Anand Rathi
Pidilite Industries, having a leadership status in adhesives and sealants market is now eying the similar position in waterproofing & Flooring business which is currently very small (approx. 5 percent of revenues) as compared to its traditional business. Its key brands in this segment includes Dr.Fixit and Roff.
Q3 results the company’s reported net sales stood at Rs 1,838 Cr, grew by 20 percent over the same quarter last year, EBITDA before non-operating income stood at Rs 337 Cr and declined by 9 percent over the same quarter last year
Profit after tax at Rs 220 Cr declined by 8 percent over the same quarter last year. For YTD Dec'18, profit after tax at Rs 692 Cr declined by 4 percent over the same period last year.
The overall market for waterproofing & Flooring in India is expected to grow to more than Rs 5,000 Crores by 2025 which is currently less than Rs 2,000 Crores.
Construction chemicals market has a huge growth potential in India owing to the growth of construction and manufacturing sector. The company will benefit from the basket of products offered by it to these sectors.
The company’s Industrial specialty chemical products in Professional & Do It Yourself (DIY) segment in foreign markets is also catching up fast as they provide flexibility, innovation and unlimited design variation.
We expect Pidilite Industries revenues to grown at a CAGR of 15.8 percent from FY-19E through FY-20E. Its consolidated revenues are expected to be around Rs 8,156 Crores by FY20E.
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