Pidilite Industries shares are trading higher than the 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages Shares of Fevicol maker Pidilite Industries Ltd were trading flat in the afternoon session today after the firm announced earnings for the March quarter and the fiscal gone by. The stock fell 0.10% to Rs 2448.80 on BSE. The stock has climbed 11% in the last six sessions. Total 1.35 lakh shares of the firm changed hands amounting to a turnover of Rs 5.05 crore on BSE. Market cap of the firm rose to Rs 53,250 crore on BSE. The stock hit a 52-week low of Rs 207.25 on June 20, 2022.
In terms of technicals, the relative strength index (RSI) of the stock stands at 61, signaling it's trading neither in the overbought or oversold zone. Pidilite shares have a beta of 0.6, indicating very low volatility in a year. The stock is trading higher than the 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages. The stock has lost 4 percent in 2023 and gained 11.35% in a year.
Pidilite reported a 12.4% rise in net profit to Rs 286 crore in Q4 of the last fiscal. EBITDA rose 14.5% to Rs 459 crore in Q4 against Rs 401 crore in the March quarter of 2022.
The firm logged a 7.27% rise in sales to Rs 2674 crore in the March 2023 quarter against Rs 2507 crore in the March 2022 quarter.
On an annual basis, net profit zoomed 6.8% to Rs 1289 crore for the fiscal ended March 2023. Sales climbed19% to Rs 11,799 crore in the March 2023 fiscal against Rs 9920 crore for the fiscal ended March 2022.
The Board of Directors proposed a final dividend of Rs 11 Per share (Dividend Payout at 44.5%), subject to approval of shareholders at the AGM.
The firm said, “Despite the challenging environment on both the demand as well as input cost fronts throughout the year, we have delivered robust value and volume growth across our businesses in geographies with revenue crossing Rs. 11,000 crore for the first time. Growth was broad based across Consumer and Bazaar ('C&B') and Business to Business ('B2B') segments with Domestic C&B reporting growth in excess of 20%.”
Amnish Aggarwal – Head of Research, Prabhudas Lilladher said, "Pidilite posted revenue growth of 7.3% led by healthy domestic demand with C&B volume growth of 7%. Gross margins bounced back sharply with fall in VAM prices which enabled higher ad spends behind brands. VAM prices have dropped sharply starting from 2Q23 and spot VAM prices trade at USD 930/MT (-62% from peak). We expect margins to bounce back from 1Q24 and currently factor in FY23-25 EPS CAGR of 37%. We have a Hold rating on the stock with a target price of Rs 2500. The stock currently trades at 49.4x FY25 EPS."
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher has assigned a target price of Rs 2,650 with a stop loss of Rs 2,350. "Pidilite Industries has been in a gradual correction phase. After a recent rally, it has made a higher bottom formation pattern on the daily chart. We anticipate the stock to move strongly in the upward direction. The RSI has also indicated a trend reversal, signalling a buy. With decent volume participation, one can buy this stock for an upside target of Rs 2,650, keeping a stop loss at Rs 2,350," said Parekh.