Pidilite Industries Ltd.

October 15, 2016 . Equities Desk

Innovation led growth to intensify…

Pidilite Industries Ltd. is a pioneer in consumer and speciality chemicals in India. The company has a diversified product portfolio including adhesives and sealants, construction chemicals, hobby colours and polymer emulsions, among others.

Valuation & View

With strong brand recall, superior pricing power and distribution reach, we believe Pidilite is a strong play on recovery in discretionary spending. We expect revenue and PAT to grow at a CAGR of 16% and 17% respectively over FY16-FY18E. We initiate coverage on the stock with a BUY rating with a target price of Rs811 (FY18E P/E of 40x).

Research Report Pidilite Industries Ltd

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