Pidilite Industries Q1 Results Review - Inline Performance; Margin Outlook Improves: Motilal Oswal

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Pidilite Industries Ltd.’s Q1 FY24 performance was in line, due to healthy volume expansion. The domestic consumer and bazaar business clocked a sharp volume growth of 12% YoY. Meanwhile, the business-to-business segment posted a single-digit decline mainly due to lower exports and weaker demand from export-focused sectors. Pidilite Industries' key raw material, vinyl acetate monomer, continued to decline materially to ~$1,150/tonne from $2,250/tonne in Q1 FY23. Consequently, the gross profit margin expanded 730 bp YoY/220 bp QoQ in Q1 FY24. However, the company’s advertising and promotion spends rose to 3.6% of sales (from 2.1% in Q1 FY23). As a result, Ebitda margin expanded to 450 bp YoY to 21.6% in Q1 FY24.Management indicated a double-digit growth in both urban and rural markets. Rural market has outpaced urban consistently. Although the sharp reduction in raw material cost could lead to healthy earnings growth over FY23-FY25, expensive valuations compel us to reiterate our 'Neutral' rating on the stock..Click on the attachment to read the full report:.PI Industries Q1 Results Review - CSM Business Continues Its Healthy Growth Momentum: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Pidilite Industries Q1 Results Review - Inline Performance; Margin Outlook Improves: Motilal Oswal

Management indicated a double-digit growth in both urban and rural markets.

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Pidilite Industries Q1 Results Review - Inline Performance; Margin Outlook Improves: Motilal Oswal

Management indicated a double-digit growth in both urban and rural markets.

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