Demand to propel Pidilite's earnings growth; analysts positive on the stock

Analysts also expect Pidilite's sales growth in the near-term to be driven by volume

With a sturdy volume growth (13 per cent), Pidilite Industries (Pidilite) posted 14.7 per cent and 57.4 per cent year-on-year rise in net sales and net profit, respectively, in the March 2018 quarter (Q4). With positive business outlook in terms of volume growth and pricing power to protect its margin, analysts are positive on the stock. In fact, the stock surged about 25 per cent in the past three months, while the BSE FMCG index rose by 9.3 per cent.

Going ahead, the double-digit volume growth trajectory is expected to continue due to improvement in demand and the positive outlook given