Following a meeting with the company’s management, global brokerage firm Macquarie maintained its ‘Underperform’ rating on Pidilite Industries with a price target of ₹1,250 per share.
The brokerage said that recent price hikes have had only a limited impact on demand, while the company continues to maintain its EBITDA margin guidance of 20% to 24%.
Management reiterated that improving volume growth remains a key priority. It also indicated that price cuts could be considered if raw material costs decline sharply.
Macquarie highlighted that growth in the adhesives business during FY26 was driven by an industry recovery as well as new product launches and innovations.
The brokerage added that Pidilite is likely to keep capital expenditure at around 3% to 5% of sales, with investments primarily focused on domestic operations.
It also said the company’s successful growth strategy for its Roff brand could be replicated across other underpenetrated categories, such as tile grouts.
First Published: Jun 30, 2026 3:10 PM IST
