Pidilite Industries share price: gain 9%, ends 5% higher after Q3 earnings

Pidilite Industries stock gained 9 per cent on Thursday after reporting impressive growth volume in Q3 FY25. The stock closed 5.39 per cent higher on the NSE at ₹2,903.25, after hitting an intraday high of ₹2,997.20.

The total market cap stood at ₹1,47,672.67 crore. On the BSE, the stock closed 5.57 per cent positive at ₹2,907.55.

Pidilite’s consolidated net profit grew 8.2 per cent to ₹557.08 crore in the quarter ended December 2024 from ₹510.92 crore in the corresponding quarter previous year.

Revenue from operations (consolidated) rose 7.6 per cent to ₹3,368.91 crore in the December 2024 quarter, as against ₹3,129.99 crore in the year-ago period.

Standalone net profit for the quarter ended December 2024 was at ₹534.5 crore as against ₹522.85 crore in the year-ago period.

Domestic brokerage Motilal Oswal said the company remains cautiously optimistic about improved demand from a good monsoon and increased construction activities. The company is focused on driving profitable, volume-led growth through brand, supply chain, and people investments.

While the domestic subsidiaries delivered double-digit revenue growth at an improved EBITDA margin, the international subsidiaries — excluding Pidilite USA and Pulvitec Brazil — reported modest sales growth owing to global economic uncertainty, inflation, and political instability.

Bharat Puri, Managing Director, Pidilite Industries, said in an earnings release, “Despite subdued demand across urban and rural geographies, we continued to make steady progress, with robust revenue and underlying volume growth and healthy levels of profitability.”

Nuvama Institutional Equities stated that Pidilite delivered a decent performance in Q3FY25 revenue (up 7.6 per cent y-o-y) and EBITDA (up 7.5 per cent y-o-y) in line with the consensus estimates. The input costs remained benign during the quarter, it added.

The brokerage maintained a buy rating at a target price of ₹3,735, before the earnings conference call.

Global brokerage Goldman Sachs has retained buy call at a target price of ₹3,560, positive about the growth in volumes and margin expansion. However, it cited weaker-than-expected potential in the housing market and rising competition in the waterproofing segment as challenges.

Meanwhile, Macquarie has given an underperform rating at a target price of ₹2,600. It noted that sales growth was marginally below estimates in Q3 FY25.