Hold Pidilite Industries; target of Rs 2589: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Pidilite Industries with a target price of Rs 2589 in its research report dated May 09, 2023.

Broker Research

May 13, 2023 / 10:01 IST

hold

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Pidilite Industries

We are retaining Hold rating on PIDI and estimate 37% EPS CAGR over FY23- 25 given 1) soft VAM prices USD1100/ton which will enable 850bps gross margin expansion over FY23-25 2) demand green shoots in rural India and 3) expected pick up in premiumisation on hopes of moderation in prices. Long term demand trends remain favorable with 1) pick up in real estate, infra, repair & renovation activity 2) sustained launch of innovations across segments 3) targeted increase in ratio of Pioneer and Growth categories from current 33% to 50% over next 3 years and 4) gains from deeper distribution reach in rural India and small towns.

Outlook

We rollover and assign a DCF based target price of Rs2589 (Rs2500 earlier). We expect steady returns given PE of 51.9xFY25 EPS. Higher than expected growth and margins can provide upside risk to our estimates. Retain Hold.

For all recommendations report, click here