Pidilite Industries Ltd. share price target

PIDI continues strong UVG at 9.8% in 4Q, and 160bps gross margin expansion given benign input costs. PIDI continues to focus on strong volume-led profitable growth led by its strategy of developing pioneer categories and entering newer segments. B2B continued its growth momentum driven by Industrial & Project verticals whereas B2C improved sequentially. IBD has witnessed a flattish sale while maintaining stable margins. PIDI is open to exploring tie ups and entry in segments like adhesives or specialty chemicals for EV/Semiconductor or electronic manufacturing, however it is long haul...

achieve double digit UVG in mature category like Adhesives (Fevicol). While Dr Fixit, Roff and IBD will grow fast, it has Araldite, WD40, ICA Pidilite as strong segments in pioneer categories. PIDI has Unofin, Electronics and Haisha paints as nascent segments which will be next pioneer categories. We expect PIDI to post sales and PAT CAGR of 11.2% and 13.2% over FY25-27...

Pidilite Industries (PIDI) hosted an analyst day to highlight its business moats and growth across categories. Company is market leader in adhesives and sealants with ~70% share in Fevicol and M-Seal and has structured its portfolio into Core, Growth, and Pioneer segments to drive strategic expansion.

Pidilite Industries (PIDI) reported consolidated revenue growth of 8% YoY in 3QFY25, with underlying volume growth of 10% (est. 9%). The consumer business witnessed value and volume growth of 5% and 7% YoY, reflecting a similar trend in 9MFY25. B2B business reported 19% and 22% value and volume growth.

Pidilite’s Q3FY25 performance was good with the company delivering volume-led revenue growth amid a soft demand environment. Consolidated revenues grew by 7.6% y-o-y to Rs. 3,369 crore driven by investments in brand building, distribution expansion, a better supply chain network and innovation. Standalone revenues grew by 9.3% y-o-y driven by 9.7% volume growth.

Pidilite’s Q1FY25 performance beat ours as well as the street’s expectation on back of higher than expected OPM at 23.9% (versus expectation of 21-21.5%) aiding strong 20% y-o-y growth in the PAT.

The Company is taking actions to drive demand generation initiatives to deliver profitable volume growth. The existing subsidiaries in India have delivered strong sales and profit growth, despite demand and inflationary pressures. A series of actions and initiatives have been taken to maintain and strengthen the performance in the year.

Pidilite Industries (PIDI) reported consolidated revenue growth of 5.6% YoY (4-year CAGR of 12.9%) driven by 9.2% YoY growth in the consumer & bazaar (C&B) segment, while industrial products (B2B) segment declined 6.1% YoY. Standalone volumes were up 7.9% YoY with domestic C&B segment volumes growing 11.7% YoY.

Pidilite Industries (PIDI) reported consolidated revenue growth of 7.3% YoY (4- year CAGR of 13.2%) driven by 10.4% YoY growth in the consumer & bazaar (C&B) segment while revenue for industrial products (B2B) segment declined 1.8% YoY. Standalone C&B segment witnessed volume growth of 7% YoY.