Buy Pidilite Industries; target of Rs 1734: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Pidilite Industries has recommended buy rating on the stock with a target price of Rs 1734 in its research report dated February 04, 2026.

Broker Research

February 05, 2026 / 13:30 IST

buy

Prabhudas Lilladher's research report on Pidilite Industries

PIDI continued to witness strong UVG momentum, led by 9.7% UVG in C&B in 2Q. EBITDA margin expanded 182bps YoY despite elevated Ad spends, supported by healthy GMs of 56.5%. The company remains focused on volumeled, profitable growth, driven by pioneer category development and entry into new segments. B2B sustained growth momentum, led by Project verticals, while industrial products were partially impacted by a decline in exports. PIDI is well positioned to sustain growth, driven by continuous innovations, strategic tie-ups to introduce technologically advanced products, and 2–4x growth in pioneer and growth categories (45% of sales). Near-term margin outlook remains stable given benign RM prices; however, expansion looks unlikely as PIDI continues to invest in new categories and brand building.

Outlook

We estimate 10% EPS CAGR over FY26–28 and assign a DCF-based target price of Rs1,734 (Rs1714 earlier). The stock trades at rich valuations of 48.5xFY28, however given 15% correction from peak and steady outlook, it offers scope for mid teen returns in next 12-15 months. Retain BUY.

For all recommendations report, click here