Introduction
PI Industries is an integral player in its sector, and its financial trajectory demonstrates the complexities of the economic landscape it operates within. From increasing revenues to changes in profitability margins, the company exhibits a tale of growth, with some reservations.
Industry Analysis
While the specific industry isn't mentioned, PI Industries' financial metrics suggest it competes in a sector that has seen growth in recent years, evident from the increasing total revenue and income. The company has managed to stay ahead and leverage opportunities, as demonstrated by its growing EPS and CEPS.
Historic Performance
Over the past five years, PI Industries has seen an overall uptrend in both revenue and net profit margins. This growth trajectory, particularly in total income, which has been increasing at an average rate of 22.16% over the past five years, illustrates the company's strong market position and operational efficiency.
P/E Ratio Analysis
With a current P/E ratio of 40.5, PI Industries is priced higher than the industry's average. This might suggest that investors expect higher growth from PI Industries in the future or the stock could be overvalued.
D/E Ratio Analysis
With a D/E ratio of 0, PI Industries operates without leveraging any debt, indicating a strong financial stability.
Quick Ratio Analysis
A quick ratio of 3.53 signifies that PI Industries has a strong liquidity position, and can cover its short-term obligations with ease.
ROE Analysis
The current ROE stands at 19.09%, suggesting that the company is effectively generating profit from its shareholders' equity.
Net Profit Margin Analysis
Despite minor fluctuations, the net profit margin has increased from 14.35% in 2019 to 19.32% in 2023. The five-year average at 16% indicates a consistent profitability trend. The net profit margin saw a dip in 2020 by -6.76%, but recovered strongly with a growth of 25.64% in 2021.
Total Income Analysis
The total income of the company has consistently grown from ₹2,900.90 in 2019 to ₹6,429.30 in 2023. The growth rate of total income has been consistent, with the most significant rise of 30.85% in 2021.
Total Revenue Analysis
Total revenue growth mirrors the total income growth, escalating from ₹2840.90 in 2019 to ₹6270.40 in 2023. Revenue growth percentages have been healthy, indicating the company's persistent market demand.
EPS Analysis
The EPS has exhibited substantial growth from ₹29.56 in 2019 to ₹79.84 in 2023, showcasing the company's increasing profitability on a per-share basis. Notably, the EPS saw a massive 51.59% growth in 2021.
CEPS Analysis
CEPS growth is commendable as well, moving from ₹36.25 in 2019 to ₹94.28 in 2023. The increase in CEPS by 40.76% in 2023 emphasizes the company's growing cash profitability.
Interest Payments Analysis
Interest payments surged in 2021 to ₹28.10 but reduced significantly in 2022, suggesting a potential reduction in borrowings or renegotiated terms.
Interest Payments to Total Income
This ratio has remained relatively consistent, emphasizing the manageable nature of their interest obligations.
Total Income to Expenditure Analysis
The ratio indicates an improvement in the company's efficiency, rising from 1.28 in 2019 to 1.34 in 2023.
Return on Net Worth/Equity Analysis
A sharp drop is observed from 2019's 90.33% to 0.79% in 2023, indicating potential concerns in the company's use of equity. The five-year average at 46.92% is commendable but needs scrutiny considering the recent drop.
ROCE Analysis
ROCE has seen growth from 9.95% in 2019 to 10.21% in 2023, suggesting efficient capital utilization. The average ROCE over the five years stands at 8.61%, showing consistent capital employment.
ROA Analysis
ROA has improved from 4.53% in 2019 to 4.96% in 2023, displaying better asset utilization. The five-year average ROA is at 4.15%.
Financial Health Summary
PI Industries has demonstrated growth and profitability. Its no-debt status combined with increasing revenues, consistent net profit margins, and impressive EPS and CEPS growth all point to a strong financial health. However, the sharp decline in Return on Net Worth/Equity needs investigation.
Stock Rating
Considering the overall performance, growth prospects, and potential concerns, PI Industries receives a rating of 8.5/10
PI Industries is an integral player in its sector, and its financial trajectory demonstrates the complexities of the economic landscape it operates within. From increasing revenues to changes in profitability margins, the company exhibits a tale of growth, with some reservations.
Industry Analysis
While the specific industry isn't mentioned, PI Industries' financial metrics suggest it competes in a sector that has seen growth in recent years, evident from the increasing total revenue and income. The company has managed to stay ahead and leverage opportunities, as demonstrated by its growing EPS and CEPS.
Historic Performance
Over the past five years, PI Industries has seen an overall uptrend in both revenue and net profit margins. This growth trajectory, particularly in total income, which has been increasing at an average rate of 22.16% over the past five years, illustrates the company's strong market position and operational efficiency.
P/E Ratio Analysis
With a current P/E ratio of 40.5, PI Industries is priced higher than the industry's average. This might suggest that investors expect higher growth from PI Industries in the future or the stock could be overvalued.
D/E Ratio Analysis
With a D/E ratio of 0, PI Industries operates without leveraging any debt, indicating a strong financial stability.
Quick Ratio Analysis
A quick ratio of 3.53 signifies that PI Industries has a strong liquidity position, and can cover its short-term obligations with ease.
ROE Analysis
The current ROE stands at 19.09%, suggesting that the company is effectively generating profit from its shareholders' equity.
Net Profit Margin Analysis
Despite minor fluctuations, the net profit margin has increased from 14.35% in 2019 to 19.32% in 2023. The five-year average at 16% indicates a consistent profitability trend. The net profit margin saw a dip in 2020 by -6.76%, but recovered strongly with a growth of 25.64% in 2021.
Total Income Analysis
The total income of the company has consistently grown from ₹2,900.90 in 2019 to ₹6,429.30 in 2023. The growth rate of total income has been consistent, with the most significant rise of 30.85% in 2021.
Total Revenue Analysis
Total revenue growth mirrors the total income growth, escalating from ₹2840.90 in 2019 to ₹6270.40 in 2023. Revenue growth percentages have been healthy, indicating the company's persistent market demand.
EPS Analysis
The EPS has exhibited substantial growth from ₹29.56 in 2019 to ₹79.84 in 2023, showcasing the company's increasing profitability on a per-share basis. Notably, the EPS saw a massive 51.59% growth in 2021.
CEPS Analysis
CEPS growth is commendable as well, moving from ₹36.25 in 2019 to ₹94.28 in 2023. The increase in CEPS by 40.76% in 2023 emphasizes the company's growing cash profitability.
Interest Payments Analysis
Interest payments surged in 2021 to ₹28.10 but reduced significantly in 2022, suggesting a potential reduction in borrowings or renegotiated terms.
Interest Payments to Total Income
This ratio has remained relatively consistent, emphasizing the manageable nature of their interest obligations.
Total Income to Expenditure Analysis
The ratio indicates an improvement in the company's efficiency, rising from 1.28 in 2019 to 1.34 in 2023.
Return on Net Worth/Equity Analysis
A sharp drop is observed from 2019's 90.33% to 0.79% in 2023, indicating potential concerns in the company's use of equity. The five-year average at 46.92% is commendable but needs scrutiny considering the recent drop.
ROCE Analysis
ROCE has seen growth from 9.95% in 2019 to 10.21% in 2023, suggesting efficient capital utilization. The average ROCE over the five years stands at 8.61%, showing consistent capital employment.
ROA Analysis
ROA has improved from 4.53% in 2019 to 4.96% in 2023, displaying better asset utilization. The five-year average ROA is at 4.15%.
Financial Health Summary
PI Industries has demonstrated growth and profitability. Its no-debt status combined with increasing revenues, consistent net profit margins, and impressive EPS and CEPS growth all point to a strong financial health. However, the sharp decline in Return on Net Worth/Equity needs investigation.
Stock Rating
Considering the overall performance, growth prospects, and potential concerns, PI Industries receives a rating of 8.5/10