Pidilite Industries Ltd. share price target

ONGC's Q1FY19 PAT at Rs 61bn (+58% YoY) came in below estimates but carries no subsidies. Below-expected oil realisations and higher expenses led to a miss on EBITDA at Rs 147bn (+49% YoY). Oil production stood at 6.2mmt (3.5% YoY) and gas output at 6.2bcm (+3.2% YoY). We raise oil estimates to US$ 75/80/85 for FY19/FY20/FY21 (with subsidies at 13-19% of gross) and increase our Mar'19 target price to Rs 220 (vs. Rs 210). At 5.8x/5x FY20E/...

2 August 2018 to INR18.3b (est. Reported Consumer Bazaar segment revenue increased 11.3% YoY to INR15.9b, with the segmental EBIT margin expanding 190bp YoY to 25.3%. Reported Industrial segment revenue grew 3.7% YoY to INR2.6b, with the segmental margin contracting 10bp YoY to 14.7%. Standalone reported Consumer Bazaar segment revenue was up 9.6% YoY to INR13.7b, with (est.

Pidilite Industries Limited is an Indian-based adhesives manufacturing company.

Standalone sales grew 14.5% YoY led by sales volume & mix growth of ~13% YoY. Both consumer & bazaar (C&B;) and industrial segments recorded strong volume, mix growth of ~13%, ~14% YoY, respectively, in Q4FY18 supported by sustained demand from rural India. On consolidated basis, sales growth at ~15% YoY (~20% excluding sales of cyclo division) was driven by strong performance of domestic, international subsidiaries. Overseas subsidiaries recorded sales growth of ~16% YoY (constant currency basis)...

In the domestic business, the existing well-penetrated categories are expected to grow at ~1.5x of GDP growth, led by repeated usage. Newer and smaller businesses, too, have the potential to grow at 2-4x of GDP growth, driven by rising penetration. Internationally, PIDI will now focus more on emerging markets like South-East Asia, the Middle East, Bangladesh and Thailand. Investments in the US and Brazil businesses will be put on the back burner. With the Goods & Services Tax (GST) now getting streamlined, management expects conversion from unorganized to organized trade to be faster in adhesives than in staples. Strict tax compliance norms are expected to test the survival of unorganized (~30% of the market) and even smaller players. Margins might come under pressure in the near term owing to commodity cost inflation. We maintain Buy on PIDI with a target price of INR1,065, based on 45x March FY20E EPS ??? at a 15% premium to the three-year average P/E.

Decent quarter; Rising commodity costs remain a concern Pidilite Industries Ltd. is a pioneer in consumer and speciality chemicals in India. The company has a diversified product portfolio including adhesives and sealants,...

ICICI Securities Ltd | Retail Equity Research During Q3FY18, Pidilite recorded consolidated sales growth of ~16% YoY (~17% excluding sales of cyclo division). On the low base of Q3FY17, standalone revenue grew ~20% YoY led by volume & mix growth of ~22%. Consumer & bazaar (C&B;) and industrial product segment recorded sales growth of ~20% each YoY supported by volume, mix growth of ~23%, ~18% YoY, respectively. Overseas business recorded muted topline growth of ~3% YoY (constant...

Solid Volume Growth Drives Overall Performance; C&B (23% YoY) &Industrial Product (18% YoY): PIDI in Q3FY18 recorded solid performance on account of ~ 23% volume growth in underlying standalone consumer & bazaar products and ~ 18% growth in volume & mix of industrial products on YoY basis.

Beating our estimates on all operational parameters, Pidilite Industries has posted a stellar set of numbers for 3QFY18. Its consolidated reported revenues grew by 15.6% YoY to Rs15.4bn (vs. our estimate of Rs14.9bn), while net profit increased by 18% YoY to Rs2.4bn (vs. our estimate of...

PIDI's 3QFY18 reported consol. net sales grew 15.6% YoY to INR15.4b. Underlying standalone volume & mix growth stood at 22%, with 23% volume & mix growth in Consumer & Bazaar. Consol. EBITDA rose 29.2% YoY to INR3.7b (est. of INR3.3b), while adj . PAT grew 17.3% YoY to INR 2.4b (est. of INR2.2b). Consol. gross margin expanded 20bp YoY to 53.4%, while comparable gross margin shrunk ~100bp YoY. PIDI witnessed signs of commodity cost inflation. Lower staff costs (-110bp YoY to 11.3%) and other expenses (-120bp YoY to 18.1%) led to EBITDA margin expansion of 250bp YoY to 24% (est. of 22%). Consolidated segmental performance: Reported Consumer Bazaar segment revenues were up 7% YoY to INR13b, with segmental EBIT growing 24.1% YoY to INR3.7b. Segmental EBIT margin expanded sharply up by 380bp YoY to 27.9%. Reported Industrial segment revenue grew by 12.3% to INR2.5b, with segmental margin expanding 190bp YoY to 16.9%.