Near-term headwinds for PI Industries

Growth could pick up in FY19 on recovery in exports, new product launches

PI Industries gained about 17 per cent over the last month on positive growth commentary from the management and brokerage upgrades. Some analysts have revised their estimates for FY19 as they expect growth to be driven by new product launches, higher growth from its foray into the pharma space, and recovery in the custom synthesis space.

The company reported an eight per cent fall in revenues year-on-year (y-o-y) in the first half of the year due to softness in exports, uneven rainfall distribution in the kharif season, and transition to the goods and services tax (GST) regime. Despite the muted first