PI Industries jumps 11% after arm inks pact to acquire TRM India

Shares of PI Industries rallied more than 11 per cent on Friday, April 28 in the afternoon trade to hit a day high of Rs 3,412 after the company on Thursday announced that its wholly-owned subsidiary PI Health Sciences (PIHS) has entered a share purchase agreement with Therachem Research Medilab LLC (TRM).

PI Health Sciences will acquire 100 per cent shareholding in TRM India.

“Share purchase agreement among PIHSL, Therachem Research Medilab LLC, an entity incorporated in Alabama, United States of America (“TRM US”), Dr. Pooran Chand, Ms. Namita Bansal and Therachem Research Medilab (India) Private Limited (“TRM India”) for the acquisition of 100% shareholding of TRM India which is an Indian subsidiary of TRM US.,” the regulatory filing read.

Further PIHS will also hold 100 per cent shareholding in Solis Pharmachem Private Limited (“Solis Pharmachem”)

“Share purchase agreement among PIHSL, TRM US, Dr Pooran Chand, Ms Namita Bansal and Solis Pharmachem Private Limited (“Solis Pharmachem”) for the acquisition of 100% shareholding of Solis Pharmachem which is an Indian subsidiary of TRM US,” the filing read.

At the time of filing this report, shares of PI Industries traded over 9 per cent higher on NSE at Rs 3,355.5 apiece. On BSE the stock quoted Rs 3,362 per share.

Why did PI Industries’ stock rally?

According to the Zee Business report after the acquisition, PIHS will have a stronghold in the European and US markets. The company will be able to see strong growth prospects ahead.

What do analysts suggest on PI Industries?

Sandeep Waghle, Founder & CEO at Power My Wealth, said that the stock has a resistance at Rs 3400/3410. If investors have an intraday view or a week’s view then they should book at Rs 3000/3400, but if the view is positionally then investors should buy at a target price of Rs 3,700, keeping a stop loss at Rs 3,200 apiece

According to Waghle, the stock has good chart pattern.

Brokerage firm B&K Securities has maintained a ‘hold’ call on shares of PI Industries and has given a target price of Rs 3,690 apiece

The brokerage believes that the company has strong visibility of growth in its existing product portfolio which corroborates with the innovator clients' guidance.

PI Industries' share price history

On a year-to-date (YTD) basis, the shares of PI Industries have declined over 1 per cent as compared to Nifty50’s dip of over 1 per cent.

In the past six months, the stock rose over 3 per cent as compared to the headline index’s rise of nearly 1 per cent.