Pidilite Industries Ltd. share price target

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,...

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...

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...