Pidilite Industries jumps over 6% as Goldman Sachs upgrades stock to 'Buy' from 'Sell'

Pidilite Industries share price: Shares of Pidilite Industries jumped as much as 7.12 per cent to hit the day's high of Rs 2,478.95 apiece on the BSE on Tuesday, October 31, after global brokerage firm Goldman Sachs upgraded the stock to "buy" from "sell." It has also revised the target price to Rs 2,725 from Rs 2,325 earlier.
 
The brokerage believes that the stock's earnings downgrade cycle is a thing of the past and that the company is poised for strong growth on the back of new products and paint segments. The company is continuously expanding its distribution network, Goldman Sachs notes.

The brokerage has increased the company's earnings estimates for FY25/26 by 4 per cent / 8 per cent. It also expects a strong recovery in margins. It sees margins for FY26 at 23.1 per cent against 16.7 per cent seen in FY23.

The stock finally ended at Rs 2,458.25, up 6.23 per cent on the BSE.

Pidilite Industries Q1 Results 

The company reported a consolidated net profit of Rs 468.2 crore for the April-June period, in line with analysts' estimates. The quarterly net profit of the Mumbai-based company — whose popular brands include Fevicol, Dr Fixit and M-Seal — increased 32.4 per cent compared with the corresponding period a year ago. 

The company's revenue came in at Rs 3,275.1 crore for the first quarter of the current financial year, as against Rs 3,101.1 crore for the year-ago period, according to a regulatory filing.

Pidilite said the revenue was underpinned by strong growth in volumes.  

Pidilite's margin — a key measure of a company's profitability — improved to 21.6 per cent for the June quarter from 17 per cent a year ago. READ MORE