Pidilite Industries saw a strong surge in its stock price, rising by 9% on Thursday following its impressive growth volume in Q3 FY25. Closing at ₹2,903.25 on the NSE, the stock hit an intraday high of ₹2,997.20, boosting the company’s total market cap to ₹1,47,672.67 crore. On the BSE, it closed 5.57% higher at ₹2,907.55.
In Q3 FY25, Pidilite’s consolidated net profit grew by 8.2% to ₹557.08 crore compared to ₹510.92 crore in the same quarter of the previous year. Consolidated revenue from operations also increased by 7.6% to ₹3,368.91 crore from ₹3,129.99 crore in the year-ago period.
The standalone net profit for the quarter stood at ₹534.5 crore, up from ₹522.85 crore in the corresponding period last year. Domestic brokerage Motilal Oswal expressed cautious optimism about improved demand driven by a good monsoon and increased construction activities. The company’s focus on driving profitable volume-led growth through brand, supply chain, and people investments was highlighted.
While domestic subsidiaries reported double-digit revenue growth and improved EBITDA margins, international subsidiaries (excluding Pidilite USA and Pulvitec Brazil) saw modest sales growth due to global economic uncertainty, inflation, and political instability. Bharat Puri, the Managing Director of Pidilite Industries, emphasized the company’s steady progress despite subdued demand across urban and rural areas.
Nuvama Institutional Equities noted that Pidilite delivered a decent performance in Q3FY25, with revenue and EBITDA in line with consensus estimates. The brokerage maintained a buy rating with a target price of ₹3,735. Global brokerage Goldman Sachs also retained its buy call with a target price of ₹3,560, citing growth in volumes and margin expansion while flagging challenges in the housing market and rising competition in the waterproofing segment.
In contrast, Macquarie gave an underperform rating with a target price of ₹2,600, noting that sales growth slightly missed estimates in Q3 FY25. Overall, Pidilite Industries continues to show resilience and growth potential in a challenging market environment.
