MOSL: PIDILITE INDUSTRIES (Neutral)-Weak demand, liquidity concerns cast a pall on near-term growth
PIDILITE INDUSTRIES: Weak demand, liquidity concerns cast a pall on near-term growth
(PIDI IN, Mkt Cap USD9.5b, CMP INR1338, TP INR1354, 1% Upside, Neutral)
- Consolidated net sales grew 2.8% YoY to INR18.1b (v/s est. INR20.2b). EBITDA stood flat YoY at INR3.7b (v/s est. INR4.6b). PBT grew 5% YoY to INR3.8b (v/s est. INR4.5b). Adj. PAT grew 48.2% YoY to INR3.5b (v/s est. INR3.1b).
- Consolidated C&B segment revenues grew 1.6% YoY to INR15.4b, (1% decline in volumes) with Segmental EBIT margin expanding 110bp YoY to 25.3%. Industrial segment grew 14.3% to INR2.9b and margins expanded 150bp YoY.
- Gross margins expanded 400bp YoY to 53.4%. Higher other expenses (+310bp YoY), attributed to higher ad-spends and higher employee costs (+140bp YoY), meant that EBITDA margin contracted by 50bp YoY to 20.4% (v/s est. 22.8%).
Pidilite Industries is engaged in the manufacturing and selling of consumer and bazaar products and speciality industrial chemical. Co.'s business is divided into three major segments: consumer & bazaar products, industrial products and other segments. Consumer & bazaar products consist of mainly adhesives, sealants, art materials and construction chemicals. Industrial products consists of organic pigments, industrial resins and industrial adhesives. Other segments consist of VAM manufacturing unit of Vinyl Chemicals (India) Ltd.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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