Brokerage firm Citi has downgraded Pidilite Industries Ltd to 'sell' from 'buy' and cut its target price to Rs 2,200 from Rs 2,800 a share on the belief that the estimates for FY24 account for margin expansion.
The brokerage firm anticipates that the earnings growth beyond FY24 will likely align with the revenue growth of 12-13 percent year-on-year. Additionally, the current valuation of 70 times the one-year forward consensus price-to-earnings (P/E) ratio appears unsustainable.
In a recent regulatory filing, Pidilite Industries announced the launch of its manufacturing facility in Amod, Gujarat. It was set up through its joint ventures Pidilite Litokol Pvt Ltd (PLPL) and Tenax Pidilite Pvt Ltd (TPPL). As part of the arrangement, technology transfer has taken place from Litokol SPA Italy and Tenax SPA Italy to Pidilite.
This significant event marks a major milestone in technology transfer within India's stone and ceramic solutions industry. Pidilite highlighted that Tenax, renowned for its exceptional product solutions for the installation and maintenance of marble and granite stones, will contribute to the advancement of the industry.
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