Pidilite Industries has once again become the center of discussion in Dalal Street after brokerage house Nuvama Institutional Investors reaffirmed its ‘Buy’ rating on the stock. With a target price of ₹3,785, Nuvama projects an upside potential of 23.3% from the current levels.
The brokerage highlighted three major reasons for its bullish outlook – the rising demand for tile adhesives, the steady improvement in its Haisha Paints brand, and the company’s confidence in double-digit growth in revenue and profitability. For long-term investors, Pidilite Industries continues to be seen as a reliable compounding machine.
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Tile Adhesives: A High-Growth Segment for Pidilite Industries
One of the strongest growth drivers for Pidilite Industries is its tile adhesives business. Analysts at Nuvama noted that despite the segment being relatively underpenetrated in India, the company has built a comprehensive portfolio that is well-positioned to capture market share.
The demand for tile adhesives is expected to grow rapidly as urbanization, new housing projects, and renovations continue across the country. For Pidilite Industries , this category represents a long runway for growth and is likely to remain a key revenue contributor in the coming years.
Haisha Paints: A Promising Bet for Pidilite Industries
Another focus area for Pidilite is its decorative paints brand – Haisha Paints. While management admitted that initial expectations were not fully met, they emphasized that the brand is steadily improving. Both quarter-on-quarter and month-on-month trends indicate positive momentum.
The paints market in India is highly competitive, but the trust and distribution strength of Pidilite Industries give Haisha Paints a strong platform to scale further. Analysts believe that this vertical could contribute meaningfully to long-term earnings.
Double-Digit Growth Confidence
During interactions with analysts, the management of Pidilite Industries expressed strong confidence in achieving double-digit revenue growth, supported by aspirations for double-digit volume growth as well.
The company guided for EBITDA margins in the higher range of 20–24%, which reflects robust operational efficiency. For FY26, Pidilite Industries expects its core categories to grow at 1–2x GDP growth, while its emerging growth categories could expand at 2–4x GDP levels.
This positions the company as one of the few in the FMCG and chemicals space capable of delivering consistent and above-average growth rates.
Strong Q1 FY26 Performance
The optimism around Pidilite Industries is backed by solid Q1 results. The company reported a rise in consolidated net profit to ₹672.41 crore in Q1 FY26, compared to ₹567 crore in the same quarter last year.
Revenue from operations climbed 10.5% year-on-year to ₹3,753 crore, up from ₹3,395.35 crore in Q1 FY25. Similarly, the company’s total income increased to ₹3,838.81 crore from ₹3,449.29 crore in the corresponding period.
This growth was ahead of Nuvama’s estimates and reinforced the brokerage’s bullish stance on Pidilite Industries.
Why Investors Are Bullish on Pidilite Industries
Analysts at Nuvama believe Pidilite Industries is a “compounding machine” because of its strong financial discipline, brand leadership, and diversified growth engines. Its cash flow generation remains healthy, and reinvestments into new categories ensure that growth remains sustainable.
With the company’s ongoing focus on adhesives, construction chemicals, and paints, Pidilite Industries is well-placed to benefit from India’s rising demand in housing and infrastructure.
Stock Performance of Pidilite Industries
Despite near-term volatility, the long-term outlook remains favorable. In the past six months, the share price of Pidilite Industries has gained 13%, and on a year-to-date basis, it is up by 8.3%.
However, over the last one year, the stock has corrected by around 5%, which analysts see as an opportunity for accumulation. At current levels, the risk-reward equation appears attractive for investors who believe in the long-term growth story of Pidilite.
3 Key Reasons Why Nuvama Projects 23% Upside
- High-Growth Tile Adhesives Business – With low penetration and rising demand, this category is expected to deliver strong revenue growth.
- Haisha Paints Gaining Traction – Steady improvements indicate that Pidilite Industries is on track to strengthen its decorative paints vertical.
- Confidence in Double-Digit Growth – Strong margins, revenue growth, and leadership in niche categories position the company for long-term compounding.
Is Pidilite Industries a Stock to Buy?
With strong Q1 results, consistent cash generation, and clear growth visibility, Pidilite continues to attract attention from institutional investors. The brokerage target of ₹3,785 implies meaningful upside, and the stock remains a preferred pick for those seeking steady wealth creation.
While short-term corrections may occur, the long-term fundamentals of Pidilite remain intact. Investors with a multi-year horizon may consider this as a strong addition to their portfolios.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions in Pidilite Industries or any other stock.
