Jefferies has maintained its buy rating on PI Industries and raised the target price to ₹4,315 from ₹4,200, highlighting strong growth in new molecules as a positive sign for the company’s medium-term prospects. However, the brokerage noted that a drag from one of its key products is expected to weigh on FY26 performance.
Management has maintained its guidance for mid-single digit growth in FY26, with expectations of an improvement in the second half of the year as new products continue to ramp up. Jefferies expects double-digit growth to return in FY27 as these launches scale further, supported by the company’s innovation pipeline and global client relationships. It added that the stock currently trades at a 10% discount to its long-term average valuation, providing a potential entry point for investors. The brokerage has trimmed its FY26 and FY27 profit estimates by 3% to reflect near-term headwinds but remains constructive on the long-term growth story.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.