Citi has issued a ‘Sell’ rating on Pidilite Industries, setting a target price of ₹2,800, which implies a 2.2% downside from its current market price (CMP) of ₹2,738.40. The brokerage highlights near-term demand uncertainty as a key concern, though it acknowledges the company’s long-term growth potential through premiumisation and innovation.
Pidilite’s focus remains on achieving double-digit unit volume growth (UVG) over the long term, despite short-term challenges in demand trends. Citi also points out that the stock is currently trading at 57x and 50x its FY26 and FY27 earnings per share (EPS), respectively, indicating rich valuations.
While the company continues to leverage premiumisation and product innovation for growth, Citi remains cautious on its near-term outlook, making it a less attractive investment at current levels.
(Disclaimer: This article is for informational purposes only and does not constitute financial advice.)