PI Industries a top idea from Sharekhan stable: Hemang Jani

In a chat with ET Now, Hemang Jani, Senior VP, Sharekhan, says over next 2-3 years, the company's topline growth is going to be about 22-24 per cent



ET Now: What is the top idea? Amongst the names that we have discussed today or have not discussed as yet, what is the top idea from the Sharekhan stable currently?



Hemang Jani: See one midcap company that we like at this point of time is PI Industries. It is an agrochemical company. They came out with numbers. Top line growth was not that great but what we like about this company is that they have a much better and a differentiated business model where they enter into some kind of tie-up with global majors and because of the strong manufacturing and research capabilities, they get the contracts for long term where you have about 20 per cent margin and about 20-25 per cent kind of top line growth. It is a zero debt company with very high return ratio. So we believe that though this quarterly numbers per se were not great. Overall, with the Rs 300 crore investment in their Jambusar plant, the topline growth is going to be about 22-24 per cent over the next two to three years, so we think that this can give you an upside to about 800 from one year perspective.