Citi has maintained its buy rating on PI Industries with a target price of ₹4,350 per share after its key customer, Kumiai Chemical Industry, revised its FY25 guidance. Kumiai, which counts PI among its major partners, raised its full-year revenue guidance by around 6%, citing stronger agrochemical sales, but marginally lowered its operating profit outlook due to price adjustments in its product AXEEV (pyroxasulfone).
The brokerage said the revision reflects healthy demand trends in the agrochemical space, which is a positive signal for PI Industries. However, it added that the modest reduction in operating profit guidance — owing to pricing cuts aimed at countering generic competition — warrants monitoring.
Citi stated that the key factor to watch would be whether the price adjustment in AXEEV remains limited to Kumiai’s own operations or also impacts PI’s pyroxasulfone export pricing. Despite the uncertainty, the brokerage remains optimistic on PI Industries’ growth trajectory, supported by its strong customer relationships, R&D strength, and diversified product pipeline.
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