Pidilite Gets 'Neutral' Rating From Motilal Oswal, Says Current Valuation To Limit Upside Potential 

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

Pidilite Industries Ltd.’s core categories continue to enjoy GDP multiplier; the advantage of penetration and distribution can help the company deliver healthy volume-led growth in the medium term. Ebitda margin is already at an elevated level (~23.8% in 9M FY25).

We build in a CAGR of 13%/14%/15% in sales/Ebitda/PAT during FY25- 27E. Pidilite stands out for its market-leading position in the adhesives market, along with a strong brand and a solid balance sheet. However, we believe the current valuation limits the upside potential.

We reiterate our Neutral rating on the stock with a target price of Rs 2,950, premised on 55 times Mar’27E earnings per share.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.