Pidilite Industries shares rose over 3 percent to Rs 3,057 apiece on May 12, after the adhesive conglomerate posted an upbeat Q4 report.
Pidilite Industries reported consolidated revenue growth of 8 percent year-on-year for the quarter ended in March. Profits for the quarter stood at Rs 1,550.3 crore. The company’s gross margins expanded by 160 basis points year-on-year, driven by stable raw material prices.
The EBITDA margin was up by 30 basis points year-on-year at 20.1 percent, while EBITDA rose by 9.6 percent year-on-year, missing Street estimates due to higher staff costs from a one-off expense of Rs 17 crore.
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Price reductions have had a limited impact, and the gap between value and volume has been bridged. Moving ahead, the management aims to focus on growing revenue, led by higher volume.
The unprecedented macro environment remains a key factor to watch. Urban demand has shown sequential improvement; however, rural areas continue to outpace urban growth. The B2B segment is expected to sustain low to mid-teen growth over the medium term.
Analysts at Motilal Oswal reiterated a ‘Neutral’ stance on the stock, with a target price of Rs 3,000 per share, citing rich valuations. Meanwhile, UBS shared a ‘Buy’ call on Pidilite, with a target price of Rs 3,600.
UBS analysts said that the management remains optimistic about consumer demand and is targeting double-digit profitable volume growth in FY26. Moreover, the brokerage also noted strong opportunities in the construction sector (residential and commercial), as well as the paints business which is growing month-on-month.
Factoring in higher staff costs and advertising spends, Nuvama slashed FY2026E and FY2027E earnings per share by 4 percent each. This, combined with a valuation rollover to FY2027E, makes us share a ‘Buy’ rating with a target price of Rs 3,645, down from Rs 3,660, they said.
Goldman Sachs issued a ‘Buy’ call on Pidilite with a target price of Rs 3,475 per share, citing strong near double-digit volume growth despite a muted macro environment. The brokerage noted that the B2B segment is expected to sustain strong momentum over the next two to three years.
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