Despite muted volume growth in the September quarter, the stock of Pidilite Industries has gained 6.4 per cent over the last month, outperforming the broader market indices like the S&P BSE Sensex, which is up 1.1 per cent during the period. A sustained strong margin outlook with supportive raw material inflation is keeping investor sentiments intact.
In fact, stock valuation has remained high and is currently at par with that of companies like Asian Paints at around 50 times FY21 estimated earnings. The southward trend in prices of key raw material, i.e. vinyl acetate monomer (VAM), …
Source: Business Standard
