《Hold Pidilite Industries; target of Rs 378: ICICIdirect》：
“Pidilite Industries (Pidilite) is a dominant play in India’s growing adhesive and industrial chemical market with a market share of ~70% in its leading brand categories in the organised segment. The company’s two major segments, consumer & bazaar (C&B) and speciality industrial chemical have grown at a CAGR of ~21% and ~15% (standalone), respectively, in FY10-13. The consumer & bazaar segment contributes ~79% of Pidilite’s standalone revenue. This segment has grown mainly driven by adhesive and sealants segments, which contribute ~63% to the company’s consumer & bazaar segment revenue (FY13) and recorded ~21% CAGR during FY10-13. We believe since the segment growth is largely driven by construction, repair and maintenance, sales growth in the consumer and bazaar will be at 18.6% CAGR in FY14-16E on the back of an increase in penetration in smaller towns (population below 50,000).” “The specialty industrial segment contributes ~21% of Pidilite’s standalone revenue. This segment has grown at 20% CAGR during FY10- 14 mainly driven by growth in demand from packaging, cigarettes, stickers, labelling, footwear, etc. The specialty industrial segment has major three sub-segments: industrial adhesive, industrial resins and organic pigments & preparations. We have modelled industrial segment revenues will grow at a CAGR of 18% for FY14-16E led by strong growth in industrial adhesives & resins. Pidilite Industries is one of the well known adhesive companies in India for the quality and reach to end users. Fevicol, the legacy brand of the company, is a generic name in the adhesive category in India. In spite of the strong brand, the company has kept its marketing and selling expenses to the tune of ~4% of sales to gain market share.” “At the CMP, the stock is trading at a PE multiple of 36x FY15E earnings and 30x FY16E earnings. The company has recorded revenue, earning CAGR of 16.5%, 32.1%, respectively, in FY09-14E, on the back of sustained demand from craft & interior designing. We estimate revenues, earnings CAGR of 18%, 19.3%, respectively, in FY14-16E on the back of demand from tier II, –tier III cities. In the last two years, the stock has traded at an average one year forward earning multiple of 25x. We believe the stock is fairly valued at the current price and maintain HOLD rating with a target price of Rs 378 per share valuing at 30x FY16E,” says ICICIdirect.com research report.
《Hold Pidilite Industries; target of Rs 378: ICICIdirect》：
“Pidilite Industries (Pidilite) is a dominant play in India’s growing adhesive and industrial chemical market with a market share of ~70% in its leading brand categories in the organised segment. The company’s two major segments, consumer & bazaar (C&B) and speciality industrial chemical have grown at a CAGR of ~21% and ~15% (standalone), respectively, in FY10-13. The consumer & bazaar segment contributes ~79% of Pidilite’s standalone revenue. This segment has grown mainly driven by adhesive and sealants segments, which contribute ~63% to the company’s consumer & bazaar segment revenue (FY13) and recorded ~21% CAGR during FY10-13. We believe since the segment growth is largely driven by construction, repair and maintenance, sales growth in the consumer and bazaar will be at 18.6% CAGR in FY14-16E on the back of an increase in penetration in smaller towns (population below 50,000).” “The specialty industrial segment contributes ~21% of Pidilite’s standalone revenue. This segment has grown at 20% CAGR during FY10- 14 mainly driven by growth in demand from packaging, cigarettes, stickers, labelling, footwear, etc. The specialty industrial segment has major three sub-segments: industrial adhesive, industrial resins and organic pigments & preparations. We have modelled industrial segment revenues will grow at a CAGR of 18% for FY14-16E led by strong growth in industrial adhesives & resins. Pidilite Industries is one of the well known adhesive companies in India for the quality and reach to end users. Fevicol, the legacy brand of the company, is a generic name in the adhesive category in India. In spite of the strong brand, the company has kept its marketing and selling expenses to the tune of ~4% of sales to gain market share.” “At the CMP, the stock is trading at a PE multiple of 36x FY15E earnings and 30x FY16E earnings. The company has recorded revenue, earning CAGR of 16.5%, 32.1%, respectively, in FY09-14E, on the back of sustained demand from craft & interior designing. We estimate revenues, earnings CAGR of 18%, 19.3%, respectively, in FY14-16E on the back of demand from tier II, –tier III cities. In the last two years, the stock has traded at an average one year forward earning multiple of 25x. We believe the stock is fairly valued at the current price and maintain HOLD rating with a target price of Rs 378 per share valuing at 30x FY16E,” says ICICIdirect.com research report.