Near-term concerns likely to weigh on growth trajectory of PI Industries

PI Industries stock has fallen 18 per cent since August on weak Q1 results, muted export outlook and biologics curbs, though brokerages remain positive on long-term growth

The stock of agrichemicals company PI Industries is down 18 per cent since August and is trading at six month lows. The correction in the stock (current price of Rs 3,491) was due to the company’s weak performance in the June quarter (Q1) and muted near-term outlook for the export market, where global customers are destocking.

 

Alongside, regulatory headwinds in the domestic biologics segment dented PI’s Q1 performance and is expected to weigh on growth in Q2 as well. Despite correcting, the stock is trading above the sector average offering and offers little upside from current levels.

 

PI’s revenues declined