Neutral Pidilite; target of Rs 1605: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's research report on Pidilite

As a part of our Wealth Creation Study (Link) released yesterday, Mr Bharat Puri – MD of Pidilite (PIDI), highlighted certain factors he attributes to PIDI being ranked a) second among all-round wealth creators over 1995–2020; b) fourth among the most consistent wealth creators over 1995–2020; c) among the biggest wealth creators over 1995–2020. Moreover, the company has been ranked the most consistent wealth creator of the recent decade (2010–20). While near-term valuations at 68.2xFY22 EPS appear challenging, two main factors have resulted in robust topline and earnings growth for PIDI in the past; these are likely to help sustain strong growth in the future as well. A) PIDI has a remarkable longer term track record of innovation, aimed at meeting unmet consumer needs. B) Innovation is supported by outstanding sales and distribution as well as a ‘pro-neurial’ culture, which has the best of professional efficiency and entrepreneurial spirit. In recent years – as we highlighted in a detailed note in September – the company is increasingly focusing on the ‘Growth’ and ‘Pioneer’ categories to boost overall topline growth.

Outlook

We maintain Neutral, with TP of INR1,605 (55x Dec’22E EPS).

For all recommendations report, click here

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