The market leader stock in the adhesives segment gained around 1.5 percent to Rs 2,771 per share on Monday after the company announced a partnership with Italy-based firm Syn-Bios.
Pidilite Industries Ltd belongs to a large-cap category of stocks, with a market capitalization of Rs 1,40,226 crores.
According to an exchange filing, Pidilite Industries Limited has partnered with Italy-based Syn-Bios, known for R&D and global marketing in the leather tanning industry.
This partnership will enhance Pidilite Industries’ product range, in extensive leather chemical products in India, Bangladesh, Vietnam, Nepal, and Sri Lanka.
In this collaboration, Pidilite Industries Limited will handle sales and distribution of Syn-Bios products in India, Sri Lanka, Bangladesh, Nepal, and Vietnam. Both companies will also engage in technical collaboration to offer comprehensive solutions for the Leather Industry.
Syn-Bios is an Italy-based company, the company has been engaged in the R&D, manufacturing, and worldwide marketing of chemicals principally for the leather tanning industry.
Pidilite Industries shares have gained 4 percent in the last six months and 12 percent in a year.
The company’s revenue increased 2 percent yearly, from Rs 3,011 crore in Q2FY23 to Rs 3,076 crore in Q2FY24. Net profit has grown by 36 percent, from Rs 338 crore to Rs 459 crore. An EBITDA Margin improved by 23.2 percent to 604 bps in Q2FY23 from 47 bps in Q1FY24.
Pidilite Industries Limited is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY products, and polymer emulsions in India. The company has more than 6,150 stock-keeping units with more than 900 products.
The company markets its products under the brand names Fevicol, M-Seal, Fevikwik, Fevistik, Roff, Dr. Fixit, Fevicryl, Motomax, Hobby Ideas, and Araldite. The company plans to invest up to Rs 100 crore in a period of two years for the growth of its business.
The company has a market share of over 70% in the Indian adhesive market. And also has a significant international presence, with subsidiaries in the United States, Europe, the Middle East, and Africa.
In the recent shareholding, the company promoters hold 69.86 percent stake in the company,while Foreign Institutional Investors hold 11.44 percent and Domestic Institutional Investors hold 8.01 percent.
Written by Omkar Chitnis
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