Pidilite Industries share price surges 9% after Q3 result; details here

Pidilite Industries share price surged almost 9 per cent in morning trade on the BSE on Thursday, January 23, a day after the company reported its December quarter (Q3) results. Pidilite shares opened at ₹2,792.60 against its previous close of ₹2,754.20 and jumped 8.7 per cent to the intraday high of ₹2,992.70. Around 10:20 AM, the stock traded 8.5 per cent higher at ₹2,988.

Pidilite Industries Q3 result

Pidilite Industries on Wednesday, January 22, said its consolidated net sales rose 9 per cent year-on-year (YoY) to ₹3,357 crore in Q3FY25. This number excluded Pidilite USA and Pulvitec Brazil.

Profit after tax (PAT) for the quarter under review stood at ₹557 crore, up 9 per cent over the same quarter last year. EBITDA before non-operating income came at ₹798 crore, increasing 8 per cent YoY.

On a standalone basis, the company's net sales grew 9 per cent YoY to ₹3,085 crore, PAT rose 2 per cent YoY to ₹ 535 crore and EBITDA before non-operating income grew by 6 per cent YoY to ₹749 crore.

“Despite subdued demand across urban and rural geographies, we continued to make steady progress, with robust revenue and underlying volume growth and healthy levels of profitability," said Bharat Puri, Managing Director, Pidilite Industries.

"Looking ahead, we remain cautiously optimistic about improved demand conditions as a result of the good monsoon and increased construction activities. We remain committed to our strategic agenda of delivering consistent, profitable volume-led growth through investment in our brands, supply chain and people,” Puri said.

What top brokerages say?

Pidilite will hold an earnings conference call on January 23 which will offer more insights about the growth trajectory of the company.

Noting the Q3 performance, brokerage firm Nuvama Wealth Management maintained a buy call on the stock, adding it will revisit its estimates and target price after the earnings conference call.

Nuvama observed that Pidilite delivered a decent performance in Q3FY25. Its revenue and EBITDA were in line with the brokerages' and consensus estimates.

Nuvama further underscored the company's "overall volume growth was 9.7 per cent YoY. C&B (consumer and bazaar) volumes grew by 7.3 per cent YoY. The B2B (business-to-business) segment maintained its growth trajectory, with volumes surging 21.7 per cent YoY, fuelled by industrial and project verticals. Gross margin expanded 145bp YoY, whereas EBITDA margin remained flat YoY. Input costs remained benign during the quarter."

Brokerage firm Motilal Oswal Financial Services has a "neutral" view of the stock.

"The company remains cautiously optimistic about improved demand from a good monsoon and increased construction activities. Its focus remains on driving profitable, volume-led growth through brand, supply chain, and people investments," Motilal Oswal said.

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