Sharekhan Maintains Buy On Midcap Chemicals Stock For 29% Gains, 550% Final Dividend

Brokerage firm Sharekhan initiates Buy on PI Industries Ltd. with a target price of Rs. 4,200 apiece. The brokerage firm, with the given target price, sees a decent upside of 29% from its current market price.

The stock in its Board meeting held on May 18, 2023, recommended a final dividend of Rs. 5.5 per equity share i.e. 550% for the financial year ended March 31, 2023.

PI Industries is a Chemicals sector midcap stock having a target price of Rs. 49,677.06 crore.

Declaration of Final Dividend for the financial year 2022-23

The Board of Directors of PI Industries Ltd., in a regulatory filing said, "The Board of Directors of the Company at their meeting held today i.e. May 18, 2023 have recommended a final dividend of Rs. 5.5/- per equity share i.e. 550% for the financial year ended March 31, 2023, subject to the approval of the Shareholders at the forthcoming Annual General Meeting."

It added, "The total dividend for the year (including interim of Rs.4.5/- per equity share paid during the year) would be Rs. 10/- per equity share of Re.1/- each. The dividend, if approved, by the Shareholders will be credited/ dispatched within 30 days from the date of Annual General Meeting i.e. on or before September 15, 2023."

It further added, "Further, record date for the purpose of final dividend is August 11, 2023."

Valuation - Maintain Buy on PI with an unchanged PT of Rs. 4,200

According to Sharekhan, PI's pharma foray would diversify its earnings stream and drive medium to long-term growth for the company. Even after recent acquisitions, PI would has a strong net cash position of Rs. 2,304 crores to pursue both organic and inorganic growth opportunities.

"We expect PI's revenue/EBITDA/PAT to post a strong CAGR of 20%/19%/19% over FY2023-FY2025E, led by robust CSM order book of $1.8 billion and ramp-up of nine new products commercialised in the last one year. Growth would further improve post integration of TRM and Archimica's acquisition," the brokerage has said.

It added, "We maintain a Buy rating on PI with an unchanged PT of Rs. 4,200. At CMP, the stock trades at 33.7x its FY2024E EPS and 29.1x its FY2025E EPS."

Stock Outlook - Current Market Price, 52 Week Low/High, Returns

On Friday, the stock closed 0.56% higher at Rs. 3,274.30 apiece. Its 52 week high is Rs. 3,698.45 apiece and 52-week low is Rs. 2,442.10 apiece, respectively.

It falls 3.74% in the past 1 week and gains 3.83% in the past 1 month. It gave 22.79% positive return in 1 year. In 3 years, it gave 122.18% positive return. In 5 years, it gave 279.83% positive return.

Disclaimer - The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.