I-Sec maintains Add call on Pidilite Industries, lowers target price to Rs 3,123

ICICI Securities has maintained its Add call on Pidilite Industries with a lowered target price of Rs 3,123 (earlier Rs 3,215). The current market price of Pidilite is Rs 2745.85. Pidilite Industries, incorporated in 1969, is a Large Cap company with a market cap of Rs 139819.17 crore, operating in Diversified sector.

Pidilite Industries' key products/revenue segments include Chemical Product, Scrap, Other Operating Revenue, Export Incentives and Sale of services for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 3424.69 crore, up 4.03% from last quarter Total Income of Rs 3292.03 Crore and up 8.14% from last year same quarter Total Income of Rs 3166.97 crore. The company has reported net profit after tax of Rs 557.53 crore in the latest quarter.

The company's top management includes Mr.M B Parekh, Mr.A N Parekh, Mr.A B Parekh, Mr.Bharat Puri, Mr.Sudhanshu Vats, Mr.Kavinder Singh, Mr.Sandeep Batra, Mr.Joseph Varghese, Mr.Meher Pudumjee, Mr.Rajeev Vasudeva, Mr.Sanjeev Aga, Mrs.Meera Shankar, Mr.Vinod Dasari, Mr.Piyush Pandey, Mr.Murali Sivaraman, Mr.Rajeev Gupta, Mr.M B Parekh, Mr.J S Deepak, Mr.A N Parekh, Mr.A B Parekh, Mr.Bharat Puri, Mr.Sudhanshu Vats, Mr.Kavinder Singh, Mr.Sandeep Batra, Mr.Joseph Varghese, Mr.Meher Pudumjee, Mr.Rajeev Vasudeva, Mr.Sanjeev Aga, Mrs.Meera Shankar, Mr.Vinod Dasari, Mr.Piyush Pandey, Mr.Murali Sivaraman, Mr.Rajeev Gupta, Mr.J S Deepak. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2024, the company has a total of 51 Crore shares outstanding.

Investment Rationale
ICICI Securities continues to like Pidilite Industries due to its innovative, comprehensive product portfolio with strong branding and wide distribution reach. We believe PIDI has near-term demand tailwinds due to healthy real estate market along with benign raw material prices. The brokerage has tweaked PAT for FY26-27E by 2%/3% and maintain ADD with a revised Dec?25E target price of Rs 3,123 (earlier Rs 3,215).
Key risks are: Slowdown in housing activity will likely result in lower-than-expected earnings. Any sharp rise in raw material prices could affect profitability/demand. Subdued performance in international subsidiaries.

Promoter/FII Holdings
Promoters held 69.6 per cent stake in the company as of 31-Dec-2024, while FIIs owned 11.79 per cent, DIIs 9.14 per cent.