Pidilite Industries shares: Mixed views from brokerages on Q4 earnings

Shares of Pidilite Industries rose nearly 4% on Monday post Q4 earnings. Pidilite Industries shares gained 3.65% to Rs Rs 3,085.60 on May 12. Total 4653 shares of the firm changed hands amounting to a turnover of Rs 1.42 crore on BSE. Market cap of the firm climbed to Rs 1.56 lakh crore on BSE. The stock hit a 52-week low of Rs 2620.15 on March 3, 2025 and rose to a 52 week high of Rs 3414 on September 30, 2024.  

The earnings were announced on May 8 after market hours. 

Here's a look at what brokerages say post Q4 earnings report. 

Analysts from Motilal Oswal maintained a ‘Neutral’ rating on the stock, setting a target price of Rs 3,000 per share due to high valuations. On the other hand, UBS has issued a ‘Buy’ call, targeting a price of Rs 3,600.

According to UBS analysts, the management is optimistic about consumer demand and aims for double-digit volume growth that is profitable in FY26. The firm also highlighted strong opportunities in both the residential and commercial construction sectors, as well as in the growing paints business.

Adjusting for the increased staff expenses and advertising costs, Nuvama has reduced its earnings per share estimates by 4 percent each. This adjustment, along with a valuation rollover, leads them to maintain a ‘Buy’ rating with a revised target price of Rs 3,645, down from Rs 3,660.

Goldman Sachs has also given a ‘Buy’ recommendation for Pidilite, setting a target price of Rs 3,475 per share, citing robust near double-digit volume growth despite a challenging macro environment. They noted that the B2B segment is likely to continue its strong momentum over the next two to three years.

The company reported an 8 percent year-on-year growth in consolidated revenue for the quarter ending in March, with profits recorded at Rs 1,550.3 crore. Additionally, the gross margins improved by 160 basis points year-on-year, bolstered by stable raw material prices.

The EBITDA margin rose by 30 basis points to 20.1 percent, while EBITDA itself climbed by 9.6 percent year-on-year, though it fell short of market expectations due to a one-time expense of Rs 17 crore relating to higher staff costs.

Despite price reductions having a slight effect, the company successfully bridged the gap between value and volume. Looking ahead, management is concentrating on revenue growth through increased volume.

The current macroeconomic climate is a critical factor to monitor. Urban demand has shown improvement sequentially, although rural growth continues to outstrip urban levels. The B2B segment is anticipated to maintain low to mid-teen growth over the medium term.