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.
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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.
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