Pidilite Industries Limited (NSE:PIDILITIND) Half-Year Results: Here's What Analysts Are Forecasting For This Year

Pidilite Industries Limited (NSE:PIDILITIND) last week reported its latest interim results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of ₹66b and statutory earnings per share of ₹10.49 both in line with analyst estimates, showing that Pidilite Industries is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Pidilite Industries

After the latest results, the 17 analysts covering Pidilite Industries are now predicting revenues of ₹133.3b in 2025. If met, this would reflect a credible 5.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 13% to ₹42.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹135.3b and earnings per share (EPS) of ₹42.59 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹3,214. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Pidilite Industries analyst has a price target of ₹3,735 per share, while the most pessimistic values it at ₹2,700. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Pidilite Industries shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pidilite Industries' past performance and to peers in the same industry. We would highlight that Pidilite Industries' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Compare this to the 322 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it looks like Pidilite Industries is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Pidilite Industries going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Pidilite Industries , and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.