very Attractive for this ticker. Long term growth story also looks very promising.
Market Cap ₹ 51,327 Cr. Current Price ₹ 3,383 High / Low ₹ 3,698 / 2,365 Stock P/E 44.5 Book Value ₹ 436 Dividend Yield 0.18 % ROCE 17.3 % ROE 14.7 % Face Value ₹ 1.00 Debt ₹ 280 Cr. EPS ₹ 76.0 PEG Ratio 3.44 Promoter holding 46.1 % Intrinsic Value ₹ 1,560 Pledged percentage 0.00 % EVEBITDA 30.5
PROS
Company has reduced debt. Company is almost debt free. Company's median sales growth is 18.5% of last 10 years
I have done my analysis and i found it very good stock to invest for long term. The target which i have written on chart can achieve in 1-2 years. Long term story is still pending you won't be surprise if i tell you this can generate multibaggers returns from here too. Well trade carefully.
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500 Rs up from our buying range. What a move we got here to this was also a perfect analyse. Everyone making profits whoever has joined with us. Please like and follow thanks.