Pidilite Industries Ltd. share price target

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...

Pidilite Industries' (PIDI) consolidated Q4FY20 revenue declined 6% YoY as volumes slipped 3% in the domestic consumer & bazaar (CBP) segment.

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...

Pidilite Industries (PIDI) reported below-expected Q3FY20 consolidated revenue growth of 4% YoY CBP volumes grew just 2% while industrial volumes rose 13% YoY.

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...