Pidilite Industries Ltd. share price target

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...

The company reported consolidated revenue growth at ~3% YoY (I-direct estimate: 12% YoY), led by ~14% growth in revenue of industrial segments while C&B; segment was impacted by slow volume offtake in Q2FY20. The standalone C&B; volume de-grew ~1% YoY led by poor demand (from real estate), liquidity issue and extended monsoon. On the industrial font, volumes grew 13% YoY. Further, while the performance of domestic subsidiaries (revenue declined ~17% YoY) was marred by a slowdown in construction activities, overseas subsidiaries recorded revenue growth of...

Pidilite Industries (PIDI) reported below-expected consolidated Q2FY20 revenue growth of 2.8% YoY as CBP volumes dipped 0.9%, offsetting industrial volume growth of 12.6%.

14 November 2019 Consolidated net sales grew 2.8% YoY to INR18.1b (v/s est. EBITDA stood flat YoY at INR3.7b (v/s est. PBT grew 5% YoY to INR3.8b (v/s est.

Pidilite recorded a recovery in standalone performance with sales volume growth of 6% YoY in Q1FY20 (albeit lower than expected) better than 2.5% YoY growth recorded during Q4FY19. Consolidated revenue increased 10% YoY supported by price hike and change in mix. Expansion in gross margin by 90 bps was mainly due to benign raw material prices (average VAM prices down 14% QoQ) in Q1FY20. The EBITDA margin expansion to the tune of 120 bps YoY to 22% was in line with our estimate. We believe gross margin will remain elevated supported by a drop in input prices and change in...

Pidilite Industries (PIDI) reported in-line consolidated Q1FY20 revenue growth of 10% YoY, aided by a 6% rise in consumer & bazaar (CBP) volumes.

Consolidated revenue growth at 10% YoY (I-direct estimate: 15% YoY) was led by ~11% YoY growth in the C&B; segment while industrial product segment revenue increased ~7% YoY. Standalone business volume growth was impacted by lower offtake by dealers owing to recent price hikes. However, FY19 volume growth at ~10% YoY was led by ~12% volume growth in the C&B; segment. We model volume CAGR of ~12% in FY19-21E led by recovery in demand from C&B; amid better monsoon and higher government spending in rural India. This, coupled with strong performance...

Consolidated net sales grew 10.3% YoY to INR16.4b (v/s est. of INR17.6b). EBITDA inched up 1.8% YoY to INR2.8b (v/s our est. of INR3.1b), while Adj. PAT was flat at INR2.5b (v/s our est. of INR2.3b) mainly due to lower than expected tax. Standalone Consumer Bazaar (C&B;) segment revenue was up 8.7% YoY to INR11b, with 4% YoY growth in sales volume & mix. Segment EBIT grew 9.2% YoY to INR2.9b, with margins flattish YoY at 26.5%. Consolidated C&B; segment revenues were up 11.1% YoY to INR13.6b, with segmental EBIT growing 6.7% YoY to INR3b. Segmental EBIT margin contracted 90bp YoY to 22.1%....