Recovery in Volume & Lower GST Rates Key Positives Pidilite Industries has posted a decent performance in 4QFY17 with its consolidated net sales and PBT increasing by 4.9% YoY and 7.7% YoY to Rs13bn and Rs2.5bn, respectively. Quarterly volume growth stood at an impressive 8% on YoY basis. However, its reported net profit declined by 7% YoY to Rs1.6bn mainly owing to 46% YoY increase in tax outgo. We estimate Pidilite to report 14.9% and 16.9% CAGR in revenue and earnings, respectively through FY17-19E. Based on expected EPS of 23, the stock currently trades at 31.9x FY19E earnings. Further, we expect Pidilite to benefit from GST roll-out, as the proposed tax rate...