Neutral on Pidilite Industries, target price Rs 1605: Motilal Oswal

Motilal Oswal Financial Services has neutral call on Pidilite Industries with a target price of Rs 1605. The current market price of Pidilite Industries Ltd. is Rs 1738.5.

Pidilite Industries Ltd., incorporated in the year 1969, is a Large Cap company (having a market cap of Rs 88210.86 Crore) operating in Diversified sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1880.33 Crore, up 114.20 % from last quarter Sales of Rs 877.84 Crore and up 4.08 % from last year same quarter Sales of Rs 1806.58 Crore Company reported net profit after tax of Rs 355.83 Crore in latest quarter.

Investment Rationale
The brokerage maintains Neutral, with TP of INR 1,605 (55x Dec’22E EPS)

Promoter/FII Holdings
Promoters held 70.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 10.9 per cent, DIIs 8.7 per cent and public and others 10.2 per cent.