Pidilite Industries Ltd. share price target

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...

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.

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...

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...