P I Industries Ltd. (PI) ` 538 (14/12/12) BUY

P I Industries Ltd.TMBSE SENSEX/S & P NIFTY 19317.25/5879.60SectorAgrochemicalsMarket Cap./Free Float (` Crs.) 1347.15/484.97Market Price as on 14/12/12 ` (FV ` 5/-) 53852 Week High/Low ` 595.25/424.00Equity Shares Outstanding (in Crs.) 2.504P/E Ratio (Times) (for FY ‘12) 15.91P/B (Times) (for FY '12) 4.2EV/EBITDA (Times) (FY ‘12) 10.9ROE % (FY ‘12) 26.7Shareholding Pattern as onSep ‘12 (%)Highlightsu Apart from selling its own products in Agri inputs,Company in-licenses and co- markets products of MNCs inthe domestic market, which firms about 48% of domesticrevenues.u The CSM exports continues to grow at a brisk pace.At any given point in time PI has about 25-30 product attheir initial research stage, which is representative of thepotential upside in business. Currently, there are over adozen products that have reached the commercializationstage. Order pipeline for existing products is very strongand consists primarily of multi-year orders with protectionagainst currency fluctuation and raw material pricing builtin.u The new manufacturing facility at Jambusar (Gujarat),is expected to commence operations in third quarter of FY’13. The facility will give additional capacities to the Companyto service its growing order book and also offer various taxbenefits as it has been set up in SEZ.Share Price Performanceu Company expects to introduce 2/3 products in CSMbusiness during 2H of FY ’13. In agri inputs, 1 new in-licensedproduct will be introduced during FY ’14.u Debt Equity ratio of the Company has improved from1.24 x in FY ’11 to 0.82 x in FY ’12 as a result of issue of equityshares on conversion of preference shares and debentures atpremium.P I Industries Ltd.is also available on www.balance-equity.co.in