Adhesive companys low price scrip stock of 2009 now becomes gold mine for investors!

The scrip of Pidilite Industries, which was one of the low price scrip stocks trading under Rs 100 per share in 2009, has jumped by more than 4,000 per cent, which is quite phenomenal! On Friday, the shares of Pidilite Industries made a fresh all-time high of Rs 1,992.10 per share.   

In the last one month, Pidilite Industries rose by around 11.40 per cent while the scrip gained 6.61 per cent only in the last five days.  

The key attribute for the recent rise in the stock price is the stellar financial performance in Q4FY21 wherein, the company reported consolidated net sales of Rs 2,235.52 crore for Q4FY21, jumping by 44.72 per cent from Rs 1,544.68 crore reported in Q4FY20. The net profit for Q4FY21 significantly rose by 95.72 per cent to be Rs 306.12 crore compared to Rs 156.41 crore reported in Q4FY20.   

Verticals across the brand has also registered robust growth, primarily driven by sustained demand momentum in the rural areas as well as in urban geographies. Ingraining increased investors’ confidence, given the company’s strong market position, it is thought to be better placed to partially pass on any inflationary pressure and gain market share.  

On Friday, the shares of Pidilite Industries were seen trading at Rs 1,986.95 per share, up by 2.67 per cent to Rs 51.75 per share.