Pidilite Industries Q4 Results Review: Dolat Capital Maintains 'Buy' Rating Post Inline Earnings

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Dolat Capital Report

Pidilite Industries Ltd.’s revenue was in line, however, Ebitda and adjusted profit after tax were below our estimate. Revenue grew by 8.2% representing a five-year CAGR of 15.3%. The consumer and bazaar segment posted 6.7% growth, while B2B segment grew by 14.3%.

Additionally, domestic business reported revenue growth of 10.1% YoY with high-single digit UVG of ~9.8%.

With the moderation of Vinyl Acetate Monomer prices, gross margin improved by 160bps YoY. We believe that with current VAM prices, margins would remain in the range of 20-24%.

We have broadly maintained our FY26/27E EPS estimates at Rs 48.2/53.6. In the long run, the company’s strong brand portfolio and wide distribution reach will help accelerate growth. With high growth potential and leadership, Pidilite deserves high valuations.

We maintain our target price of Rs 3,480, valuing the stock at 65x FY27E EPS. Maintain ‘Buy’ rating.

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