Buy Pidilite Industries: target of Rs 1875: Sharekhan

Sharekhan's research repor on Pidilite Industries

Pidilite Industries’ (Pidilite’s) Q2FY2021 performance was boosted by a strong recovery in the domestic consumer bazaar business (up 7.3%) and OPM expansion of 603 bps to 22.6%. Consolidated revenues and PBT grew by 4% and 27% beating ours as well as the street’s expectations. With intensity of the COVID-19 virus receding, the domestic consumer business is expected to post better growth in the coming quarters, while the B2B business is expected to reach pre-COVID levels in H2. International markets such as America, Middle East, Africa and Asia posted a recovery.

Outlook

Acquisition of Araldite brand strengthens commanding position in domestic adhesives space. We maintain a Buy on the stock with a revised PT of Rs. 1,875.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More