Chemicals · PIDI
Speciality Chemicals
from 1,665 today
PIDI's volume growth trajectory remains encouraging, especially amid a challenging demand environment. Operating margins could contract in the near term owing to cost inflation, but given its market leadership, PIDI is better placed in such an inflationary scenario. We model a CAGR of 15% in revenue and 14% in EBITDA over FY26-28E and reiterate our Neutral rating with a TP of INR1,700.
We increase EPS estimates for FY27/FY28 by 2.5%/9.5% led by healthy demand outlook and lesser than expected margin volatility. We expect steady returns and assign Accumulate rating with a target price of Rs1739.
Pidilite’s Q1FY27 revenue rose 21.3% YoY, coming in line with estimates, while EBITDA rose 27% and came ~14% ahead of estimates. Urban and Rural demand remained resilient, and the report maintains a 'BUY' rating.
Pidilite Industries reported strong consolidated revenue growth of 21% YoY in 1QFY27 with 11% underlying volume growth. Given the limited upside and near-term margin pressure owing to cost inflation, we reiterate our Neutral rating on the stock with a target price of INR1,700.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
