PI continues delivering extraordinary results, given the pain across the agchem sector. Sales grew by 17.6%. and EPS by 27.5%. New products are driving near term growth and they continue investing in longer term growth drivers (electronic chemicals, pharma, process efficiency). Concall notes below.

FY24Q3

• PI now in top 3 agchem CSM companies globally, their results are superior to peers due to focus on early stage patented

• 60%+ growth in Q3 was from new products (commercialized in last 3 years) – agchem CSM grew by 13%

• One time higher 3% higher EBITDA margins due to recovery of theft material (41 cr. inventory, sale price was 70 cr.; 41% gross margins)

• Sustainable EBITDA margin is 25-26%

• Non-agchem should contribute 20-25% revenues in 4-5 years

• 9MFY24 Capex : 900 cr. including pharma acquired assets of 497 cr. Will continue incurring 600-800 cr. organic capex (expected asset turns: 2-2.25x)

• Pyroxasulfone : formulation has seen 10-15% price erosion (not technical). Formulation market size is $600-700mn

• R&D

  • Pipeline : 50 new molecules

  • Nonagchem share in new enquiries have grown to 30%

  • 800+ scientists, filed 155 patents

• Domestic

  • Launches : 5 in 9MFY24 (CLARET for paddy, patented herbicide EKETSU for rice, fungicide KADETT for soyabean and groundnut, Bio-fungicide PIILIN for grapes and Chili)

  • Focused on product mix rather than volumes

  • Biological and bionutrients : Portfolio of 8 products, 2 are entrenched over 2 decades. Launched a new brand AMINOGROW

Disclosure: Invested (position size here, bought shares in last-30 days)

they mentioned UP based co.s to have. Higher production by 6-7% where as co. Based in South (including Maharashtra) seeing production decline of nearly 2-3%. And on other side they degraded Balrampur chini… there analysis were not that much clear…

RE has been allotted. Funds debited from my bank.

Is anyone tracking this stock closely and can share their thesis. Bought it as swing trade in the October crash and held onto it since the Pharma sector seems to be the new hot sector