Accumulate Pidilite Industries - Dolat Capital

- Pidilite, a proxy on housing, construction and other industrial activity has over the years successfully converted niche commodity category into strong brands.

- Company is now extending its strategy in construction chemicals with its brand Dr Fixit. The construction chemical segment provides a huge opportunity and Pidilite with a focus on retail segment for water proofing solutions is well placed to take advantage of this opportunity.

- We believe that operating performance would improve as raw material cost has softened

- Uncertainty with respect to elastomer project is expected to get cleared in the FY13 which has been an overhang on the stock.

- We estimate a Revenue and PAT CAGR of 17.5% and 24% respectively during FY12-15E. The stock trades at 22x FY14E EPS of Rs.9.8 and 18x FY15E EPS of Rs.11.7.

Source : Equity Bulls

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