Pidilite sticks: Fevicol maker on a high, but sharp margin gains unlikely

High stock valuation is another hurdle for the manufacturer of adhesives and construction chemicals

The stock of Pidilite Industries, which makes adhesives and construction chemicals, hit record levels last week and has gained about 14 per cent since February. Healthy volumes in the October-December quarter of FY24 (Q3 FY24), high margins and improved distribution have improved sentiment for the stock. New products and business-to-business (B2B) demand will help the company’s sales, analysts say.

Pidilite, which makes Fevicol, Dr Fixit, Fevikwik and M-Seal adhesives, had a strong operational performance but revenue growth was muted in Q3 FY24. Sales grew just 4.4 per cent but volumes were healthy at 10 per cent.

The muted