Pidilite Industries Ltd. share price forecast

Consolidated Q4 net revenue increased 12% YoY to Rs 25bn as the C&B/B2B segments grew 11%/21%

Although the company has generated strong revenue growth, input cost inflation has hurt the margins and will continue to do so in the inflationary market conditions. Hence, we maintain our HOLD rating on...

The company's consumer & bazaar (C&B) segment (adhesives & sealants, construction & paint chemical, art & craft materials) contributes 80% to topline while the B2B segment (industrial adhesive, resins and pigments) contributes ~20% to topline Has 4700+ distributors, strong balance sheet (RoE, 20%, RoCE, 24%) Q3FY22 Results: Revenue came in better than our estimates but EBITDA margin...

We are cutting FY22 EPS by 5.6% with minor tweaks for FY23/24 which factors in margin pressure in current year followed by gradual improvement. We expect QoQ GM improvement in a stable input cost scenario incrementally as PIDI has passed on 75% of input cost inflation by calibrated price increases. Near term demand scenario looks tepid given slowing rural demand and...

Consolidated Q3 net revenue up 24% YoY to Rs 28.5bn as C&B/B2B segments grew 23%/30%

Despite a challenging base of 19% sales growth, PIDI reported a healthy 24% sales growth (in line with expectations) in 3QFY22 as demand remained strong. While Jan'22 has been affected by the third COVID wave,...

Operating metrics on the road to recovery Pidilite is a leading manufacturer of adhesives in India. It owns the flagship Fevicol brand. In FY21, Pidilite derived ~80% & ~22% of its turnover from...

The company's consumer & bazaar (C&B) segment (adhesives & sealants, construction & paint chemical, art & craft materials) contributes 80% to topline while B2B segment (industrial adhesive, resins and pigments) contributes ~20% to topline Has 4700+ distributors, strong balance sheet (RoE, 20%, RoCE, 24%) Q2FY22 Results: Revenue growth was ahead of our estimates while EBITDA...

Consolidated Q2 net revenue up 40% YoY to Rs 26.3bn. Like-to-like growth at 33% (ex-PAPL)

Calibrated price hikes cover 70% inflation, softening unlikely for next 6 months. We are increasing FY22/23/24 EPS estimate by 7.7%/4.1%/5.0% and upgrading to Hold on account of 1) Robust demand environment 2) Sustained pick up in organized Real estate and 3) Calibrated price increase covering 70% inflation. PIDI continues to remain a structural pick given 1) Market leadership in a low...

Spiraling input costs to sustain/peak in the near term leading to stressed margins. While the stock is currently overvalued at given price levels, we see limited upside potential. We downgrade our rating on the...

Consolidated Q1 revenue grew 121% YoY, rebounding from a tepid base

Inflation and IIP: Industrial activity rebounds, inflation eases. Pidilite Industries: Higher RM cost to crimp margins; maintain SELL. Apollo Tyres: Margin headwinds ahead; maintain SELL

To continue with capex despite near term headwinds Pidilite will continue with | 350 crore capex plans in FY22E despite short term demand headwinds. This is a strategic move to gain market share in small towns/villages with population less than 50,000. The company has also...

We are reducing our EPS estimate by 9.9%/3.1% for FY/22/23 on the back of inflationary pressure in VAM prices which has increased from USD 1200/ton in 4Q21 to spot levels of USD 2000/ton. We continue to remain positive on long term story of PIDI given its strong presence in water proofing and construction chemicals due to first mover advantage and strong connect with trade. Huntsman acquisition is on track and will strengthen PIDI in Epoxy based adhesives which will lead to higher growth and profitability (~31.3% margins). Lower penetration in waterproofing market provides large...

Pidilite Industries (PIDI) reported consolidated Q4FY21 revenue growth of 45% YoY on a tepid base, with a 45%/26% rise in standalone C&B;/B2B volumes.

Given robust growth across the segment led by higher demand from rural and urban area will likely to support company's topline in coming quarters. However, we remain cautious on the stock, as uncertainty evolves around raw material prices. Hence, we maintain our HOLD rating on the stock with a revised TP of Rs. 1,847 based on rolled...

Margin to normalise with recovery in input cost going forward Raw material prices remained benign during the quarter (average consumption cost of US$800/t vs. US$940/t in Q3FY20). However, recovery in input prices (spot price of VAM US$1300/t) and restoration of advertisement costs, going forward, will result in normalised EBITDA...

Pick-up in economic activity in the areas of construction, automobile, furniture, etc. and continued weakness in raw material prices should benefit Pidilite in the months ahead. At current price levels however, the upside remains limited. We maintain our HOLD rating on the stock with a revised TP of Rs. 1,674 based on 60x FY22E adj. EPS. Topline back on pre-COVID levels, beats expectations Pidilite saw its Q2FY21 consolidated revenue shoot up to Rs. 1,880cr (+114.2% QoQ, +4.1% YoY) on account of substantial recovery seen across all its business segments....