PI Industries stock initiated with Hold rating by Prabhudas Lilladher

Published 26/09/2025, 15:48
PI Industries stock initiated with Hold rating by Prabhudas Lilladher

Investing.com - Prabhudas Lilladher initiated coverage on PI Industries Ltd (NS:PIIND) with a Hold rating and a price target of INR3,618.00, according to a research note released Thursday.

The research firm cited concerns about slowing growth in PI Industries’ Custom Synthesis Manufacturing (CSM) segment, projecting 6% CAGR in FY25-28E compared to the 21% CAGR achieved over the past five years. This slowdown is attributed to a 7% decline in sales guidance for pyroxasulfone from innovator Kumiai for the November 2024-October 2025 period.

Prabhudas Lilladher expects PI Industries’ pharmaceutical business to grow approximately 70% in FY26 and reach breakeven by FY28 at around Rs5 billion in revenue. The domestic business is forecast to deliver roughly 6% CAGR, primarily driven by biologicals while core formulations remain subdued.

The research firm estimates consolidated revenue, EBITDA, and PAT to grow at approximately 7%, 8%, and 7% CAGR respectively over FY25-28E, supported by new CSM launches, biologicals, and pharmaceutical scale-up.

At 28x FY27E EPS, Prabhudas Lilladher notes the stock is trading slightly above its sector average, and while R&D spending remains strong at 3% of sales, the firm awaits catalysts that could reignite investor interest in PI Industries.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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