Pidilite Industries Ltd. share price target

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...

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,...

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

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...