chemicals

PI Industries

PIIND · Nifty 50

₹2,835.2

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionchemicals sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score65/100 (ADEQUATE). 1 positive flags, 3 concerns.

Historical Context60 similar technical setups. Average outcome: -7.1% decline. 0% positive.

Fundamental

65/100

ADEQUATE

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

PI Industries scores 65/100 on fundamentals (adequate). PI Industries: BROAD EXPANSION regime.

Fundamental Score: 65/100 · ADEQUATE · 2 signals detected

DuPont Analysis

ROE 11.8% broken into three drivers. Each shows how efficiently the company generates returns.

ROE11.8%=

19.7%Net Margin

0.5xTurnover

1.2xLeverage

ROE of 11.76% is moderate margin-driven and stable. Net margin of 19.7% × asset turnover of 0.5x × leverage of 1.2x.

What This Means

Net margin of 19.7% means the company keeps ₹19.7 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.50x means the company efficiently uses its assets to generate revenue. Leverage of 1.2x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

57.8%

Operating

25.5%

Net

19.7%

declining

Gross margin 57.8% → operating margin 25.5% → net margin 19.7%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

WEAK

Cash flow only covers 0.4x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

COMFORTABLE

Interest covered 104.4x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin negative at -9.6% — spending more than earning. Check capex cycle.

Peer Comparison

PI Industries is compared against 10 peers in the chemicals sector.

AARTIIND ASTRAL ATUL CHAMBLFERT COROMANDEL DEEPAKFERT HSCL NAVINFLUOR PCBL PIDILITIND

Key Watchpoints

🟢

Breaks above ₹2977 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹2693 (-5%)

Further downside risk

🟢

Chemicals sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (85.9%) than equity (10.6%)

⚠️ Low Earnings Quality: Cash flow only 0.4x earnings — weak cash conversion

Risk Flags

🔴 2 Critical⚠️ 1 Warning✅ 1 Positive4 total flags

🔴Cash covers only 16% of current liabilities

Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Operating cash flow significantly below net income

Cash Flow

OCF is only 0.4x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Working capital changes are 199% of operating cash flow

Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

✅Receivables decreasing — 7.6% of revenue

Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

✅ Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio

32.2UNAVAILABLE

P/B Ratio

3.8HIGH

Market Cap

₹4310950.5L CrHIGH

From 52W High

65% of high

Sector Peers

← All Stocks Market GPS Daily Brief chemicals Sector