Pidilite Industries Ltd: Building Momentum Towards New Highs
📊 Technical Analysis
Pidilite Industries, a dominant player in the adhesives and sealants market, has exhibited a consistent bullish trend over the past two decades, characterized by a pattern of higher highs and higher lows.
All-Time High Resistance: In September 2024, the stock created an all-time high of ₹3,415. Since then, it has faced resistance at this level.
Recent Correction and Support: Amidst a broader market correction starting in September 2024, Pidilite's stock retraced, forming a higher low around ₹2,650.
Positive Momentum: Following robust Q3 FY24 results, the stock has shown appreciation, forming a new higher low, indicating renewed bullish momentum.
Target Levels:
🎯 ₹3,200
🎯 ₹3,300
🎯 ₹3,415 (previous all-time high)
Stop-Loss: A prudent stop-loss can be placed at the recent higher low of ₹2,615.
🔍 Fundamental Analysis:
Pidilite Industries has delivered steady performance in Q3 FY24, reflecting its strong market positioning and resilient business model.
📌 Q3 FY24 Key Financial Highlights:
Pidilite has consistently improved its earnings, driven by better volume growth and stable input costs. The Q3 performance reaffirms investor confidence and underlines the company's operational strength and profitability.
📈 Recent Performance Drivers
📌 Conclusion
Pidilite Industries continues to demonstrate strong technical and fundamental performance. The formation of higher lows and the recent uptrend suggest potential for the stock to retest and possibly surpass its previous all-time high. Investors may consider monitoring the stock for a breakout above ₹3,415, with appropriate risk management strategies in place.
📜 Disclaimer
This report is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any stock. Please consult your financial advisor before making any investment decisions. Trading and investing in the stock market involve risk.
Pidilite Industries, a dominant player in the adhesives and sealants market, has exhibited a consistent bullish trend over the past two decades, characterized by a pattern of higher highs and higher lows.
All-Time High Resistance: In September 2024, the stock created an all-time high of ₹3,415. Since then, it has faced resistance at this level.
Recent Correction and Support: Amidst a broader market correction starting in September 2024, Pidilite's stock retraced, forming a higher low around ₹2,650.
Positive Momentum: Following robust Q3 FY24 results, the stock has shown appreciation, forming a new higher low, indicating renewed bullish momentum.
Target Levels:
🎯 ₹3,200
🎯 ₹3,300
🎯 ₹3,415 (previous all-time high)
Stop-Loss: A prudent stop-loss can be placed at the recent higher low of ₹2,615.
🔍 Fundamental Analysis:
Pidilite Industries has delivered steady performance in Q3 FY24, reflecting its strong market positioning and resilient business model.
📌 Q3 FY24 Key Financial Highlights:
- Total Income: ₹3,369 Cr (vs ₹3,235 Cr in Q2 FY24 and ₹3,130 Cr in Q3 FY23)
- Total Expenses: ₹2,571 Cr (vs ₹2,467 Cr in Q2 FY24 and ₹2,388 Cr in Q3 FY23)
- Total Operating Profits: ₹798 Cr (vs ₹768 Cr in Q2 FY24 and ₹742 Cr in Q3 FY23)
- Profit Before Tax: ₹752 Cr (vs ₹725 Cr in Q2 FY24 and ₹687 Cr in Q3 FY23)
- Profit After Tax: ₹557 Cr (vs ₹540 Cr in Q2 FY24 and ₹511 Cr in Q3 FY23)
- Diluted Normalized EPS: ₹10.86 (vs ₹10.51 in Q2 FY24 and ₹10.04 in Q3 FY23)
Pidilite has consistently improved its earnings, driven by better volume growth and stable input costs. The Q3 performance reaffirms investor confidence and underlines the company's operational strength and profitability.
📈 Recent Performance Drivers
- Volume Growth: The company reported a 9.7% underlying volume growth across categories and geographies, with the B2B segment showing strong momentum.
- Margin Improvement: Gross margins improved by 100 basis points year-on-year, primarily due to benign input prices.
- Operational Efficiency: The company commissioned additional manufacturing facilities, enhancing its production capabilities and distribution network.
📌 Conclusion
Pidilite Industries continues to demonstrate strong technical and fundamental performance. The formation of higher lows and the recent uptrend suggest potential for the stock to retest and possibly surpass its previous all-time high. Investors may consider monitoring the stock for a breakout above ₹3,415, with appropriate risk management strategies in place.
📜 Disclaimer
This report is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any stock. Please consult your financial advisor before making any investment decisions. Trading and investing in the stock market involve risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.