Jefferies has reiterated its Buy call on PI Industries but revised the target price to ₹4,865 from ₹5,100, citing lower growth expectations. The cut follows updated guidance from PI’s partner Kumiai, which forecasted a 7% YoY decline in pyroxasulfone sales due to elevated inventories.
Despite near-term challenges, PI Industries remains optimistic about growth, driven by new product launches slated for FY26. The management expects softening raw material prices to shield margins, ensuring stability in operating performance.
Jefferies has revised down FY26/27 revenue estimates by 3-5%, leading to an EPS reduction of 4-5% for the same period. However, it still projects a 10% EPS CAGR over FY24-27, supported by a strong pipeline of agrochemical innovations and continued market leadership.
The brokerage emphasized that PI’s focus on margin preservation and consistent product diversification positions the company well for long-term growth, making it an attractive investment despite short-term headwinds.
