Pidilite Industries climbs 6% as Q4 results beat estimates

NEW DELHI: Shares of Adhesives and industrial chemicals manufacturer Pidilite Industries rose 6 per cent after the company reported a 48.97 per cent jump in standalone net profit to Rs 115.04 crore for the March quarter. The company had posted a net profit of Rs 77.22 crore for the same period last year.

Following the development, the stock rose 5.97 per cent to close at Rs 653.35 on BSE.

“Pidilite’s Q4FY16 revenue, Ebitda and PAT growth were much ahead of estimates. We remain positive on Pidilite in view of sharp margin expansion and gradual urban demand recovery in H2FY17,” said Edelweiss Securities in a note.

The company said its income from operations rose 12.26 per cent to Rs 1,086.91 crore during the fourth quarter, compared with Rs 968.13 crore in the year-ago quarter. The company is seen benefitting from a recovery in discretionary spending as urban recovery plays out, GDP revives and industrial investment gathers pace.

At the prevailing market price, the stock is trading at a PE of 29.5 times FY18E.