Revival in volumes to led growth
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: We maintain our positive stance on the stock given its strong brand portfolio and potential market share gains due to implementation of GST. We expect the company to clock overall revenue CAGR of ~13% over FY17-20E. We roll over our valuation to FY20 and recommend “BUY” with a revised TP of Rs. 986, based on P/E multiple of 41x.
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