Pidilite Industries ltd.:
M.P as on 29.8.08 is Rs. 139/-. Current EPS is Rs.9/- which is likely to grow @ 20% p.a. for the next 10 years.
The stock has given compound return of over 40% p.a. since its IPO in 1994.
The expected M.P in 2009-2010 is Rs.210/- to 260/- and in 2011-2012 is Rs.320/- to 380/-.
Expected price range in 2017-18 is Rs. 1000/- -1400/-. The stock is expected to give compounded returns of over 26% p.a.
Currently consolidating around Rs. 135/- to 140/-. Likely to move up to Rs. 150/- to 160/- range in the near term. Fairly priced around its intrinsic worth of Rs. 130/--to 140/- and also yearly low of Rs.125/-.
The company operates in niche area of speciality chemicals for construction Industry, Industrial sealants, branded consumer and bazaar products include paints, adhesives, waterproofing coatings, bioshield -anti-bacterial coatings and art material for kids. Fevicol,Fevikwik, Fevicryl, M-Seal, Roff, Dr.Fixit, Steelgrip, Fevi Stik, Pidifix and Pidiseal are its famous brands. Recently started manufacturing Heat shield -Heat reducing exterior coatings.
The company has strong in-house R&D facilities and its products are far superior than its competitors. In the recent past has acquired many companies outside India which are likely to give good returns in the near future.
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