Why This Mutibagger Stock Plunged 8% In Today's Trade?

In intra-day trade on Tuesday, PI Industries' shares fell 8% to Rs 2,756 on the BSE after the firm cancelled an agreement linked to the acquisition of Ind-Swift Laboratories on a slump sale basis (ISLL). This is because ISLL has failed to meet several of the previously agreed-upon requirements precedents.

Ind Swift Laboratories' stock, on the other hand, was stuck in a 10% upper circuit at 67.40. On the BSE, PI Industries' stock was trading at 2,756, down around 8%. In the chemical sector, PI Industries has been a multi-bagger stock, with a 10-year return of 2,800%.

The transaction was subject to the fulfilment of pre-defined requirements established before the Long Stop Date of October 31, 2021, according to a November 1 statement from PI Industries. "The BTA has been cancelled because Ind-Swift Laboratories has failed to meet several of the pre-agreed precondition previously." "Today, PI Industries released a statement. "The Company has chosen not to pursue the aforementioned transaction further due to non-fulfillment and also disagreement on some of the pre-agreed terms."

PI Industries signed a Business Transfer Agreement (BTA) with ISLL on July 30, 2021, for the purchase of their API and Intermediates business venture on a slump sale going concern basis for Rs 1,530 crore.

PI Industries has been raising QIP money for the past two years, but the delay in allocating it to the pharma venture has pulled down return ratios. We expect a delay in selecting the right candidate for inorganic expansion to influence return on investments in the near term, but the long term storey remains positive about the future of the pharma CDMO sector, according to ICICI Securities in a note.

Only 2.23 percent of trading sessions in the last ten years had intraday drops of more than 5%. The company's yearly revenue growth rate of 37.67% surpassed its three-year CAGR of 25.94%. The stock returned 286.53 percent over three years, compared to 68.61 percent for the Nifty 100.

Parameter	Values
Market Cap (Rs. in Cr.)	42695.00
Earning Per Share (EPS TTM) (Rs.)	50.81
Price To Earnings (P/E) Ratio	55.38
Book Value Per Share (Rs.)	327.04
Price/Book (MRQ)	8.60
Price/Earning (TTM)	45.64
ROCE (%)	21.63
PAT Margin	16.81
Dividend Yield	0.18