Pidilite Industries
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Pidilite Industries is positioned for stable growth, driven by strong volume momentum in its Consumer & Bazaar segment and successful expansion into premium categories. Management's ability to implement price hikes amidst rising input costs has been crucial, although caution remains regarding near-term margin volatility due to geopolitical risks and high-cost inventory. Vista's financial outlook reflects expectations of consistent revenue growth, with margins projected to improve as operational efficiencies are realized. The company's disciplined capital allocation strategy and focus on innovation further support its competitive position. However, ongoing geopolitical tensions and competitive pressures from adjacent players pose risks to margin stability. Overall, the outlook remains positive, bolstered by healthy demand in housing and renovation sectors, while the company navigates potential headwinds from global commodity price fluctuations. Over the next 12-24 months, key opportunities include expanding into high-growth categories like tile adhesives and specialized electronics adhesives, while watchpoints include managing input cost volatility and geopolitical risks that could impact margins
Why We Like This Stock
- Strong volume growth in the Consumer & Bazaar segment indicates robust demand and market leadership
- Successful implementation of price hikes has helped maintain margins despite rising input costs
- Strategic focus on premium product categories and innovation supports long-term growth potential
Things To Watch Out For
- Geopolitical tensions may impact export volumes and introduce margin volatility
- Competitive pressures from adjacent industry players could challenge market share and pricing power
- High-cost inventory poses risks to near-term margin performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 12,383 | 13,140 | 14,601 | 16,191 | 18,335 |
| Profit Before Tax (Cr.) | 2,452 | 2,846 | 3,334 | 3,828 | 4,259 |
| PBT Margin | 19.8% | 21.7% | 2283.4% | 23.6% | 23.2% |
| Net Profit (Cr.) | 1,793 | 2,127 | 2,754 | 2,836 | 3,131 |
| Earnings Per Share | 17.4 | 20.7 | 26.8 | 27.6 | 30.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BofA | ▼ Reduce | 1,475 | 11-May-2026 |
| Goldman Sachs | ▲ Buy | 1,700 | 05-Aug-2026 |
| HSBC | ▲ Buy | 1,890 | 15-Jul-2026 |
| JPMorgan | ▲ Buy | 1,630 | 11-Jun-2026 |
| Jeffries | ► Hold | 1,610 | 05-Aug-2026 |
| Kotak Securities | ► Add | 1,650 | 17-Jun-2026 |
| Macguire | ▼ Underperform | 1,350 | 05-Aug-2026 |
| Moneycontrol | ► Equalweight | nan | 06-Aug-2026 |
| Motilal Oswal | ► Neutral | 1,700 | 06-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 1,739 | 06-Aug-2026 |
Company Overview
Show Company Profile
Pidilite Industries Limited, together with its subsidiaries, engages in the manufacture and sale of various chemicals in India and internationally. The company operates through the Consumer & Bazaar, and Business to Business segments. The Consumer & Bazaar segment offers adhesives, sealants, art and craft materials; and construction and paint chemicals for carpenters, painters, plumbers, mechanics, households, students, and offices. The Business to Business segment provides industrial adhesives, synthetic resins, construction chemicals, organic pigments, pigment preparations, and surfactants for various industries, including packaging, joineries, textiles, paints, printing inks, paper, and leather. It is also involved in the sale of raw materials. The company sells its products under the Fevicol, Fevicol MR, Dr. Fixit, Fevikwik, M-Seal, Fevistick, Fevicryl, Fevigum, Rangeela, WD-40, MOTO MAX, Terminator, WUDFIN, HAI SHA, steelgrip, Araldite, Roff, TENAX, UNITINT, fevitite, HOLDTITE LEAKGUARD, D-klog, Zorrik-88, Stainoff, BRITE-SUPER, Piditint, Fevibond, FALCOFIX, and BLUECOAT brands. Pidilite Industries Limited was founded in 1959 and is based in Mumbai, India.