Nuvama has maintained its ‘Buy’ rating on Pidilite Industries, setting a target price of ₹3,660, which implies a 33.7% upside from its current market price (CMP) of ₹2,738.40. The brokerage remains optimistic about the company’s growth potential in waterproofing, tile adhesives, and expansion into emerging markets.
Pidilite is focusing on addressing market gaps by bringing in two senior CXO-level executives and forming a dedicated team to drive strategic growth. The company’s core business mix is now split 52:48 between its growth and pioneer segments.
The tile adhesives segment presents significant opportunities, with current usage at just 25% for tile fixing, offering ample room for expansion. Meanwhile, the waterproofing segment is witnessing robust growth, with 50% of demand coming from new construction projects, compared to its current penetration of just 15%.
Pidilite is also aggressively expanding its global footprint, strengthening its presence in Africa and scaling up operations in Saudi Arabia. Additionally, the appointment of Sudhanshu Vats as Managing Director and Kavinder Singh as Joint MD is expected to enhance leadership execution and business strategy.
With strong domestic and international expansion plans, Nuvama sees Pidilite as a high-growth company, reinforcing its position as a compounding investment story.
(Disclaimer: This article is for informational purposes only and does not constitute financial advice.)