Stocks to trade today: Trade Brains Portal recommends two stocks for 11 June

Trade Brains Portal has picked two stocks from the fertilizers & agrochemicals sector.

Stocks to trade today, recommended by Trade Brains Portal for 11 June:

PI Industries Ltd

• Current price: ₹3,920
• Target price: ₹4,660 in 12 months
• Stop-loss: ₹3,550
• Why it’s recommended: PIIL was established in 1946 as an edible oil refinery; over time, it expanded into agrochemical formulations. In the mid-1990s, it diversified further by entering the custom synthesis and manufacturing (CSM) export market, catering to global agrochemical innovators. Currently, PIIL is a prominent player in both CSM exports and the domestic agricultural inputs industry. The company operates in over 40 countries, in 9 overseas offices, with 8 manufacturing sites. With an international presence in countries like the US, Italy, Japan, the Netherlands, and more, the company has 25+ stock points, 15,000+ distributors, and 100,000+ retail points.

In FY25, PI Industries reported a revenue of ₹7,978 crore, a 4% increase YoY, and PAT stood at ₹1,660 crore. Its Inventory levels have been reduced to 45 days from 62 days. The company’s cash flow from operations was at ₹1,413 crore, and gross margins increased by 53% YoY.  In FY25, the company’s order book stood at $1.3 billion. 

Additionally, the company's domestic biologicals revenue grew by 20% YoY, and agrochemical exports surged 31% YoY, commercializing 6 new products in exports and 7 in domestic agri-brands, during the year. Their biological revenue currently generates ₹250 crore, and for the next 5 years, the company targets ₹1,000-1,200 crores in this segment.

Further, for FY26, the company is transitioning from an agri-sciences company to a life sciences platform and aiming for $15-20 billion in agrochem (CSM), pharmaceuticals, CRDMO, electronic chemicals, and biologicals, and a robust product pipeline with 50% of new inquiries on non-agrochem. The company spent ₹928 crore on PI Health Sciences (PIHS) and expects ₹800-900 crore for FY26 for new product solutions and global expansions.

The company expects to achieve > 75% revenue growth in FY26. EBITDA margins will be around 25%, gross margins will be 50-52%, and 60-65% for Pharma. The ETR for the next 2-3 years will be 22-23%, and asset turnover will be 2.2x-2.5x. The company will be commissioning two plants, one in FY26 and another in FY27. In addition, the company is commissioning kilo-facilities in Lodi, Italy, in Q1FY26 and expects to commercialize 8-10 new products in FY26.

• Risk Factor: The agrochemical sector is highly competitive, and the company faces competition from both domestic and international players like UPL, Bayer CropScience, Rallis India, and Sumitomo Chemical Co. The company also faces strict environmental and safety regulatory norms, thus, any failure to adhere to changes in regulations like registration requirements, pesticide bans, etc, could impact its margins.

Also Read: PI Industries bets on innovation and scale to ride out trade turbulence

Godrej Agrovet Ltd

• Current price: ₹806
• Target price: ₹980 in 12 months
• Stop-loss: ₹719
• Why it’s recommended: Godrej Agrovet, established in 1991, part of the Godrej Group, is a diversified, research and development-focused agribusiness company. They focus on improving the productivity of Indian farmers by innovating products and services to increase crop and livestock yields sustainably. They have leading market positions in animal feed, crop protection, oil palm, dairy and poultry, and processed foods. Their animal feed business is one of the largest organized players in the compound feed market in India, with an annual sales volume of 1.47 million tonnes as of FY25.

On a consolidated basis in FY25, EBITDA margin excluding non-recurring items improved to 10.1% from 8.3% in FY24, despite revenue remaining relatively flat year-on-year. The vegetable oil segment delivered remarkable results in FY25, growing at 33.8% YoY from ₹171 crore in FY24 to ₹229 crore, driven by an increase in the average realization of crude palm oil and palm kernel oil prices. Their strategic eMphasis on value-added products continues to gain traction, now contributing a significant 37% of the total sales.

The animal feed segment, which accounts for 48.5% of the total revenue, showed a flatter trend in the sales volume growth. However,  for FY25, segment margin improved sharply from 4.6% in FY24 to 6.1% in FY25 on account of favorable commodity positions and cost optimization initiatives. Animal feed’s EBIT per MT significantly enhanced by 28%, from ₹1,542 in FY24 to ₹1,973 in FY25. Management expects FY26 EBIT/MT to remain in the ₹1,900–2,000 range.

Godrej Agrovet’s teams have worked closely with Indian farmers to develop over 61,700 hectares of smallholder oil palm plantations to bridge the demand and supply of edible oil. The management expects revenue growth between 16% and 18%, driven by volume growth, and anticipates strong growth across the Crop Protection business, the Animal Feed business, and the Astec LifeSciences business in FY26.

• Risk Factor: The company remains exposed to fluctuations in raw materials and commodity prices in its animal feed, oil palm, and dairy segments, which could lead to supply chain disruptions, pricing pressure, etc, affecting the margins. Furthermore, the company depends on favourable monsoon conditions; thus, weak monsoons or low crop realizations could lead to lower demand for the business.

Also Read: As India looks to attract global EV makers, these five companies could win big

Market Recap

The Nifty 50 opened above the 20-day EMA on Tuesday, starting at 25,196, surging to 25,199.30, and closing at 25,104.25, ending the day on a flat note. 

The BSE Sensex reflected this trend, opening at 82,643.73 and closing at 82,391.72, down by 53.49 points, or 0.06%. Both indices traded above all four EMAs (20/50/100/200), with the Nifty 50 RSI at 61.46 and the BSE Sensex RSI at 59.87 (well under the overbought threshold of 70). This was primarily due to profit booking among investors as the markets had shown an optimistic trend in recent days following the RBI rate cut.

On the sectoral front, the Nifty IT index emerged as the top gainer, closing at 38,299.95 with an increase of 630.75 points, or 1.67%. Key IT stocks, including Oracle Financial Services Software Ltd., Persistent Systems Ltd, Mphasis Ltd, LTI Mindtree, and Coforge, surged by up to 3%. 

The Nifty Media index closely followed, gaining 18.65 points, or 1.09%, and closing at 1,731.65. Network18, Zee Entertainment, Hathway Cables, and Nazara Technologies were leaders in this sector, with gains of up to 5%.

Conversely, the Nifty Realty index was the significant laggard, dropping 11.85 points, or 1.14%, to close at 1,026.30. Macrotech Developers Ltd and Prestige Estates each lost over 2%, contributing to the index's decline. Additionally, the Nifty PSU Bank Index also finished in the red at 7,170.85, declining by 37.60 points, or 0.52%.  

Asian markets performed on a mixed note on Tuesday as the US-China trade talks extended to a second day, with expectations of easing policy among the world’s largest economies. 

Also Read: Why Jio BlackRock has potential to disrupt the asset management industry

Among the Asia-Pacific markets, the Hong Kong’s Hang Seng index was flat with -0.08% or -18.56 points, closing at 24,162.87, whereas South Korea’s Kospi index continued its positive momentum with gain of 0.56% or 16.08 points closing at 2,871.85, Shanghai index was down by -0.44% or 14.95 points, closing at 3,384.82 and Japan’s Nikkei 225 gained 0.32% or 122.94 points ending at 38,211.51. 

The US Dow Jones Futures was also trading on a flat trend at 42,777, down by -0.04% or 19 points.

Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.

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