Buy Stock: Multibagger Pidilite Industries Hit All-Time High, Buy With Rs. 2590 Stop Loss: Top Brokerage

The share price of Pidilite Industries Ltd. recently hit an all-time high level on NSE, at Rs. 2,918.95, on October 15. Prabhudas Lilladher, a leading brokerage firm recommends investors buying the stock of Pidilite Industries, for medium-term.

Stock To Buy: Target Price

The Current Market Price (CMP) of Pidilite Industries is around Rs. 2725. Prabhudas Lilladher has estimated a Target Price for the stock at Rs. 2980. It is a bluechip stock with a market capitalization of around Rs. 137,644 crore.

Stock Outlook
Current Market Price (CMP)	Rs. 2725
Target Price (medium-term)	Rs. 2980
Stop Loss	Rs. 2590
52 week high share price	Rs. 2,918.95
52 week low share price	Rs. 1,988.55

Stock Valuation - mentioned by Prabhudas Lilladher

Giving a buy rating the brokerage firm stated, "The stock after making the all-time high of Rs. 2918 has witnessed a short correction to again bottom out near 2600 levels near the channel pattern on the daily chart with a higher formation pattern showing strength and is anticipated for further upward move in the coming days. The RSI indicator also has shown a trend reversal from near the oversold zone and suggesting immense upside potential to retest the peak zone once again. We suggest to buy the stock for an upside target of Rs. 2980 keeping the stop loss of Rs. 2590."

Stock performances - NSE

In the last 5 days, the share of Pidilite Industries gained by 2.89%, in the past 1 month it has fallen by 3.54%, gained by 14.51% in the last 6 months. However, this stock fell by 8.21% in the last 1 year. In the last 5 years its share price surged by 244.27%, making it a multibagger stock.

Strong financials

The company's Q2 FY23 net sales at Rs. 3,091 crore increased by 60% YoY, EBITDA before non-operating income at Rs. 529 crore increased by 52% YoY. Its Profit before Tax and Exceptional items (PBT) at Rs. 473 crore gained by 63% YoY, while Profit after tax (PAT) at Rs. 358 crore gained by 64% YoY. Additionally, in Q2 FY23, C&B sales (Standalone) gained by 67% with underlying volume and mix growth of 49% and 51% sales growth in B2B respectively with underlying volume and mix growth of 29%.

Disclaimer

The above stock was picked from the brokerage report of Prabhudas Lilladher. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.