Sharekhan's research report on Pidilite Industries
Pidilite Industries’ (Pidilite’s) Q1 performance beat estimates driven by higher-than-expected EBIDTA margins of 23.9% (versus expectation of 21-21.5%); standalone volumes grew ~10%. Company will maintain prices if there is not much volatility in input prices. Volume and value growth should even out in H2FY25. Domestic volume growth is expected to remain strong; Africa will maintain double-digit growth amongst international markets. EBIDTA margins would remain at higher of range of the expected band of 20-24% with input prices remaining stable.
Outlook
Stock has run up by ~20% since our upgrade to Buy on 24 January, 2024. Valuations are stretched at 76x/65x FY25E/26E EPS, respectively. With unfavourable risk-reward ratio we downgrade rating on the stock from Buy to Hold with a revised PT of Rs. 3,397.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
