Pidilite Industries Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Pidilite posted strong sales growth of ~19% YoY led by ~13-14% volume growth YoY (domestic) in Q4FY16. Consumer & bazaar (C&B;)...

Pidilite Industries' product range includes adhesives and sealants, construction and paint chemicals, automotive chemicals, art materials, industrial adhesives, industrial and textile resins and organic pigments and preparations. The company's adhesives brand Fevicol is the largest selling adhesives brand in Asia. Pidilite enjoys a leadership position (with over 60% share) both in the Indian adhesives market as well as the instant adhesive category (80% share).

Stellar, but in-line 4QFY16performance; Stock remains among our preferred picks Pidlite Industries' (PIDI) performance in 4QFY16 was strong, but came in line with our expectations. Standalone sales grew by 12.3% YoY (aided by a...

Pidilite is the market leader in adhesives and sealants, construction chemicals, hobby colours and polymer emulsions in India.

Pidilite reported a strong 3QFY16 (consol) with above-estimate growth in revenue ( 11.4% YoY to Rs 13.4bn) and APAT ( 49.3% to Rs 1.86bn). This is creditworthy in a weak demand scenario. Gains in gross margins (GM) continued ( 745bps YoY to 51.6%), helped by soft RMs (VAM and crude prices down ~33% YoY) and better mix. This led to a strong EBITDA growth of 53.4% YoY at Rs 2.95bn (603bps rise in EBITDA margins at 22%).

effective products across the segments. Presence of few players in adhesive segment led PIL to become largest adhesive Relative performance chart (one year)...

Pidilite reported subdued revenue growth (consol) of 5.2% YoY (Rs 13.2bn, below our estimate of Rs 13.7 bn), indicating sluggish demand. However, the above-estimate profit growth and margin expansion are creditworthy. Gross margin (GM) was at a multi-quarter high with 775bps YoY rise to 51.9%, aided by RM tailwinds (VAM and crude prices were down ~30% and ~47% YoY) and improved mix. This resulted in strong EBITDA growth of 46.1% YoY at Rs 3bn (639bps rise in EBITDA margins at 22.8%).

Pidilites 9.4 % YoY revenue growth in 1QFY16 indicates sluggish demand

Pidilites 9.4 % YoY revenue growth (cons.) in 1QFY16 (Rs. 14.7 bn, below est) indicates sluggish demand. However, gross margin rose impressively by 515 bps YoY to 49.1%, highest since Q4FY10.