Edelweiss' research report on PI Industries
PI Industries (PI) reported a below estimate quarter (Revenue/PAT 14%/24% below estimate) driven by sharp miss in the CSM segment due to deferment of an order. However, domestic segment��s growth at 10% surpassed estimate on new product launches. Outlook for this segment has improved even further with more new product launches and management guiding for 18% growth in FY19��among the highest in the industry.
Outlook
Given the traction, we have also adjusted our revenue growth expectation for FY19 higher from 8% to 12%. However, factoring in the lower margin guidance, we cut FY19/20E EPS 8%/5%. We value PI at FY20E target P/E of 25.0x, leading to TP of INR954. We maintain ��BUY��.
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