'Buy' Pidilite Industries Shares Maintains PL Capital Post Q1 Results — Check Target Price
Pidilite continues to see double-digit underlying volume growth, with 9.8% in Q1 FY26.
(Photo source: Company Website)
Pidilite is well placed to sustain growth led by innovations, tie-ups to bring technologically advanced products and 2-4x growth in pioneer and growth categories (45% sales). Near term margin outlook seems stable, although margins leave a little scope of expansion from current levels.
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.
PL Capital Report
Pidilite Industries Ltd. continues ~double-digit underlying volume growth led by 9.8% UVG in 1Q, along with 150 bps Ebitda margin expansion given lower operating expenses and flat gross margin. Pidilite continues to focus on volume-led profitable growth led by its strategy of developing pioneer categories and entering newer segments.
B2B continued its growth momentum driven by Industrial and Project verticals whereas B2C improved sequentially. IBD has witnessed an uptick in sales while MENA margins remain stable.
Pidilite is open to exploring tie ups and entry in segments like adhesives or specialty chemicals for EV/Semiconductor or electronic manufacturing, however it is a long-haul business.
Pidilite is well placed to sustain growth led by innovations, tie-ups to bring technologically advanced products and 2-4x growth in pioneer and growth categories (45% sales). Near term margin outlook seems stable, although margins leave a little scope of expansion from current levels.
We estimate 11.3% EPS CAGR over FY25-27 and assign DCF based target price of Rs 3427 (Rs 3428 earlier). Pidilite is operating at peak of the cycle margins, consequently, returns could be measured unless growth surprises meaningfully. Retain Buy
Click on the attachment to read the full report:
ALSO READ
'Reduce' Page Industries Shares Maintains Dolat Capital Post Weak Q1 Results — Check Target Price
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.
