Mumbai, India – Pidilite Industries (PIDI) witnessed a remarkable surge in its share price, climbing over 6% to reach ₹2460, resulting in a market capitalization of ₹1.24 lakh crore. The day’s trading also saw a substantial turnover of ₹12.76 crore, with 0.53 lakh shares changing hands. (INR 100 crore is approximately equivalent to USD 12 million). This surge in share price follows an upgrade in the company’s rating by Goldman Sachs.
Throughout the year, Pidilite Industries’ stock performance displayed significant fluctuations, ranging from a high of ₹2796.15 to a low of ₹2250.85. Despite facing potential threats to its EBITDA margin, the company has managed to rebound impressively in 2023.
Goldman Sachs has raised its earnings estimates for the fiscal years 2025 and 2026, signaling an expectation of margin recovery for Pidilite Industries. This upward revision in projections comes on the heels of a robust Q1 report from the company. The report highlighted a year-over-year consolidated net profit surge of 32%, a standalone PAT (Profit After Tax) increase of 40%, and a net sales growth of 6%.
The stock’s beta currently stands at 0.6, with a relative strength index (RSI) of 30.6, indicating a comparatively lower level of volatility when compared to the broader market.
The surge in Pidilite Industries’ share price today is attributed to Goldman Sachs’ decision to upgrade their rating for the company, signifying a vote of confidence in its future prospects. The stock’s performance has been notably volatile throughout the year, with its value fluctuating between ₹2250.85 and ₹2796.15. Despite potential threats to its EBITDA margin, the company has shown resilience in its performance throughout 2023.
Goldman Sachs’ upward revision of earnings estimates for the fiscal years 2025 and 2026 indicates an anticipation of a margin recovery for Pidilite Industries. This optimistic outlook follows a strong Q1 report from the company, which reported a substantial year-over-year increase in consolidated net profit (32%), standalone PAT (40%), and net sales growth (6%).
Pidilite Industries’ stock boasts a beta of 0.6 and an RSI of 30.6, indicating a relatively lower level of volatility in comparison to the broader market.
