Analysts see 23% upside in Pidilite Industries; retain 'Buy'; do you own?

Pidilite Industries share price has gained 13.1 per cent in the last six months. In comparison, BSE Sensex has gained a little over 10 per cent during the same period.

Pidilite Industries may still have steam left in its rally, with analysts remaining upbeat on the adhesives-to-paints maker’s growth trajectory.

 

Brokerage Nuvama has reiterated a ‘Buy’ rating to the Pidilite Industries stock with a target price of ₹3,785, implying an upside potential of nearly 23 per cent from current levels. The optimism follows a recent interaction with the company’s top management, including new managing director Sudhanshu Vats, where growth and profitability outlook was reaffirmed.

 

  Notably, the Pidilite Industries stock has gained 13.1 per cent in the last six months. In comparison, BSE Sensex has gained a little over 10 per cent during the same period.

 

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In Q1FY26, Pidilite delivered a robust performance, with revenue rising 10.5 per cent year-on-year (Y-o-Y) and Ebitda up 15.8 per cent, both comfortably beating Street estimates. 

 

Management has guided for double-digit revenue and volume growth in FY26, with Ebitda margins expected to stay at the higher end of its 20-24 per cent band.

 

Nuvama analysts Abneesh Roy, Jainam Gosar and Shlok Mehta described Pidilite as a “compounding machine”, underpinned by its leadership in adhesives, waterproofing and retail tile adhesives. A key growth lever is the tile adhesives segment, where penetration remains low but Pidilite’s Roff brand already leads retail sales and is steadily moving toward overall market leadership. While competition in paints and project tile adhesives is stiff, Pidilite’s breadth of portfolio and strong distribution are seen as competitive advantages.  ALSO READ | Nomura initiates 'Buy' on GAIL India stock; sees 29% upside; here's why 

The company’s paints venture, Haisha, is still at a pilot stage across five states but has been improving quarter-on-quarter. Analysts noted that the strategy to focus on “Rurban India” --  smaller towns and semi-urban markets with lower competitive intensity -- is beginning to show traction, aided by dealer additions, tinting machine rollouts and improving throughput.

 

Pidilite Industries is also eyeing future opportunities in adhesives for electric vehicles and semiconductors, with its products undergoing trials by EMS providers and EV manufacturers. A new EMS account was added in Q1FY26, strengthening its position in this high-growth market.

 

On the margin front, management expects stability, with gross margins holding near Q1 levels and modest pricing gains of 70-100 basis points likely in FY26. Input costs are seen benign despite a temporary rise in VAM prices, with diversified sourcing and limited US exposure mitigating risks.

 

Adding to the bullish sentiment, Incred Equities, in a report dated August 8, maintained an ‘Add’ rating on the stock, raising its target price to ₹3,515 (from ₹3,325 earlier). The brokerage highlighted Pidilite’s differentiated portfolio, thrust on distribution expansion and steady scale-up of the B2B segment as key medium-term growth drivers, supported by stable raw material prices. However, it cautioned that slower-than-expected urban recovery or rural weakness could pose risks.

 

With resilient margins, category leadership, incremental gains in paints, and long-term bets on EV and chip adhesives, analysts believe Pidilite is well-positioned to sustain its growth momentum.