Recovery hopes and further pricing action to support Pidilite stock

Further rise in raw material prices could impact near term margins

Strong performance in the March quarter, expectations of demand recovery, and market share improvement led to a 13 per cent gain for Pidilite Industries over the last month. Though raw material prices have seen a sharp upward trend and remain a key headwind for margins, the company may look at further hikes to offset the commodity pressures.

Robust demand from urban regions helped the company post a 45 per cent  YoY growth in the March quarter. Adjusting for the acquisition of Huntsman Advanced Materials (Araldite) in November last year, sales came in at 38 per cent. The company’s growth even