The 16 reports from 5 analysts offering long term price targets
for Pidilite Industries Ltd. have an average target of 1426.20. The consensus estimate
represents an upside of 0.68%
from the last price of 1416.50.
The company targets ~INR1b revenue or higher for the Pioneer categories over the next The Core business (Fevicol and sub-brands Fevikwik, M-Seal, and Fevicryl) is likely to grow at 12x GDP. This means that and Bazaar (C&B;) and B2B products over the next three to four years, by the end of which the Growth and Pioneer categories are likely to comprise around half of sales. The companys clutter-breaking marketing is also Compared with the erstwhile approach of focusing on a multitude of geographies, including the US and Brazil, in recent years, the company has decided to focus on certain emerging markets with high growth potential and where an India-like All the Pioneer category brands are in the nascent categories; thus, the company is trying to grow the categories using innovation and technology and by leveraging on R&D; is gaining increasing importance, with a nearly 2.5x increase seen in R&D; spends over the past five years.
While the structural investment case remains intact, the recent earnings track record, lower ROCEs (in the mid-20 levels) v/s consumer peers, and valuations of 54x FY22 do not leave much room for us to turn constructive from a one- Overall gross margins expanded 210bp YoY to 53.5%. Revenue from domestic subsidiaries declined 82.2% YoY to INR295m in 1QFY21; EBITDA stood at INR308m v/s INR176m in 1QFY20. The management expects this to continue in the near term, with the caveat that these low levels are unlikely to sustain as the demand Improvement in the demand scenario is likely to lead to positive topline and FY2022 is likely to be muted. While the structural investment case remains intact, the recent earnings track record, lower ROCEs (in the mid-20 levels) v/s consumer peers, and valuations of 54x FY22 do not leave much room for us to turn constructive from a one-year with TP of INR1,335 (50x Jun22 EPS).
Sharp decline in Q1 revenue amid lockdown Consolidated revenue fell ~56% YoY to ~| 878 crore in Q1FY21 due to sales loss for almost 40 days in domestic operations amid lockdown. The standalone revenue fell ~57% YoY led by ~58% decline in volume mix. Overseas subsidiaries recorded revenue de-growth of ~36% YoY led by revenue decline of ~49%, ~30% and ~25% YoY in Asia, Middle East and America regions, respectively. Further, domestic subsidiaries also recorded a sharp revenue fall of 82% YoY led by sharp fall in volume. Post relaxation...
like 1) waterproofing 2) construction chemicals and aids 3) Wood coatings and 4) Floor coatings etc. we believe investment in Papperfry and Tenex India Stone Products will open further growth opportunities in its core categories. We would watch out for trends in Gross margins in FY22/23 as Pidilite had retained 500bps gross margin expansion during previous low raw material cycle. We estimate 1.2% decline in FY21 EPS and 19.1% PAT CAGR over FY21-23. We value the stock at Rs1415 based on SOTP (45x Sep-22 to...
Revenue loss of | 150 crore due to lockdown Consolidated revenue declined 6% YoY to | 1547 crore mainly due lockdown in March 2020. Pidilite lost revenue of ~| 150 crore due to lockdown. Standalone revenue posted growth of 9.6% YoY till March 21, 2020. However, the lockdown situation eroded growth, which led to 4% YoY de-growth in revenue for Q4FY20. Post relaxation of lockdown, suburban and rural India saw a faster recovery in demand but volume offtake is still...
Our interaction with managements and dealers indicates significant prebuying activity of consumer goods during January-February 2020 on fears of supply related issues from China. While companies have secured supplies to avoid any disturbance in sales in Q4FY20, demand was negatively impacted in March 2020 owing to holiday and post that lockdown across countries. We also believe a late recovery in demand for consumer goods will also impact Q1FY21 performance due to 1) shortage of workers (due to heavy migration), 2) shift in focus on essential goods compared to discretionary products and 3) streamlining of supply chain....
Input costs ease; Demand still remains weak Pidilite is a leading manufacturer of adhesives in India. It owns the flagship Fevicol brand. In FY19, Pidilite derived ~84% & ~16% of its turnover from...
The standalone volume, value growth at ~3%, 5%, respectively, was mainly due to muted C&B; volume growth at 2% YoY led by poor demand in urban India (largely from real estate) and liquidity issue. On the industrial front, volumes grew 13% YoY. Further, while the performance of domestic subsidiaries (revenue declined ~3% YoY) was marred by a slowdown in real estate, auto and engineering industry, overseas subsidiaries recorded revenue growth of 10% led by the strong performance of the company in Bangladesh and Sri Lanka. The management reiterated the future volume...
30 January 2020 EBITDA and PAT came in significantly ahead of our estimates, led by lower VAM costs and lower-than-expected tax rates. While management aspires to go back to the erstwhile 15% top-line growth trajectory, the timing of demand revival still remains uncertain. Valuations of 54.8x FY21E and 47.9x FY22E EPS lead us to maintain our Neutral rating. at INR13.8b, Segmental EBIT grew 25.4% YoY to INR4.5b, with the margin expanding by 570bp YoY to 32.7%. C&B; revenue was up 3.1% YoY at INR16.5b, with EBIT growing 31.2% YoY to INR4.
We reiterate our HOLD rating on the stock with a revised target price of Rs 1,387 based on 49x FY21E adj. EPS. Margins stabilize as costs decrease Q2FY20 sales was up 2.8% YoY to Rs. 1,807 cr. even as overall sales volume and mix merely grew by ~1%. Gross margin improved by ~400bps as cost of sales declined by 5.3% YoY due to drop in VAM prices in Q2FY20. However, EBITDA declined marginally to Rs. 368cr. (margin: 20.4%, down by 40bps YoY) due to increase in advertising spend arising out of two major campaigns, Fevicol sofa campaign and a new Fewikwick...
The company reported consolidated revenue growth at ~3% YoY (I-direct estimate: 12% YoY), led by ~14% growth in revenue of industrial segments while C&B; segment was impacted by slow volume offtake in Q2FY20. The standalone C&B; volume de-grew ~1% YoY led by poor demand (from real estate), liquidity issue and extended monsoon. On the industrial font, volumes grew 13% YoY. Further, while the performance of domestic subsidiaries (revenue declined ~17% YoY) was marred by a slowdown in construction activities, overseas subsidiaries recorded revenue growth of...
14 November 2019 Consolidated net sales grew 2.8% YoY to INR18.1b (v/s est. EBITDA stood flat YoY at INR3.7b (v/s est. PBT grew 5% YoY to INR3.8b (v/s est.
Pidilite recorded a recovery in standalone performance with sales volume growth of 6% YoY in Q1FY20 (albeit lower than expected) better than 2.5% YoY growth recorded during Q4FY19. Consolidated revenue increased 10% YoY supported by price hike and change in mix. Expansion in gross margin by 90 bps was mainly due to benign raw material prices (average VAM prices down 14% QoQ) in Q1FY20. The EBITDA margin expansion to the tune of 120 bps YoY to 22% was in line with our estimate. We believe gross margin will remain elevated supported by a drop in input prices and change in...
Consolidated revenue growth at 10% YoY (I-direct estimate: 15% YoY) was led by ~11% YoY growth in the C&B; segment while industrial product segment revenue increased ~7% YoY. Standalone business volume growth was impacted by lower offtake by dealers owing to recent price hikes. However, FY19 volume growth at ~10% YoY was led by ~12% volume growth in the C&B; segment. We model volume CAGR of ~12% in FY19-21E led by recovery in demand from C&B; amid better monsoon and higher government spending in rural India. This, coupled with strong performance...
Consolidated net sales grew 10.3% YoY to INR16.4b (v/s est. of INR17.6b). EBITDA inched up 1.8% YoY to INR2.8b (v/s our est. of INR3.1b), while Adj. PAT was flat at INR2.5b (v/s our est. of INR2.3b) mainly due to lower than expected tax. Standalone Consumer Bazaar (C&B;) segment revenue was up 8.7% YoY to INR11b, with 4% YoY growth in sales volume & mix. Segment EBIT grew 9.2% YoY to INR2.9b, with margins flattish YoY at 26.5%. Consolidated C&B; segment revenues were up 11.1% YoY to INR13.6b, with segmental EBIT growing 6.7% YoY to INR3b. Segmental EBIT margin contracted 90bp YoY to 22.1%....
