Pidilite Industries Q4 Results Review - Margins Drop Sequentially; Maintain Accumulate: Dolat Capital

Dolat Capital Report

Pidilite Industries Ltd.’s Q4 FY24 revenue was in-line our estimates. Revenues grew by 7.9% representing a four-year compound annual growthr ate of 17.1%. Consumer and bazaar segment posted 6.4% growth, while B2B segment grew by 11.7%. Domestic business reported 8.7% YoY growth with 15.2% underlying volume growth.

As Vinyl Acetate Monomer prices moderated, gross margin improved 660 bps YoY. We believe that with current VAM prices, margins would remain in the range of 20-24%.

We have downward revised our FY25 EPS estimates by 4.8% at Rs 40.3 to factor in Q4 performance and near-term challenges, however maintained FY26E EPS at Rs 46.3.

In the long run, the company’s strong brand portfolio and wide distribution reach would help accelerate growth. With high growth potential and leadership, Pidilite deserves high valuations. Target price upgraded at 3,006 (65 times FY26E EPS). Accumulate. Buy on dips.

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.