Pidilite Industries Ltd - Q2 FY21 Result Update - YES Securities

Pidilite Ltd (Q2 FY21) - (CMP Rs1,597, MCap Rs811bn)

Result highlights - +3.4% revenue growth with +39.3% growth in EBITDA on cost optimization measures, lower A&P spends with margins up 690 bps due to 250 bps in GMs. Lower other income and tax reversal last year led to PAT growth of +9.7%.

Valuation & View - Pidilite is currently trading at rich multiples of 50x FY23 earnings which we believe factors in its dominant positioning in the industry and a track record of successful inorganic growth and innovations. While the premium multiples can sustain given low competition and strong margin outlook, we do not see a case for further upside from current levels in the near-term.

YES Securities - Pidilite Ltd (Q2 FY21) - 20201109

Shares of PIDILITE INDUSTRIES LTD. was last trading in BSE at Rs.1595.55 as compared to the previous close of Rs. 1595.55. The total number of shares traded during the day was 20326 in over 2045 trades.

The stock hit an intraday high of Rs. 1608.8 and intraday low of 1586.75. The net turnover during the day was Rs. 32436296.

Source : Equity Bulls

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