Indian equities have been on a recovering trend since the beginning of April after a two-month long subdued activity in February and March on the jitters of global sell-off, India’s biggest banking scam unwinding at PNB and coupled downturn due to LTCG over Rs 1 lakh on equity and equity-oriented mutual being taxed at 10% without the benefit of indexation. Following the extended stretch of pessimism wave, Sensex dropped more than 10% from the all-time highs achieved on 29 January 2018. The S&P BSE Sensex shed as much as 10.16% to 32,596.54 (23 March 2018) from the lifetime peak of 36,283.25 (29 January 2018).
Over the course of last 6 to 7 years, the domestic markets have relatively well as compared to the regional Asian peers as far as China is concerned. In the meantime, many stocks have doubled, tripled, quadrupled the money. The 30-share barometer Sensex had risen more than 100% in the span of the last six-and-half-year to a level 34,500 from a level of 16,900 (early-November 2011). We bring to you a large-cap agriculture stock which has returned more than 770% in the last 77 months of time to invest your money and earn up to 23%.
Shares of PI Industries have surged nearly 800% in the last six-and-half-months. The stock of PI Industries Ltd has advanced as much as 798.7% to Rs 865.45 from a share price level of Rs 96.3 as on 25 November 2011. The share price of PI Industries have been adjusted to the corporate actions which include bonus issues in ratio 1:1 and 1:2 in 2008 and 2010, a rights issue in a ratio of 1:1 followed by successive stock splits in ratio 1:2 and 1:5 in the years 2011 and 2013.
The research and brokerage firm Motilal Oswal Securities has given a buy rating to the share of PI Industries with a target price of Rs 1,061 which implies an upside of 22.6% from the current market price of Rs 865.45. “We expect revenue to grow 5.6% YoY to Rs 6,392 million, aided by growth of 7% in agri-input business and 5% in CSM business, Motilal Oswal Securities said in a report. We estimate 110 basis points margin contraction to 24.3% and expect EBITDA to remain flat at Rs 1,553 million, Motilal Oswal Securities added.
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