Sharekhan has given Buy recommendation for Pidilite Industries with a target price of Rs. 1915 in its research report issued on Jan 29, 2021
Sharekhan’s research report on Pidilite Industries
Pidilite Industries (PIL) registered strong all-round performance in Q3 with organic revenue, operating profit and PAT rising 16%, 33% and 23% y-o-y, respectively. Domestic consumer business volumes grew 22% while B2B business recovered, rising 12% with good demand from industrials/construction segment. Company benefited from benign input prices in Q3 with gross margin expansion of 97bps. VAM prices have soared to $1300/tonne versus consumption cost of $875/tonne, which will pressurise margins in the near term.
Management is eyeing double-digit volume growth in the coming quarters. We maintain a Buy with a revised PT of Rs. 1,915.
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