Why Nuvama Is Bullish on Pidilite Industries; Key Growth Drivers Explained

Synopsis: Nuvama reiterates a ‘Buy’ on Pidilite Industries with a Rs 1,915 target, citing 10% volume growth and improving EBITDA margins. Key growth drivers include Roff, Dr Fixit and Projects, scaling 2-4x GDP. Expansion into paints and electronic adhesives further strengthens its long-term revenue visibility and diversification strategy.

Pidilite Industries remains in focus after Nuvama reaffirmed its ‘Buy’ rating following a management interaction. The broking highlighted steady volume momentum, margin stability and strong performance across core categories. Growth is being driven by construction chemicals and waterproofing, while calibrated expansion into new adjacencies is broadening the opportunity landscape. The company’s strategy reflects a balanced mix of core strength and forward-looking category diversification.

With a market cap of Rs 1.53 lakh crore, the shares of Pidilite Industries Ltd are trading at Rs 1,500 and are trading at a PE of 66.4 compared to its industry PE of 28.1. The shares have given a return of about 78% in the last 5 years.

Nuvama on pidilite 

Nuvama has maintained a ‘Buy’ rating on Pidilite Industries with a target price of Rs 1,915, after its recent management meeting. The broking firm pointed out that the company is looking to achieve around 10% volume growth, with short-term EBITDA margins likely to move towards the higher end of its 20-24% guidance range, which is a positive indication of continued operating traction.

As per Nuvama, the key growth drivers are Roff, Dr Fixit, and the Projects business, which are all growing at 2-4 times GDP growth. This is because these businesses continue to benefit from robust demand for construction chemicals and waterproofing products, driven by urbanisation and infrastructure development.

The company is also making measured growth bets in new product categories such as paints, having recently forayed into two to three eastern states, besides joinery and grouts. These new product categories are being pursued to further consolidate its position in the larger building materials space.

Pidilite is also looking to enlarge its total addressable market (TAM) with its foray into electronic adhesives, which is an annual business opportunity of Rs 9-10 billion by FY30. This is a positive indication of the company’s plans to further diversify its revenue streams into higher-value specialty businesses.

Financials

The revenue from operations for the company stood at Rs 3,710 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 3,369 crores, up by about 10 per cent YoY. However, the net profit stood at Rs 624 crore in Q3 FY26, up compared to the Rs 557 crore profit in Q3 FY25.

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