BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Pidilite Industries Ltd.'s sales in Q4 FY22 were in line. Its revenue performance was commendable, given the Covid-19 led disruptions in January 2022 and a high base of 44.7% in Q4 FY21.
Two/three-year compound annual growth rate was also healthy at 27.5%/15.2%.
Higher than expected raw material prices eroded gross margin, resulting in a significant miss on Ebitda in Q4 FY22.
While some price hikes were taken in May 2022, Pidilite's management expects vinyl acetate monomer prices to remain elevated over the next three-to-four months before softening in H2 FY23.
The rich multiple of 57 times FY24E earnings per share adequately captures the stock’s fair .
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