Further rise in raw material prices could impact near term margins
The overall trend in paints stocks is still bullish with mild profit-booking.
For this week, 11,500 - 11,600 has now become an important support zone
Flipkart, Pantaloons and Pidilite are emerging names in furniture retail, keen on making headway in a fragmented market
The firm is strong in industrial adhesives, providing solutions to sectors such as automotive, metals, packaging and aerospace
Cheaper VAM to help post Ebitda margin of 20-22%, but pricey valuation leaves no room to disappoint investors
Trading calls by Jay Anand Thakkar, CMT -Assistant Vice President - Equity Research, Anand Rathi Shares and Stock Brokers
Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor
Competitive intensity, slowdown in construction activities and liquidity issues could make volume recovery difficult
Net profit surged by 22%, driven by 10% rise in revenue and 119 basis point jump in operating profit margin to 22%
While there are growth levers, near-term volumes have remained under pressure
Decline in cost of key raw material, favourable Rs-$ rate and price hikes of products set to enhance profitability
After Q2FY19, analysts had cut their earnings estimates of consumer firms, amid higher input costs on the back of high oil prices and a weakening Rupee
Pidilite Industries Limited, a leading manufacturer of adhesives, sealants and construction chemicals, announced its financial results for the quarter and half year, which ended on September 30.Net sales were recorded at Rs 1,748 crore, witnessing a 15 per cent growth over the same quarter last year. Comparable net sales for the half year stood at Rs 3,566 crore and grew by 20 per cent (excluding the sales of Cyclo Division of Pidilite USA Inc which was sold by Pidilite USA Inc in June 2017) over the same period last year.EBITDA (Earnings before interest, tax, depreciation and amortisation) before non-operating income stood at Rs 370 crore and declined by 2 per cent over the same quarter last year, given the input cost led contraction in gross margins by over 3 per cent and higher A&SP spends. EBITDA for the half year stood at Rs 754 crore and grew by 8 per cent over the same period last year, given the input cost led contraction in gross margins by over 2 per cent and higher ...
Improving demand shows growth potential but high input cost and weak rupee may spoil the show
Focus on growth in core adhesives business, water-proofing and innovations to aid prospects