Let’s not jump to conclusions… Promoters are too smart to “force” a sale. The non reported part of the buy would likely have been distributed to Institutional investors and Hni’s as well. Salil Singhal is In his 7th decade and would have his own motivations, which the market will doubtless query. This thread has sufficient discussion on the quality of Pi’s business which I do not want to regurgitate. The question to ask yourself is this. Would I buy this business at the cmp of 600 plus minus 10 pc; would I be willing to hold it for the next 5 years if the markets were shut. Will this business compound at 20 or plus pc at superior capital return ratios; will the cash generated be deployed keeping in mind the interests of all shareholders; what superior alternatives do I have to grow my invested capital? In case you are unconvinced sell now and sleep well. I’m happy to hold on take decisions based on Business performance.
On an unrelated note, Cartica who came in this June have 3 other investments in India, Page, Eicher and Supreme Ind. As far as I know they are in for the future that they feel this Business has.
The way I look at it, this stock has gone up almost 5 times in last 2 years. To raise 500Cr. 2 years back, the promoters would have to sell 25% of the company and lose control over it. Now they are able to do that selling just 5 odd percentage and keeping their holdings above 50%. It was an opportunity and they took it. So yes the owners behaved opportunistically. However, I would be more worried if Cartica sold than if Salil Singhal sold who is in his 70s. Just my 2 cents.
Entire stake is bought by institutions - name of a few has come out - balance should come (this is my thinking ) . What is wrong if promoters make honest exit at market price that too at 6 month low price that too for philanthropic and family reasons ? they must be applauded for wanting to give back to society.Now as for timing only the promoters will know what is the specific fund requirement for philanthrophy or family reasons but its useless to speculate - Remember 2 things : Promoters sold at Rs.610 which is the latest esop issue price . Secondly advance tax payout is due in 3 days-since no STT would have been paid by them for their initial purchase or acquisition they would need to pay tax on this transaction.Promoters did not behave opportunistically nor in unethical manner but sold a small stake for societal good since the old man is getting old this is laudable and must be complimented as they are doing charity at such a scale without any drum beating
Broaders can lit me on this , as what is happening with kaveri is it possible that government tries to put price control on herbicides and pesticides, and besides this govt doesn’t gives subsidy to farmers and also doesn’t support manrega schemes will this impact on how farmers spend on agrichem ,that in inturn will impact on agri business of pi
I was under the impression that to avail ltcg tax exemption STT need to be paid both on purchase and on sale (in this case not paid on purchase since promoters got these shares much before STT was introduced )
I am not a CA so can not comment with authority, but I myself apply LTCG and STCG on shares purchased in rights and IPOs. In both the cases, we don’t pay STT at the time of purchase. I hope, I have not been doing it wrongly till now.
On 11.12.2015 Salil Singhal sold 88 lac shares of which we know buyer identity for 10 lac shares (India Midcap Fund ) , 9 lac shares (SBI Fund ) , 865808 shares (GMO Fund),950884 shares (Stichting Fund) . This comes to only 3716692 shares leaving a balance of 50.8 lac shares . Now there are 3 "large deals " mentioned in money control without buyer identity on same date - In BSE 2212465 shares at 610 , In nse 99926 shares at 589 and in nse again 100414 shares at 592.55 .
It would be very interesting to find out the mystery HNI buyer for the block of 22.12 lacs shares . If anyone has any info please share .
Setting up of two new plants in Sep and Dec 2015, both at Jambusar, Gujarat, each with an investment of 150 cr, and each intended to serve the CSM needs of a single company (two different customers). The company now has three such dedicated units and is poised to build more.
15-odd CSM clients include global chemical giants and leading innovators such as Bayer AG, BASF SE, DuPont, and Japanese majors Kumiai Chemical Industry and Ihara Chemical Industry.
“Competing on top line is not my approach. Excellence is what I care about. PI Industries’ Price-earnings ratio and operating profit are comparable to those of the top players in the industry and indeed surpass some of them.” ~Mr. Singhal.
Aim at making PI Industries a billion dollar company, but is unwilling to set any time frame for the goal (sensible improvisation over BT Dec 2014 article I think).
Yes this article was interesting. The fact that the two new plants are dedicated to 2 companies is very interesting. It means these are very long term contracts. Also the scope may be enormous with companies like Bayer, BASF and DuPont.
It will be interesting to ask the management who the top players in the industry are.
Excellent insight into the top man’s mind - he is another intelligent fanatic . I find from google finance that Dupont has a pe of 30 and bayer 27.Next year eps of about 29-30 so its time to see the 4 figure mark some time soon (is my thinking ).2 things i read in sharekhan research report - co will be zero debt next year ( current debt is only 115 crs ) + div payout ratio should move up from current 15%
last year q3 trading window closure for insiders was just 1 week till feb 14th - this year for q3 the window starts from tomorrow and goes on till feb 12th (over 50 days ) - this is happening for the first time - que is why ?
Motilal Oswal report on management meet with a buy rating
Salient features of new launch Vibrant:
PI launches ‘Vibrant’—a unique rice-protecting insecticide
PI launched ‘Vibrant’ under the insecticide segment to control pest of rice crop.
Vibrant (Thiocyclam) is a broad-spectrum insecticide for rice treatment and can attack two pests (stem borer and lepidoptera/leaf folder) in a single application. Farmers currently use two insecticides—one each for stem borer and leaf folder.
Theproduct is exclusive (registration u/s 9(3) of CIB) and has an in-licensing arrangement with Japanese MNCNippon Kayaku—PI’s first tie-up with the MNC.The product has undergone four years of development and testing.
Our interactions with the management suggest that the product doesn’t cannibalize any of PI’s existing products
Vibrant—a potential market of INR13b
Ourinteractions withthemanagement suggest that the market opportunity for the product stands at ~INR13b-14b.
The product will be initially launched in Andhra Pradesh followed by Tamil NaduandKarnataka,and then the rest of India. Management highlighted that given the rice sowing season in these states,it is an ideal time for launch.
An acre of farm will require 5 kgs of Vibrant costing INR200/kg,which management believes is comparable to peers’ insecticides warranting more than one spray depending on the product. Management is confident of the product’s high level of efficacy vis-à-vis peers’products,which offer single pest attack.
Some of popular products in the single attack category include Rynaxypyr (price ~INR190/kg) by Du Pont, Cartap (price INR90/kg) and Fibronil by various companies;Vibrant is priced at ~INR200/kg.
While the management highlighted that it is difficult to identify the exact cost savings to farmers, it pointedthat the product’s high level efficacy shall help farmers in the form of savingsincost of application and efforts
It should’ve been operational by now. As per MOSL report, phase 3 will commence operation from January 2016.
CSM outlook remains strong
Phase III of the Jambusar facility will commence operations from January 2016, and
will achieve full potential in the next 2-3 years (asset turnover of 2-2.5x). The order
book in CSM stands at USD650m. Management is confident of achieving its guidance
of 16-18% growth in the CSM business for FY16.
PI Industries Ltd has informed BSE that the Company has commenced the commercial production at its 3rd unit located at Sterling SEZ facility, Jambusar in State of Gujarat w.e.f. January 11, 2016.
