Result Update: Pidilite Industries Ltd - Sell - TP Rs.660 - Kotak

PIL reported Q4FY17 results in line with our estimates; firming up of input prices (other than VAM) led to margin contraction on sequential basis. International business and other subsidiaries including Nina waterproofing and ICA woodworks reported meaningful revenue growth.

We believe that currently at PER of 36x FY19 earnings, company's stock is trading expensive and fully discounts the benefits of lower raw material prices and potential recovery in B2B and B2C businesses going ahead. We roll forward target price on FY19 and value PIL stock at PER 32x FY19 earnings (35x FY18 earlier) and maintain 'Sell' recommendation with revised target price of Rs 660 (Rs 650 earlier).

Shares of PIDILITE INDUSTRIES LTD. was last trading in BSE at Rs.763.05 as compared to the previous close of Rs. 738.35. The total number of shares traded during the day was 38819 in over 1378 trades.

The stock hit an intraday high of Rs. 770 and intraday low of 738.45. The net turnover during the day was Rs. 29545518.

Source : Equity Bulls

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