HSBC Initiates 'Buy' on Pidilite With Rs 1,890 Target, Sees ~20% Upside
HSBC starts coverage on Fevicol maker Pidilite with a 'Buy' rating and Rs 1,890 target, citing 65-70% woodworking adhesive share, 60% gross margins, deep distribution and a 10-15% price premium. Waterproofing and tile adhesives, now 25-30% of revenue, are flagged as the next growth engines, driving 13-14% annual revenue and earnings growth through FY26-FY29.
HSBC initiates 'Buy' on Fevicol maker Pidilite with Rs 1,890 target (~20% upside), citing adhesives dominance, deep distribution, and waterproofing/tile-adhesive growth engines expected to outpace GDP.
Why this matters
The bullish HSBC initiation contrasts with recent caution, as Pidilite flagged rising input costs and West Asia supply risks even while guiding to stable FY27 demand.
Retail-company signals are accelerating, up 792,200% QoQ.