India's PI Industries' single-product dependency big risk for stock - Nuvama
13/12/2023 05:06
** Indian agro chemicals maker PI Industries PIIL.NS down
2.5% at 3,396 rupees, lowest since Nov 6; stock down ~ 12% so
far this week, erased gains made so far this year
** PIIL's dependency on pyroxasulfone, its key product used
to control weeds, is a big overhang on stock, Nuvama analysts
said
** Potential entry of generic players in pyroxasulfone,
recent announcement of Rainbow Agro of China has triggered risk
of increasing competition in pyroxasulfone - brokerage
** Adds co's largest customer of pyroxasulfone, Kumiai
Chemical's 4996.T recent profit warning negative for co
** Nuvama says pyroxasulfone has been facing risk of product
going off patent in key markets of U.S, which could possibly
impact co's profitability
** Brokerage says pyroxasulfone contributes ~56% of export
revenues in FY23 and 60% in H1 for PIIL
(Reporting by Sethuraman NR in Bengaluru)
((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))