Goldman Sachs remains bullish on Pidilite, sees strong B2B traction and volume resilience
By Markets Desk Published on May 12, 2025, 07:40 IST
Goldman Sachs has maintained a 'Buy' rating on Pidilite Industries, with a target price of ₹3,475, citing the company's resilient near double-digit volume growth despite a generally muted consumer environment in Q4FY25.
According to the brokerage, Pidilite's performance reflects underlying strength in both its consumer and B2B segments, aided by broader improvements in consumption trends. Goldman Sachs pointed out that gross margins expanded during the quarter, even though advertising and promotion (A&P) spending also increased as the company focused on brand investments.
The report added that management remains optimistic about FY26, particularly given early signs of volume-led recovery across regions, especially in Tier 2 and Tier 3 cities. The B2B business, which includes industrial adhesives and construction chemicals, is expected to maintain strong momentum over the next 2–3 years, supported by infrastructure demand and broader industrial recovery.
The brokerage views Pidilite as a core compounder in the Indian consumption space, underpinned by its brand equity, pricing power, and diversified product portfolio. With raw material costs easing and demand picking up, Goldman Sachs believes the company is well-placed for a margin-accretive growth cycle in FY26 and beyond.
Markets Desk at BusinessUpturn.com
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