Business Business: Pidilite Industries released its Q2 results on 23rd October 2024 The results were released, showing a strong performance with profit growth of 18.75% year-on-year. The company’s topline revenue saw a growth of 5.16% compared to the same quarter last year. However, compared to the previous quarter, Pidilite’s revenue saw a decline of 4.73%, while profit saw a decline of 5.71%. This indicates some challenges in maintaining momentum in the short term despite positive year-on-year growth.
There has been a significant increase in selling, general and administrative (SG&A) expenses, which grew by 4.42% quarter-on-quarter and 19.96% year-on-year. This increase in expenses may have contributed to the decline in profitability when viewed sequentially. Operating income saw a decline of 6.51% quarter-on-quarter but still grew by 12.64% year-on-year, reflecting the company’s ability to improve its operational efficiency over the long term.
Earnings per share (EPS) for the second quarter stood at ₹10.49, reflecting a growth of 18.53% over the same period last year. This is a positive indicator for shareholders as it reflects higher profitability per share. Despite the positive performance in the second quarter, Pidilite Industries has returned -2.81% in the past week, although it has achieved an impressive return of 4.76% in the past six months and 13.83% year-on-year.
As of now, the market capitalization of Pidilite Industries is ₹157197.2 crore with a 52-week high of ₹3415 and a lowest of ₹2292.55. This reflects a healthy trading range and investor interest in the stock. Out of 13 analysts tracking Pidilite Industries, the consensus on the stock’s performance is mixed. Currently, 1 analyst has given it a ‘Strong Sell’ rating, 4 have given it a ‘Sell’ rating, 3 have given a ‘Hold’ rating, and 5 analysts have given a ‘Buy’ recommendation. Overall, the consensus recommendation remains ‘Hold’ until Oct 24, 2024.
