PIDILITE VIEW

Buy at CMP 1023 for Target of 1090 to 1195, Time frame - 5 months to 18 Months, SL - 955

​1) Pidilite Industries Ltd's Q3FY18 consolidated net profit rises 17.32% yoy to Rs237.04cr,

2) Standalonene net sales were up 20% with underlying volume up 22% yoy and Consolidated Revenue For Q3FY18 Came In At Rs1,542.90cr, An Increase By 15.6% Yoy. 

3) Pidilite Industries is going to acquire 70 per cent equity stake in CIPY Polyurethanes for ₹96.4 crore. The acquisition would enable Pidilite Industries to participate in the growth of the resin flooring and floor coatings market. CIPY Polyurethanes is engaged in the business of manufacture and sale of floor coatings using polyurethanes, epoxies, polyurea and polyaspartic polymers. 

4) Exports to more than 80 countries , Major exports to Middle east, Africa , USA & Europe - Total revenue from overseas subsideries of 599 Cr in FY 17

5) Pidilite Industries collaborates with Germany’s Jowat SE for sale and distribution in India on March 2018 and will handle sales and distribution of the entire range of Jowat adhesives in India and other neighbouring countries like Sri Lanka, Bangladesh and Nepal, as a part of the collaboration.

6) Pickup in consumer demand and new product launches would drive growth in India consumer bazaar segment. The company is strongly focusing on double-digit volume growth in 2HFY18. We expect the company to register 16% earnings CAGR over FY17-20E.The stock is trading at 36.5x FY20E EPS

7) Pidilite is the largest adhesive player in India, with its iconic brand 'Fevicol'. Pidilite has considerable pricing power in its consumer & bazaar products business which accounts for ~84% of its revenue.

8)Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and specialities chemicals in India.

9) Pidilite Industries has entered into the league of corporate entities with a market value of over Rs 500 billion on Jan 2018

The high market share is attributable to a wide range of high quality products and a strong dealer network. The Company operates through 15 overseas subsidiaries, 19 manufacturing facilities in India and international manufacturing facilities in Thailand, Singapore, Dubai, Brazil, US, Egypt and Bangladesh.  The Company exports to more than 80 countries. In addition, Pidilite is constantly adding new products and dealers to maintain its market share. The Company has introduced several new product brands like Woodlok, Roff, and Smartcare catering to construction, healthcare and hospitality segments.

Retail Network & Distribution

Pidilite has a robust distribution network of more than 4,000 distributors servicing more than 400,000 dealers/retailers and 4,000 industrial customers. Pidilite has created strong relations with the intermediaries like contractors, carpenters, plumbers, painters, ensuring customer stickiness. Pidilite enjoys strong pricing power due to its diversified product mix, prominent brands and extensive distribution network. 

Flourishing International Operations

Pidilite has considerable presence in the global markets with 15 overseas subsidiaries including those having manufacturing and selling operations in USA, Brazil, Thailand, Dubai, Egypt and Bangladesh.

Disclaimer: This blog owner  is not a SEBI registered. I m just sharing my opinion only as an Investor cum trader.I m not responsible for any of your profit/loss with this blog's suggestion. Consult ur financial advisor before taking any decision.