Despite the strong execution capabilities of the management, we remain wary of the Pidilite stock due to its premium valuations
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Fevicol-maker Pidilite Industries showed strong growth in the June quarter, flexing their market leadership. Margins were under pressure, but the management offered reassurance towards normalization in coming quarters. Key result highlights For Q1 FY22, net sales came in at Rs 1,937 crores, more than double the year ago period, as last year’s quarter was heavily pressured by the coronavirus. The underlying revenue growth on a like-for-like basis stood at 113 per cent, after adjusting for the acquisition of Huntsman Advanced Materials…
