(1/17)
About:
PI is a leading player in the domestic agricultural inputs sector, primarily dealing in agrochemicals and plant nutrients.
In the CSM exports segment, its business interests include dealing in custom synthesis and contract manufacturing of chemicals.
About:
PI is a leading player in the domestic agricultural inputs sector, primarily dealing in agrochemicals and plant nutrients.
In the CSM exports segment, its business interests include dealing in custom synthesis and contract manufacturing of chemicals.
(2/17)
Industry Overview:
India ranks as 5th largest producer, 4th largest exporter & 13th largest importer of agrochem in the world.
The sector has been identified by government as one of the 12 Champion Sectors, where India can be a global hub for manufacturing & export.
Industry Overview:
India ranks as 5th largest producer, 4th largest exporter & 13th largest importer of agrochem in the world.
The sector has been identified by government as one of the 12 Champion Sectors, where India can be a global hub for manufacturing & export.
(3/17)
• The prospect of the sector is promising given the low penetration of the agrochem in
India at 0.4 kg/ha as compared to up to 13 kg/ha in US, Japan, China etc.
The key demand drivers
are growing population, nutritional needs, crop diversification, climate
change etc.
• The prospect of the sector is promising given the low penetration of the agrochem in
India at 0.4 kg/ha as compared to up to 13 kg/ha in US, Japan, China etc.
The key demand drivers
are growing population, nutritional needs, crop diversification, climate
change etc.
(4/17)
Integrated service:
The spectrum of services that PI
provides to its customers are
spread across its value chain,
ranging from R&D, product & application development,
registration, manufacturing,
marketing & distribution and
customer connect initiatives.
Integrated service:
The spectrum of services that PI
provides to its customers are
spread across its value chain,
ranging from R&D, product & application development,
registration, manufacturing,
marketing & distribution and
customer connect initiatives.
(5/17)
Products:
PI offers a wide range of products from insecticides to herbicides and fungicides.
They are the biggest producer of generic molecules like Profenofos, Ethion, Phorate
Products:
PI offers a wide range of products from insecticides to herbicides and fungicides.
They are the biggest producer of generic molecules like Profenofos, Ethion, Phorate
(6/17)
Product pipeline:
The company has launched 5 products thus far in FY23, & 2 more to come this quarter.
It is also expanding into new market segments such as TAURUS a revolutionary nematicide and TOMATOUGH, a unique biological
product.
Product pipeline:
The company has launched 5 products thus far in FY23, & 2 more to come this quarter.
It is also expanding into new market segments such as TAURUS a revolutionary nematicide and TOMATOUGH, a unique biological
product.
(7/17)
Q2FY23 Revenue Info:
• Revenue - ₹1,770 cr, up 31% on YoY. This was driven by growth in exports revenue by 29% to ₹1,278 cr & 36% increase in domestic revenue to ₹491 cr.
• Exports saw a volume growth of 25% & Domestic market saw a volume growth of 31%.
Q2FY23 Revenue Info:
• Revenue - ₹1,770 cr, up 31% on YoY. This was driven by growth in exports revenue by 29% to ₹1,278 cr & 36% increase in domestic revenue to ₹491 cr.
• Exports saw a volume growth of 25% & Domestic market saw a volume growth of 31%.
(8/17)
Improvement in margins:
Despite the inflationary pressure in the quarter gone by, the company managed to improve its margins by increasing product prices, both in
exports as well as in domestic markets.
It’s gross margin increased by 18
basis points to 45%
Improvement in margins:
Despite the inflationary pressure in the quarter gone by, the company managed to improve its margins by increasing product prices, both in
exports as well as in domestic markets.
It’s gross margin increased by 18
basis points to 45%
(9/17)
Key strengths:
• CSM exports:
PI group is one of the leaders of CSM in the agrochem space in India.
The CSM business is expected to grow at ~25% over the medium term backed by healthy order book of around $1.4 bn, providing revenue visibility for the next 2-3 years.
Key strengths:
• CSM exports:
PI group is one of the leaders of CSM in the agrochem space in India.
The CSM business is expected to grow at ~25% over the medium term backed by healthy order book of around $1.4 bn, providing revenue visibility for the next 2-3 years.
(10/17)
• Established position: A presence of over five decades in the business, healthy product mix, leadership in several generic products & increasing number of launches through the ILCM route has helped PI establish itself as one of the top players in this space.
• Established position: A presence of over five decades in the business, healthy product mix, leadership in several generic products & increasing number of launches through the ILCM route has helped PI establish itself as one of the top players in this space.
(11/17)
• Financial Profile:
The networth increased to ₹66,176 million. Total Capex for the half year stood at ₹1,204 million.
Net cash flow from operating activities during the first half year was ₹3,078 million.
Gearing was 0.04 times. With debt of ₹280cr.
• Financial Profile:
The networth increased to ₹66,176 million. Total Capex for the half year stood at ₹1,204 million.
Net cash flow from operating activities during the first half year was ₹3,078 million.
Gearing was 0.04 times. With debt of ₹280cr.
(12/17)
Weaknesses:
• Working capital requirement:
The agrochem industry is characterized by working capital-intensive operations.
PI’s working capital has gone up by 8 days in terms of days of sales from 103 days to 111 days during the first half year.
Weaknesses:
• Working capital requirement:
The agrochem industry is characterized by working capital-intensive operations.
PI’s working capital has gone up by 8 days in terms of days of sales from 103 days to 111 days during the first half year.
(13/17)
Key Ratios and Numbers:
• Market Cap: ₹ 52,513 Cr
• Stock P/E: 51.2 vs Ind P/E: 25.16
• RoCE: 17.3 %
• RoE: 14.7%
• PEG: 3.96( Very High)
• Sales 3 year CAGR: 23.1%
• Price to Sales: 8.66
• NPM Last year: 15.9%
• OPM Q2FY23: 24%
• D/E: 0.04
Key Ratios and Numbers:
• Market Cap: ₹ 52,513 Cr
• Stock P/E: 51.2 vs Ind P/E: 25.16
• RoCE: 17.3 %
• RoE: 14.7%
• PEG: 3.96( Very High)
• Sales 3 year CAGR: 23.1%
• Price to Sales: 8.66
• NPM Last year: 15.9%
• OPM Q2FY23: 24%
• D/E: 0.04
(14/17)
Shareholding Pattern:
• Promoters: 46.09%
• FIIs: 16.72%
• DIIs: 26%
• Public: 11.01%
• Others: 0.18%
Shareholding Pattern:
• Promoters: 46.09%
• FIIs: 16.72%
• DIIs: 26%
• Public: 11.01%
• Others: 0.18%
(15/17)
Conclusion:
PI has a growing presence in the CSM business which is very well supported by strong tie-ups with leading global innovators.
It’s established position in the domestic agrochemicals market also gives it that premium over its peers.
Conclusion:
PI has a growing presence in the CSM business which is very well supported by strong tie-ups with leading global innovators.
It’s established position in the domestic agrochemicals market also gives it that premium over its peers.
(16/17)
However, The challenge for PI today is to maintain a steady line of predictability on costs of raw
materials, power & fuel and the various other costs. It should also look to improve its working capital days.
However, The challenge for PI today is to maintain a steady line of predictability on costs of raw
materials, power & fuel and the various other costs. It should also look to improve its working capital days.
(17/17)
We expect a strong set of Domestic Q3 nos from the company owing to a healthy expected Rabi season.
Where do you think the company can improve its operations?
@caniravkaria @kuttrapali26 @chartmojo
We expect a strong set of Domestic Q3 nos from the company owing to a healthy expected Rabi season.
Where do you think the company can improve its operations?
@caniravkaria @kuttrapali26 @chartmojo
• • •
Missing some Tweet in this thread? You can try to
force a refresh
