Kotak raises fair value on India's Pidilite; shares up

Pidilite Industries

18/03/2024 07:52

** Shares of adhesive maker Pidilite Industries  PIDI.NS  up
2.8%; brokerage Kotak upbeat on FY25 growth prospects
    ** Reiterates "Add" rating, raises fair value to 3,075
rupees from 2,825 rupees earlier 
    ** FV among street highs - at 7% premium on last close, 11%
higher than analysts' avg of 2,764 rupees, per LSEG data 
    ** In FY25, real estate upcycle can accelerate growth for
PIDI's core adhesives biz which accounts for its 45%-50% sales -
Kotak 
    ** Says PIDI's profitability is placed well after taking
price cuts and doubling promotional and advertising spends 
    ** Adds urban shift towards organised construction and
rising spends on home decor augur well for co
    ** Stock has gained ~17% in current fiscal, peer BASF
 BASF.NS  up ~42% while SRF  SRFL.NS  rose ~1%, per last close 



 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))