Pidilite Industries Shares Decline After Q4 Revenue Misses Estimates

Shares of Pidilite Industries Ltd. declined after its fourth-quarter revenue missed analysts' estimates.

The company's March quarter revenue rose 7.27% to Rs 2,689.25 crore but missed analyst estimates of Rs 2,735.43 crore.

Apart from this, the company's Non-Executive Vice-Chairman NK Parekh stepped down, and Apurva N Parekh was designated as the executive vice chairman.

The company has decided to discontinue operations of the Sargent Art division, in a phased manner. The division posted revenue of Rs 128.80 crore and a loss before tax of Rs 5.2 crore in the recently concluded fiscal.

The company's net profit rose 11.28% year-on-year to Rs 283.03 crore in the quarter ended March, according to its exchange filing. That compares with the analyst estimates of Rs 283.14 crore.

Pidilite Industries Q4 FY23 Highlights (Consolidated, YoY)

• Revenue up 7.27% at Rs 2,689.3 crore (Bloomberg estimates: Rs 2,735.4 crore).

• Ebitda up 14.48% at Rs 459.2 crore (Bloomberg estimates: Rs 494.7 crore).

• Ebitda margin at 17.07% versus 16% (Bloomberg estimates: 18.1%).

• Net profit up 11.28% at Rs 283.1 crore (Bloomberg estimates: Rs 283.1 crore).

• The board recommended a dividend of Rs 11 per share for the fiscal 2023.

Shares of Pidilite Industries declined 0.24% to Rs 2,444.85 apiece, compared to a 0.35% advance in the benchmark NSE Nifty 50 as of 10:23 a.m.

Total traded volume stood at 7.4 times its 30-day average. The relative strength index was at 59.2.

Out of the 20 analysts tracking the company, five maintain a 'buy' rating, six recommend a 'hold' and nine suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 3%.