P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways- View

M

maheshi

Active Member
#32
#32
Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-

Finally FII get interested in PI Industries.... yesterday COPTHALL MAURITIUS (belonging to Deutsche Bank) has taken a 2.5 % stake in PI at around Rs. 1075....

The total value comes to around Rs. 33 cr. for a 2.5 % stake.... more FII deals may follow soon to acquire the remaining 6 % odd stake of Rowanhill.... Sign of some positive inorganic moves or other positive development on cards and our expectation of FY12 being the blockbuster year for PI might come true....

Now the real rerating and valuation discovery phase (the scarcity premium) of PI which makes the current rate look history should start and it should be very fast if markets support..... Remember Std. Chtd. PE will surely make an exit out of it in FY13 or FY14 and before that markets and market constituents need to get convinced of Pi story....

Rgds.
 
M

maheshi

Active Member
#33
#33
Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-

Sequoia Capital (via its arm Ironwood) acquires almost 2.5 % stake in PI Industries at Rs. 528-530 (pre split - Rs. 1056-1060) by spending almost 32 cr...


An entry of a strong VC fund like Sequoia which has a glorious track record of picking right companies and attaining mulifold returns on its investments augurs very well for PI as a company as also its shareholders and to enter at this rate (Rs. 528 post split) signifies the gross undervaluation of PI vis-a-vis its prospect......


To reiterate, many positive developments seem round the corner for PI and FY12 seems to be a blockbuster year for PI as expected........Markets have now gradually started realising the potential of derisked business model of PI and once Rowanhill's entire stake gets absorbed (3.5-4 % must be remaining) and the apetite doesen't subside, there should be me-first attitude which should rerate PI to a significant level and make the current rate a history.....

Rgds.
 
M

maheshi

Active Member
#34
#34
Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-

Published on Mon, Aug 22, 2011 at 09:45

PI Industries has target of Rs 750, says Investment Advisor, SP
Tulsian.


Tulsian told CNBC-TV18, "PI Industries is into agrochemical, specialty
chemical, agri inputs like seeds and all that. The performance of this
company has been quite good for FY11. The company has recently gone
for stock split."


He further added, "They have three plants, one in Udaipur, one in
Ankleshwar, and one in Jammu. Recently if you see the Q1 results
though the Q1 results of FY12 includes the sale of some Rs 30 crore
odd gain, which they have done of the polymer compounding business
because that was unrelated to their core business, so they knocked it
off and made a gain of Rs 30 crore on that. But even if I take the net
of tax liability, the company has posted a PAT of close to about Rs 48
crore for first quarter on a lower equity base of Rs 12.5 crore."


"If you see traditionally Q2, Q3 and Q4 are always the best quarter
for the company. Infact Q1 is the lean - least among all the four
quarters for this company and this company has been steadily growing
up their R&D and distribution network, probably these two are the
strength of this company and that is why they have entered into an
R&D. They have set up R&D center in joint collaboration with Sony
Corporation, which has been recently setup and they will be ramping it
up over the next couple of years and they have recently entered into a
distribution agreement with an MNC also for distribution of agro
chemicals."


"So taking all these into consideration I am expecting that company
should be able to post an EPS of close to Rs 42-44 for FY12 on a
recently reduced face value of Rs 5 and I find tremendous value in
this stock because talking the positive view on the agri inputs
company and specifically on this stock if somebody can keep a view of
about one year, they should be able to see a price target of Rs 750."


Rgds.
 
M

maheshi

Active Member
#36
#36
Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-

Agreed Prakash....but we need to go deep into the grassroots to see what is happening.....

The analysts which often come on Business Channels often miss the ultra-fine details of the company and just recommend after doing just top of the line homework based on the feelers that they receive from markets ( in PI's case it must be entry of Deutsche Bank & Sequoia Capital in the company)... This they do mostly because of popularising themselves in general public and gaining short-term profits out of trading....... However, such methods can't work for too long as ultimately its the fundamentals that will drive the stock price in the medium to long run....

Now, in case of PI Ind., we can again see how less of the homework was done by the analyst of concern which is evident from the fact that he was not able to highlight the potential of CSM business (340 mn. USD order-book) of PI and recommended it based on Agri-input segment and Sony collaboration which is actually going to bear fruits few years down the line.....Having said these, we can't ignore the fact that PI Ind. is a strong company with great visibility of growth and the target price that the analyst has put is much lesser then the company's fundamentals deserve....This I am not saying only now but am saying it repeatedly since last 6 months or so when PI was trading at a lower rate and no analyst had recommended it....

What I basically want to say is we can take analysts opinion to gain ideas because of the ground level contacts and presence they have but after having the idea we need to go deep into the concerned company to assess the real potential of the company....We need to build conviction ourselves to pin-point our entry and exit points for a company and we should not go atall after anybody and invest blindly as if we do like that it is only we are to blame and nobody else....

This is the basic reason why I am putting my detailed analysis on each company I track for all to see and invite their views so that maximum people can get benefited.... Its only by sharing each of us's perspective that we will collectively reach to a logical conclusion and benefit collectively...

If you or anybody has any queries on PI Ind. or Solar Ind., or for that matter any company on which I have placed detailed analysis report on this forum, do feel free to ask and I will try my best to reply with utmost of my ability... I still maintain that PI Ind. is the safest investment opportunity in current uncertain markets followed by Solar Industries...

Rgds.
 
S

shinchan

Well-Known Member
#37
#37
Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-

Thank you Maheshi for your efforts.:thumb:
 
M

maheshi

Active Member
#38
#38
Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-

PIs R&D facility receives GLP Certification

New Delhi, September 19, 2011: PI Industries Limited (PI), a leading Indian Agri-Input, Custom Synthesis Company announced that its R&D facility at Udaipur has been accredited for Good laboratory Practices (GLP) and Norms on OECD Principles by National GLP Monitoring Authority (NGCMA), Government of India in the field of Physical Chemical Testing. Good Laboratory Practice (GLP) refers to a quality system of management controls for research labs to ensure the uniformity, consistency, reliability, reproducibility, quality and integrity of the tests conducted therein. PIs certification follows the grant of full membership to India as an OECD member country. Hence, the physical / chemistry related data generated in PIs GLP accredited lab would now be acceptable by the registration authorities (agrochemicals/pharma etc.) in all the OECD countries such as USA, Europe, Japan etc. The GLP certification meets PIs strategy to provide comprehensive solutions under one roof and broadens its portfolio of custom synthesis and manufacturing solutions to cover chemical process research, molecule development, analytical method development, synthesis of high purity / impurities of chemical entities for analytical reference standards, 5 batch analysis under GLP conditions, scale up studies, process / plant engineering and commercial scale production. PIs R&D & QC labs are already ISO-17025 accredited, which attests to their consistent reliability of the tests and calibrations performed in these labs, and have a documented quality management system.

Commenting on the development Mr. Salil Singhal, Chairman, PI Industries Ltd., said: Iam immensely pleased that our R&D facility has received GLP accredition. This certification is another significant milestone in our commitment to strategically partner with our global clients and support them across all the phases of product development and commercialization. For PI, an organization inspired by science, this not only helps PI to grow its business opportunities, but also adds to the reputation of its products and personnel.
 
M

maheshi

Active Member
#39
#39
Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-

My Q2FY12 Estimate for PI Industries (Consolidated) :





Total Revenue = INR 245 - 270 cr. (Q2FY11 - 186.97 cr.)



EBITDA = INR 45.3 – 49.8 cr. (Q2FY11 - 34.38 cr.)







Breakup of Revenues – Segmentwise





Agri Input = INR 185 - 198 cr. (Q2FY11 – 140 cr.)



CSM = INR 60-72 cr. (Q2FY11 – 33.5 cr.)
 
M

maheshi

Active Member
#40
#40
Re: P.I. Industries (1100 cr. Order-Book + Unique Bus.Model)- Concall Key Takeaways-

Rallis declared Q2FY12 results yesterday... Sales grew 18 % with an EBITDA growth of 10 %..



Rgds.
 
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