Originally posted by tejas.k thanks hit ji. makes sense.however if you look at the sector (fertilizers and stuff), the P/E is very low. even cormandal international is at 13..  i would love to hear you views on this. because they say, sectoral p/e is also very important.  i am not an expert like you. so i want to know you your views. in fact i have the same concern with vst tillers. (although in a different sector)

PI Inds is very far away from fertiliser sector. To begin with there is no govt regulatory control in the space in which PI operates. The closest similarity in Indian markets I found for PI is Divi's labs(esp for the custom synthesis business which is going to be the growth and margin driver for PI ). You can compare valuations with Divi's labs if at all you want to compare. If I recall correctly Divis trades at 25 times trailing earnings.

PI is a company with two main divisions -- agrichem and custom synthesis. To understand the things with a better perspective you can go through the Annual Reports available at company website or on bse. I have a physical copy and just a few days back went through and the management has done a great job of explaining their business and prospects of both businesses they operate in.

hitbhai PI Industries on 23/4/2011 has made allotment of 3,11,658 equity shares of Rs 10 each to Standard Chartered Private Equity(Mauritius)and Standard Chartered Private Equity(Mauritius)II upon conversion of 8,10,000 compulsorely convertible preference shares of Rs 100 each held by them."

what does this mean at 100 rs.? is this has anything to do with cmp@930+

thanks

Edited by shadows - 26/Jul/2011 at 8:04am

PI Industries on fire!! 

Another Hit from Hiteshbhai