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Motilal Oswal: Pidilite Industries’ Strong Recovery Augurs Well; Margins Unsustainable  

Motilal Oswal: Pidilite Industries’ Strong Recovery Augurs Well; Margins Unsustainable

Dr. Fixit brand manufactured by Pidilite Industries Ltd. (image: Company website)
Dr. Fixit brand manufactured by Pidilite Industries Ltd. (image: Company website)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Pidilite Industries Ltd. saw strong recovery in Q2 FY21 led by consumer and bazaar segment, which reported 9.4% sales growth YoY (7.4% volume and mix growth YoY).

Consolidated sales grew 4.1% YoY (ahead of estimate 10% decline YoY).

A mix of better-than-expected sales, low raw material costs (which have gone up since) and sharp cut in advertisement spends (which should normalize) led to margins of 27.3% , well ahead of the targeted 21-24% levels by management.

Click on the attachment to read the full report:

Motilal Oswal Pidilite Industries Q2FY21 Result Update.pdf

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