PI Industries (PI) remains confident on achieving growth guidance of 18-20% YoY for FY23 in both exports and domestic segment (supported by lower base of last year). This is due to the fact that  remunerative commodity prices bode well for domestic market. However, delayed monsoons have an impact on placements. PI Industries is set to launch 5-6 products in domestic market in FY23. CSM business continues to be the shop stopper with mix changing to 80:20 for Agri and non-agri, going forward and Pharma acquisition still in evaluation stages; likely to be done in next couple of quarters.

Going forward, PI remains confident on the core business and its growth guidance with margins likely to improve from current levels, primarily led by strong enquiries in CSM business and new launches in domestic segment. We believe, the stock has corrected ~35% from its recent highs, thus providing a good entry point with strong earnings visibility in its core business.

CSM to continue as the show stopper: CSM order book stood at USD1.4bn as on Mar-22. PI commercialized 9 new molecules during FY22, while 6-7 more products are planned to be commercialized in FY23. PI has more than 40 products at different stages of scale up in the CSM segment. Further, R&D pipeline has more than 20% products from non-agrochemical segment.

Delayed monsoons impacting placements in domestic market: 1Q generally happens to be placement season; while actual consumption takes place in 2Q for domestic agrochemicals industry. However, due to delayed monsoons there has been certainly some impact in terms of product placements.

Additionally, competition has aggressively placed few molecules in the market in 4QFY22; leaving limited room for further inventory push. Going forward, the company remains confident of decent performance in domestic business primarily led by a) expectations of better acreages across crops and b) remunerative crop prices.

PI has been aggressively pursuing horticulture under 'Jivagro' brand- launched 13 new products in FY22; while 5 new innovative products are to be launched in FY23 which will support segment's growth.