Pidilite Shares Fall To Nearly Two-Month Low As Q4 Profit Misses Estimates
The stock fell as much as 5.87% during the day to Rs 2,777 apiece on the NSE.
Shares of Pidilite Industries Ltd. plunged nearly 6% on Wednesday to the lowest in nearly two months after its consolidated net profit in the fourth quarter of financial year 2024 missed analysts' estimates.
Citi Research reiterated its 'sell' rating for the stock and a target price of Rs 2,200 apiece, implying a potential downside of 25.43% from the previous close.
The brokerage said the overall earnings growth might lag revenue growth, with soft raw-material prices likely to be largely offset by subdued revenue growth, and higher investment in brands and customer-facing initiatives.
Pidilite Q4 FY24 Earnings Highlights (Consolidated, YoY)
Revenue up 7.9% to Rs 2,902 crore vs Rs 2,689 crore (Bloomberg estimate: Rs 2,831 crore).
Ebitda up 26% to Rs 576.9 crore vs Rs 459.2 crore (Estimate: Rs 621 crore).
Margin expands to 19.88% vs 17.07% (Estimate 21.9%).
Net profit up 6.5% to Rs 304 crore vs Rs 286 crore (Estimate: Rs 425 crore).
Board recommended a dividend of Rs 16 per share.
On the NSE, Pidilite's stock fell as much as 5.87% during the day to Rs 2,777 apiece, the lowest since March 14. It was trading 4% lower at Rs 2,831.35 per share, compared to a 0.09% advance in the benchmark Nifty 50 at 12:44 p.m.
The share price has risen 4.20% on a year-to-date basis and 8.38% in the last 12 months. The total traded volume so far in the day stood at 3.17 times its 30-day average. The relative strength index was at 39.27.
Eight out of the 19 analysts tracking the company have a 'buy' rating on the stock, four recommend 'hold' and seven suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 2.6%.
