Pidilite Industries Ltd. share price target

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.

Pidilite Industries (PIDI) reported Q3FY23 consolidated revenue growth of 5.2% YoY (3-year CAGR of 15.9%) on a high base, with consumer & bazaar (C&B) segment revenue up 6.9% YoY. Consolidated operating margin contracted 272bps YoY (flat QoQ) to 16.5% due to higher raw material costs (gross margin declined 175bps YoY) resulting in EBITDA/PAT decline of 9.7%/15.2% YoY, respectively.