Shares of agrochemical manufacturer PI Industries soared 6.7 percent on NSE during the early trade on Thursday, February 16, after the company reported a 58.04 percent increase in the net profit at ₹351.80 crore for the December quarter, surpassing analyst estimates.
During Thursday’s trade, the stock opened at a price of Rs. 3,154.50 per share, against the previous close of Rs. 3,121.95 per share, and rallied further to touch an intraday high of Rs. 3,334.
The growth in the net profit was supported by EBITDA growth despite higher depreciation. EBITDA grew 40 percent YoY to ₹415.6 crore during the quarter that ended December 2022.
The stock was trading at ₹3,326.10 apiece, up by 6.54 percent, at 11:05 a.m. on the NSE.
The stock touched a 52-week high of Rs. 3,698.45 on November 03, 2022 and a 52-week low of Rs. 2,351.30 on March 07, 2022, indicating that at the current level, the stock is trading over 41 percent above its 52-week low and just 10 percent below its 52-week high.
The stock has grown nearly 3 percent in the last one month. It has increased by almost 28 percent in the previous one year. Furthermore, in the past five years, it has gained 282 percent.
On Tuesday, the chemical company informed that it recorded a 23 percent growth in exports led by volume growth of 9 percent. Domestic business registered 2 percent YoY growth, impacted by adverse weather condition coupled with higher channel inventory.
During 9 months of FY23, the company's consolidated net profit jumped 48.4 percent to ₹949 crore with a 26.2 percent increase in net sales to ₹4,926.40 crore.
The company announced that it has commercialized three new products for the exports market, with an order book of $1.8 billion.
The company also said that it has a strong pipeline of products in the domestic market at different stages of development and expects commodity prices to remain robust due to rising global demand.
In addition, PI Industries is planning to expand capacities for its exports business.
Founded in 1946, PI Industries works with a unique business model across the Agrochem value chain from R&D to distribution, providing innovative solutions by partnering with the best. Known for its technological capabilities in chemistry/ engineering related services, it has built leading brands over the last 75 years and connected with more than 70,000 retail points pan India, the company’s website shows.
According to a Mintgenie poll, 25 analysts on an average have a ‘BUY’ call on the stock.