Pidilite Industries Q3 Results Review - Strong Growth Visibility; Upgrade To 'Accumulate': Prabhudas Lilladher

"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..Prabhudas Lilladher Report.We cut our FY25/26 earnings per share estimates by 2.7%/4.2% as Pidilite Industries Ltd. will have just 60 basis points margin expansion and double digit topline growth in a volume growth and innovation led strategy. Pidilite continues to grow strongly in tier III/rural ahead of urban by increasing distribution and awareness of its products. The company has taken high single-digit price cut since March23 (~6% in Q3 FY24) to sustained volume growth and ward of competition. Pidilite aims at growing at 1.5 times gross domestic product growth in volumes led by-rising construction activity and government capex,rising share of growth and pioneer categories (45% of sales now),sustained innovation across segments andgains from deeper distribution reach/awareness and usage in all emerging construction aids. We estimate 25% earnings per share compound annual growth rate over FY23-26 and assign discounted cash flow based target price of Rs 2704 (Rs 2704 earlier). Although we expect moderate returns in near term given premium valuations (51.2 times FY26 EPS), we upgrade the stock to 'Accumulate'. We believe Pidilite provides a better medium term opportunity than Asian Paints Ltd..Click on the attachment to read the full report:.Pidilite Industries Q3 Results: Profit Rises 66%.DISCLAIMERThis 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."

Pidilite Industries Q3 Results Review - Strong Growth Visibility; Upgrade To 'Accumulate': Prabhudas Lilladher

Rural continues to grow ahead of urban led by rising availability, distribution and awareness about Pidilite’s products

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Pidilite Industries Q3 Results Review - Strong Growth Visibility; Upgrade To 'Accumulate': Prabhudas Lilladher

Rural continues to grow ahead of urban led by rising availability, distribution and awareness about Pidilite’s products

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