The 18 reports from 8 analysts offering long term price targets
for Pidilite Industries Ltd. have an average target of 1625.50. The consensus estimate
represents a downside of -6.32%
from the last price of 1735.25.
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....
Acquisition of Araldite to strengthen product portfolio Pidilite acquired HAMSPL for a cash consideration of ~| 2100 crore. The acquisition valued at ~5x sales (~50% discount to Pidilite's TTM MCap/sales) is fairly valued. HAMSPL manufactures and sells adhesives, sealants and other products under well-known brands such as Araldite, Araldite Karpenter and Araseal in India with a market share of ~30% (market leader in the epoxy adhesive category). We believe strong margin profile of HAMSPL (in line with Pidilite) and product profile would help expand...
PIDI has returned to growth trajectory with strong double digit growth from Rural and Semi Urban areas leading revival across Construction Chemical and DIY portfolio. B2B segment continued to face headwinds, however signs of recovery were visible in the fag end of the quarter. We remain positive on PIDI due to its strong business moat and sustained investment behind categories of future like 1) waterproofing 2) construction chemicals and aids 3) Wood coatings and 4) Floor coatings etc. We believe investment in Huntsman will not only provide PIDI with leadership position but will also...
Consolidated revenue grew by 4.1% y-o-y to Rs. 1,880.3 crore (driven by a sales and volume mix of 3.6%), ahead of our expectation of Rs. 1,842.9 crore. The consumer bazaar business registered volume and mix growth of 7.2%, while B2B (largely industrial products) business declined by 8.4% in Q2FY2021 (but recovered from 53% decline in Q1). Improved growth in the consumer business is attributable to double-digit growth in the rural markets and tier-IV towns. Globally, the American region registered a strong growth of ~52% in revenues and EBIDTA margins improved to 26% (excluding one-time tax gain of Rs. 9.5 crore). Benign input prices (largely those of VAM) aided in gross margins to remain high by 256 bps to 55.9%....
Pidilite's Q2FY21 results were ahead of our estimate as the improvement in business conditions was better than our anticipation. Consumer Bazaar segment has witnessed strong recovery with +9% growth (55% decline in Q1FY21). Though B2B reported 13% YoY...
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.
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...
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).
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...
