13 Feb Fundamentally strong midcap stock to buy in a market correction

Fundamentally strong midcap stock to buy in a market correction

With the current market fall, many quality stocks have corrected heavily from their peak.
It will be a smart decision to add such stocks to your watch list.

If someone is searching for investment opportunities in the stock market right now, The Indian midcap segment can be a good option for 2023.
According to Equitymaster PI Industries is one of them.

Where brokers have been giving Target price: Rs 4,000 on PI Industries Ltd with Stop loss: Rs 2,930

The ‘China plus one strategy has pushed the agrochemical industry in India on the growth track and the union budget 2023 has given a boost to agriculture also.
Being a leading player, PI Industries can be a primary beneficiary of this.

In spite of the uncertainties in macroeconomics and geopolitics, the company continued to outperform. In the September 2022 quarter, the revenue grew by 30% year-on-year (YoY), driven by high volume and price growth, and the net profit grew by 48% YoY.

According to the analysts, PI Industries can grow dramatically for the following reasons
– Continuously launching new products
– Potential pharma acquisition
– Strong order book

Additionally, expecting 20% growth in the CSM business over the next 2-3 years.

About PI Industries Ltd
– Engaged in agrochemical manufacturing and distribution
– Mainly manufactures agrochemicals, plant nutrients and plant protection, speciality fertilizers and hybrid seeds.
– Currently manufacturing insecticides, fungicides, herbicides and many more

World-class research and development (R&D) facility:
– Continuously innovating new products
– Launched 7 new products in last 2 quarters
– Also, 17 new products are under development

Strong CSM order book:
– CSM order book of Rs 180 Crores
– To match growing demand focusing on increasing the capacities of existing products
– Plans to invest a capital of around Rs700 crores in the financial year 2023

Focus on Pharma business:
– Entering into new market segments to de de-risk agrochemical business
– Successfully developed a Covid-19 drug intermediate
– Planning to grow in the pharma sector through acquisitions

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