Pidilite's stock up 10% post weak Q2 results, will uptrend continue?

While margin pressure and pricey valuation are near-term headwinds, volume growth remains healthy

The operational performance of Pidilite Industries in the September 2018 quarter (Q2) was almost in line with expectations with profit margin contracting amid inflationary pressure and consolidated net profit falling 9 per cent year on year to Rs 2.31 billion.

Yet, the stock is up 10 per cent after the results. So, what explains this and will the uptrend continue?

One reason is that the stock had already fallen over 20 per cent from its peak level of Rs 1,195 in August on worries over rising oil prices, and consequently, due to expectations of weak Q2 results. The profitability of