Tag: Pidilite

Pidilite expects stable raw material prices for the next six months and margins between 20-24%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Pidilite fell over 5% on Wednesday, marking their biggest single-day drop in four months after its March quarter results.

The adhesive manufacturer’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹577 crore, lower than the ₹600 crore estimate. EBITDA margin also stood at 19.9%, lower than the estimate of 21.4%.

Net profit for the quarter also stood at ₹304.3 crore from ₹415 crore earlier.

Higher other expenses impacted Pidilite’s operating performance during the quarter. The company made higher investments in brands and customer facing initiatives.

Additionally, it also incurred an exceptional loss of ₹71.7 crore on sale of shares in one of its subsidiary.

The management said that it sees some near-term softness in the business, though it remains optimistic on the company’s medium term prospects.

Among factors that worked for Pidilite during the quarter, revenue beat estimates, consumer business saw volume growth of 12.7% and gross margin saw healthy expansion.

Brokerage firm Citi has a “sell” rating on Pidilite with a price target of ₹2,200. It called the results a miss on all fronts.

Out of the 19 analysts that track Pidilite, eight of them have a “buy” rating on the stock, while seven of them have a “sell” call.

Shares of Pidilite are trading 5% lower at ₹2,806.4. The stock is still up 4% in 2024 so far. This is the biggest single-day drop seen by the stock since January this year.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pidilite Industries and Bajaj Finance are the top holdings of Rahul Gandhi

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Congress leader Rahul Gandhi, who seeks his second consecutive term from Kerala’s Wayanad Lok Sabha seat holds stakes in as many as 24 listed companies, which are currently valued at ₹4.4 crore.

While Pidilite industries and Bajaj Finance are the top holdings with an investment value of over ₹40 lakh each, Asian Paints, Nestle India, Titan, Hindustan Unilever and ICICI Bank are other blue chips in which he has considerable holdings with respect to his overall portfolio, shows affidavit filed with the election commission of India for the 2024 election.

Over the last one year, shares of Pidilite Industries have rallies as much as 29%, whereas the stock of Bajaj Finance also surged similar magnitude with a gain of 28%. Even the benchmark Nifty50 yielded similar returns during the same period.

The affidavit further shows that Gandhi has widely diversified his stock portfolio by picking stocks from varied sectors like consumer staples, Information Technology, Health Care, Industrials and Financials. However, most of his holdings are in blue chips with nearly half or 11 stocks form part of the benchmark Nifty50.

From the Nifty pack, Gandhi owns three of the six software stocks – LTIMindtree, Infosys and Tata Consultancy Services—with a combined valuation of ₹42 lakh. Among the Tata group-owned companies, other than TCS, he also held stake in Titan Company.

Further, Rahul Gandhi also held 52 Non-convertible debentures (NCD) of Britannia Industries and mutual fund schemes of HDFC AMC, ICICI Prudential Mutual Fund and PPFAS Mutual Fund. The total investment in mutual funds is valued at ₹3.81 crore.

Among other movable assets, Gandhi has ₹55,000 in cash, ₹26.25 lakh in bank savings, ₹1.90 lakh in debentures and ₹15.21 lakh in sovereign Gold Bonds. Other investments in postal savings, insurance and PPFs stands at ₹61.52 lakh.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pidilite launches Fevikwik Gel, Neeraj Chopra joins Visa team for 2024 Olympics

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pidilite Industries, a leading manufacturer of construction, specialty chemicals and art and craft products has launched its new product Fevikwik Gel.

Speaking to Shibani Gharat, Manish Dubey, chief marketing officer (CMO) of Pidilite Industries explained, “This adhesive is incredibly fast-acting; it adheres instantly upon application. We have listened to consumer feedback and aimed to empower them by offering a solution that allows for adjustments. Essentially, this innovative product provides a 30-second window for readjustments. Whether it’s aligning digits, securing a bag, or correcting any minor misalignments, users have the flexibility to reset for up to 30 seconds. Our campaign slogan reflects this: ‘Galti Sudharne ka Mauka De’.

Visa Inc., a global leader in digital payments, has signed up Olympic gold medalist and Javelin world champion Neeraj Chopra as a Team Visa athlete in preparation for the 2024 Olympic Games in Paris. Chopra joins badminton superstar PV Sindhu as the second Indian athlete to join Team Visa, alongside other global athletes, underscoring Visa’s dedication to and prominence in the world of sports. Sujatha V Kumar of Visa shared insights with Shibani Gharat about Visa’s plans for the Olympics in India and more.

Shibani Gharat engaged in a special discussion with Dilip R.S, Director and Country Manager, Alexa, and Parag Gupta, Director and Country Manager, Amazon Devices India. Amazon India commemorated six years since the launch of Alexa and Echo smart speakers in the country. The duo delved into the journey of the interactive voice assistant Alexa in India.

 Watch this video for more.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PSU Rally: Kotak Institutional Equities says market ignoring three downside risks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Kotak Institutional Equities is finding it difficult to subscribe to the new market narrative surrounding PSUs, which have contributed to the recent rally in these stocks.

It believes that assumptions surrounding the medium-to-long-term growth and profitability of capital goods, electric utilities, financials and oil, gas & consumable fuels is “highly optimistic.”

After a stellar 80% rally in 2023, the PSE index is already up 20% in the first 40 days of the new year.

The brokerage wrote in its note that Capital Goods PSUs may not enjoy high profitability in perpetuity, meaning forever. The sector has seen sharp re-rating in multiples over the last 12 months led by a strong increase in order books and elevated profitability and returns.

“We agree with the brighter prospects of the companies, but believe that the market is underestimating the downside risks in assuming large order inflows for an extended timeframe, and perpetually elevated margin / return profile,” the Kotak note said.

“In our view, government’s three-in-one role of buyer, owner and policy-maker creates uncertainties regarding the companies’ future earnings and returns,” the brokerage note further said.

Kotak cited the example of NTPC, whose current valuation of nearly 2 times price to book value is meaningfully higher than the logical 1.25 times to 1.5 times. It believes that the street is ignoring its likely lower return profile in the long term, given the eventual transition to solar electricity, which will also consume Operating Cash Flow of the extant coal-based plants.

The street is also overestimating the growth opportunity in Power Grid compared to its own growth targets and underestimating the risks to the company’s Return on Equity (RoE) profile from competitive TBCB projects, according to Kotak Institutional Equities.

Another pocket that has witnessed a tearaway rally are Oil Marketing Companies (OMCs), with HPCL BPCL and Indian Oil, all trading at record high levels.

“We are puzzled by the market’s confidence in the same, given the large volatility in marketing margins in the recent past and high sensitivity of Earnings per Share (EPS) to the same,” the note said.

Kotak Institutional Equities has exited from its positions in Power Grid, which was at 190 basis points. It has added Pidilite instead to the model portfolio with a 150 basis points weightage and the remaining 40 basis points are allocated to SBI Life.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pidilite Industries net profit up 66% at ₹510.9 crore, margin improves

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pidilite Industries reported on Tuesday, January 23, revenue of ₹3,130 crore aided by robust underlying volume growth (UVG) of 10.4% across categories and geographies, aided by a moderation in input costs. The revenue, however, came in lower than a CNBC-TV18 poll estimate of ₹3,206 crore.

India’s leading manufacturer of adhesives, sealants, and construction chemicals reported a consolidated profit after tax (PAT) or net profit at ₹510.9 crore for the quarter ended December 31, 2023, beating the CNBC-TV18 poll estimate of ₹495 crore on a year-on-year (YoY) basis. The PAT grew by 66% over the same quarter last year, from ₹307.74 crore.

Pidilite Industries EBITDA for the quarter under consideration came in at ₹742.5 crore, higher than the CNBC-TV18 poll estimate of 725 crore. The margin increased to 23.7% against the poll estimate of 22.5%.

#3QWithCNBCTV18 | Pidilite reports #Q3 earnings

-Revenue at ₹3,130 cr vs CNBC-TV18 poll of ₹3,206 cr (YoY) pic.twitter.com/2WZjGXyC4o

— CNBC-TV18 (@CNBCTV18Live) January 23, 2024

Commenting on the results, Bharat Puri, Managing Director, Pidilite Industries said, “At Pidilite, we delivered another quarter of robust Underlying Volume Growth (‘UVG’) along with substantially improved profitability. Continued moderation in input costs resulted in good improvements in Gross Margins, enabling us to invest behind our brands as well as other growth initiatives. Our growth remained broad-based across categories and geographies. We continue to remain optimistic about market demand in the near term, with increased government spending and the overall improvement in construction activities. We remain committed to deliver volume led profitable growth via investment in our brands, supply chain, digital infrastructure, innovation and customer facing initiatives.”

Pidilite Industries share price settled at ₹2,534.05 apiece on NSE, down 5.36%. The scrip hit the day’s low at ₹2,488.10, falling over 6.5% in intra-day trade.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pidilite Industries tumbles more than 6.5% ahead of third-quarter results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pidilite Industries share price tumbled more than 6.5% in trade on Tuesday, January 23, ahead of Fevicol-maker’s third-quarter results later in the day. Pidilite Industries stock price opened at ₹2,674.90 and hit the day’s low price of ₹2,488.10.

Pidilite Industries Q3FY24 results preview

Pidilite Industries’ revenue is expected to come in at ₹3,206 crore, while net profit is expected to come in at ₹495 crore, as per a CNBC-TV18 poll estimate.

Pidilite is expected to report an expansion in gross margin at approximately 800-1000 basis points year-on-year. The street also expects EBITDA margins to stay in the company’s guided 20–24% band.

#CNBCTV18Market | Pidilite’s #Q3 results are expected to report an expansion in gross margin at approx 800-1000 bps YoY. The street also expects EBITDA margins to stay in co’s guided 20-24% band pic.twitter.com/W3uPWxkYAZ

— CNBC-TV18 (@CNBCTV18Live) January 23, 2024

Pidilite Industries Q2FY24 results

Pidilite reported a 35.7% year-on-year (YoY) jump in net profit at ₹458.5 crore for the second quarter that ended September 30, 2023. The CNBC-TV18 poll had predicted a profit of ₹456 crore for the quarter under review. Pidilite Industries posted a net profit of ₹337.8 crore in the corresponding quarter last year.

The company’s revenue from operations increased by 2.2% to ₹3,076 crore against ₹3,011.2 crore in the year-ago period, falling short of the CNBC-TV18 poll prediction of ₹3,162 crore for the quarter under review.

Pidilite Industries’ foray into lending

In early November, the company announced its foray into the lending arena, surprising the Street. The move is aimed at providing small-value retail loans to support its ecosystem and included the acquisition of the promoter-owned NBFC, Pargro Investments, for a fair asset value of ₹10 crore, with an anticipated investment of ₹100 crore over the next two years through debt and equity.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

From Fevicol ka Jod to Fevicol ka Loan: Stickiness extends beyond glue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a surprising move, Pidilite, the maker of Fevicol, announced its foray into the lending arena. The company plans to establish a lending business aimed at providing small value retail loans to support its ecosystem. The announcement also includes the acquisition of the promoter-owned NBFC, Pargro Investments Pvt Ltd, for a fair asset value of ₹10 crore, with an anticipated investment of ₹100 crore over the next two years through debt and equity.

Initially met with skepticism from the market due to the perceived non-core nature of this venture, Bharat Puri, MD of Pidilite, provided insights into the logic behind this strategic shift. Puri emphasised about the extensive network of suppliers, distributors, carpenters, and channel partners that the company interacts with regularly. These partners often face working capital stress and, in turn, request short-term funding. Pidilite, armed with knowledge of their partners’ purchase and payment history, is uniquely positioned to provide financial support and recover funds efficiently, strengthening their bond with the ecosystem.

Also Read: Piramal Pharma gains 4% on conclusion of USFDA inspection for its manufacturing unit in Pennsylvania

Addressing concerns about the risks associated with entering the NBFC domain, Bharat Puri outlined key risk mitigation strategies. The lending business will be housed separately, ensuring no dilution of management bandwidth. With a conservative capital exposure of ₹100 crore over the next two years and a substantial second quarter profit of nearly ₹500 crore, Pidilite aims to minimize financial risks. The venture will begin as a pilot in a single geography, allowing the company to experiment and refine the model before considering broader scalability.

In essence, Pidilite’s foray into the lending business is not just a strategic diversification but a move that leverages its existing relationships and knowledge base, creating a competitive advantage within its ecosystem.

Also Read: Fevicol maker Pidilite Industries Q2 net profit beats estimates, climbs 36%

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pidilite shares jump 5% after Goldman Sachs forecasts a 600 basis points margin improvement

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of adhesives manufacturer Pidilite Industries Ltd. gained over 5% on Tuesday after getting an upgrade from Goldman Sachs. The stock is also the top gainer on the Nifty Next 50 index.

Brokerage firm Goldman Sachs upgraded the stock to “buy” from its earlier rating of “sell” and also raised its price target higher to ₹2,725 from ₹2,350 apiece. The revised price target implies a potential upside of 18% from Monday’s close.

Goldman Sachs believes that the earnings downgrade cycle is behind for Pidilite Industries, which is India’s largest manufacturer of adhesives, as new growth drivers are emerging.

The brokerage has increased Pidilite’s earnings estimates for financial year 2025 and 2026 by 4% and 8% respectively, while accounting for higher revenue from new growth products and improved operating profit margins on lower input costs.

It also expects a strong recovery in the company’s operating profit margin or EBITDA margin, which is likely to rise to 23.1% in financial year 2026 from 16.7% in financial year 2023.

Among the key risks to its recommendation, Goldman Sachs has highlighted a slowdown in home construction or a sharp rise in input costs, which may adversely impact the company’s margin.

Pidilite is also set to announce its earnings for the September quarter on November 8.

For the June quarter, the company had reported revenue growth of 6% from last year, while EBITDA margin had expanded by 400 basis points.

Shares of Pidilite are trading 5.8% higher at ₹2,445.9. The stock is still down 4% so far in 2023.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Storyboard18 | Asian Paints prepares to embrace festive season celebrations

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The festive season is approaching, and brands and organisations are eagerly anticipating its arrival. Asian Paints is among the companies excitedly preparing to embrace this festive time.

During a special discussion with Storyboard18, Amit Syngle, Managing Director and CEO of Asian Paints, said the company is enthusiastic about the upcoming festive season coinciding with the cricket season this year. He also confirmed that Asian Paints will be increasing its advertising budget for this festival compared to the previous year.

“We are upping the spend from at least about another 15 percent jump in terms of what we want to see, and it is not only that we are looking at TV, but we are also looking at almost 360 degrees,” he said.

The company will also be focussing on enhancing premium offerings. Syngle also discussed the company’s promotion for Royale Glitz. This campaign is in line with the brand’s central message of grabbing attention and highlights brand ambassadors Deepika Padukone and Karan Johar on this occasion.

He also discussed how Asian Paints, the biggest paint manufacturer in India, doesn’t consider the competition posed by Pidilite Industries, Grasim, and other entrants into the market to be a significant concern regarding their revenue.

For more details, watch the accompanying video.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pidilite Q1 Results: Management bets on domestic business for growth, confident of gross margin improvement

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pidilite Industries Ltd., India’s largest manufacturer of adhesives is betting on its domestic markets to aid the company’s growth going forward.

In an interaction with CNBC-TV18, the company’s Managing Director Bharat Puri said that he is expecting domestic markets to drive growth going forward.

“The trend really is domestic markets demand remains quite good, internationally businesses that are focused on the US and Europe and actually also our neighbouring countries be it Nepal, be it Bangladesh, be it Sri Lanka are seeing some challenges from a demand perspective. But it is really in the domestic business motoring along well, some challenges on the international front,” Puri said.

Pidilite reported an operationally strong performance for the June quarter where revenue for the quarter grew by nearly 6 percent, while net profit grew by 32.5 percent. Operating profit or EBITDA was up by 33.5 percent, while margin expanded by over 400 basis points.

Pidilite’s international subsidiaries, excluding Pidilite USA Inc. sales were flat compared to last year, largely due to uncertain economic conditions, currency devaluation challenges in some countries and local inflation pressures with a flat operating performance.

Puri also attributed the subdued international performance due to some weakness in demand. On the other hand, domestic subsidiaries continued to deliver robust sales growth driven by the Consumer & Bazaar business with improved margins.

Pidilite’s EBITDA margin was back above the 20 percent mark with expansion seen in both consumer and industrial businesses. The company’s gross margin also expanded to 49 percent in the June quarter, compared to 41.7 percent last year and 46.8 percent in the March quarter.

Managing Director Puri said that he is expecting gross margins to improve further and that the margin is back to the 20-24 percent band.

Shares of Pidilite are trading 0.8 percent higher at Rs 2,541.40.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow