Buy Pidilite Industries target Rs 874: Reliance Securities
Reliance Securities has Buy call on Pidilite Industries with a target price of Rs 874.
The current market price of Pidilite Industries is Rs 792.05.
Pidilite Industries closed 1.8% up for the day at Rs796 compared to 0.1% increase in the benchmark Nifty.
Pidilite posted decent set of numbers in 4QFY17 with impressive volume growth of 8 per cent YoY vs. 1.5 per cent YoY volume decline witnessed in the preceding quarter.
In its report, Reliance Securities says, “We expect the company to benefit post GST roll-out, as the proposed GST rate for adhesives at 18 per cent is lower than the current indirect tax rate of 23 per cent for the company. Pidilite is estimated to post consolidated revenues of Rs64.6 billion and Rs 74.1 billion and net profit of Rs10.1 billion and Rs11.8 billion in FY18E and FY19E, respectively. Based on expected EPS of Rs 23, the stock currently trades at P/E multiple of 34.6x FY19E earnings. Expecting Pidilite to command premium multiples on account of strong brands, market leadership, superior management bandwidth, stable input cost and GST roll-out, we recommend BUY on the stock with a Target Price of Rs 874.”
Let’s block ads! (Why?)
Via:: Economic Times – Stocks