Pidilite Industries (PIDI IN) – Q3FY26 Result Update – Growth outlook remains strong – BUY
Published on 04 Feb 2026
PIDI is well positioned to sustain growth, driven by continuous innovations, strategic tie-ups to introduce technologically advanced products, and 2–4x growth in pioneer and growth categories (45% of sales). Near-term margin outlook remains stable given benign RM prices; however, expansion looks unlikely as PIDI continues to invest in new categories and brand building. We estimate 10% EPS CAGR over FY26–28 and assign a DCF-based target price of Rs1,734 (Rs1714 earlier). The stock trades at rich valuations of 48.5xFY28, however given 15% correction from peak and steady outlook, it offers scope for mid teen returns in next 12-15 months. Retain BUY.
