PI Industries Q1 Results: Management maintains 18-20% growth guidance despite inventory glut, price cuts

However, the company is facing no significant challenges in export products, though a few products are showing some challenges.

Despite these challenges, the company has maintained its revenue growth guidance of 18-20 percent per annum.

The company, which is into diversified businesses of agri inputs, fine chemicals and contract research and manufacturing services, polymers and engineering services, plans to double pharma revenue in the next 3-4 years with margins of 20-24 percent. The company expects pharma margins to be between 14-15 percent in the current financial year.

PI Industries also plans to launch a total of four new products in the current financial year in the domestic market. It also mentioned that the company will continue to make certain investments in good opportunities.

Following the management commentary, analysts maintained their earnings outlook on the company.

Brokerage firm Jefferies assigned a buy rating on PI Industries with a price target of Rs 4,430, implying a potential upside of 14 percent. The brokerage also raised its financial year 2024-2026 earnings estimate by 1-6 percent on a better margin outlook.

HSBC also assigned an overweight rating on PI Industries and increased its price target to Rs 4,300, implying potential upside of 11 percent in the next 12 months.

HSBC maintained its outlook with caution on the company for the current financial year. It believes that robust cash generation & solid balance sheet provides foundation for growth.

The agrochemicals major reported a 23.8 percent growth in total revenue to Rs 1,910.4 crore for the April-June quarter compared to Rs 1,543 crore in the year-ago period. A CNBC-TV18 poll predicted revenue of Rs 1,803 crore for the quarter.

Shares of PI Industries are trading little changed at Rs 3,881. The stock is up nearly 14 percent on the year-to-date basis.