Pidilite Industries- 3QFY17 Result Update - Decent Performance in Challenging Environment - Reliance Securities

Notwithstanding the impact of demonetisation on near term business growth, we continue to remain positive on the long-term growth prospects of Pidilite due to strong brands, market leadership and management pedigree. We expect Pidilite to report consolidated sales of Rs65.8bn and Rs75.4bn and net profit of Rs10bn and Rs11.6bn in FY18E and FY19E, respectively. Based on expected EPS of Rs22.7, the stock currently trades at P/E multiple of 29.6x FY19E earnings. We maintain our BUY recommendation on the stock with an unrevised Target Price of Rs832, based on 38x Dec'18 earnings.

Shares of PIDILITE INDUSTRIES LTD. was last trading in BSE at Rs.673.15 as compared to the previous close of Rs. 676.7. The total number of shares traded during the day was 37136 in over 1946 trades.

The stock hit an intraday high of Rs. 678.6 and intraday low of 665.1. The net turnover during the day was Rs. 24929247.

Source : Equity Bulls

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