Home / Companies / News /  Pidilite Q3 Earnings: Company grants 17,500 stock options under ESOP

Pidilite, the maker of Fevicol adhesive, said it has granted 17,500 stock options under the Employee Stock Option Plan-2016 to the eligible employees on January 24, 2023.

“This is to inform that the Company has granted 17,500 stock options under ESOP-2016 to the eligible employees of the Company on 24th January, 2023," the company said in a regulatory filing.

For 5,000 shares, the vesting date will be June 1, 2025 with exercise price of Re 1; for another 5,000 it will be June 1, 2026; for 7,500 shares vesting date will be June 1, 2027 with exercise price of 2,205.

stock options under ESOP-2016
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stock options under ESOP-2016

The company announced its third quarter earnings today. It reported a 15% fall in quarterly profit, hit by higher input costs and weak demand. Pidilite's consolidated net profit fell to 307 crore in the quarter ended December 31 and consolidated revenues grew only by 5.2% YoY to 3,002.7 crore. Gross margins of the company contracted by 175 bps YoY to 41.8%.

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The Pidilite share price started the day at a discount after the announcement of third quarter results on January 24. The stock hit a low of 2,307 during the day after opening at 2,311.30. At the time of writing this copy, the stock was trading 3%, or 71.4, lower on disappointing numbers.

“Margins appear to have bottomed out with priced inventory with 80bps GM expansion QoQ. VAM prices have dropped sharply starting from 2Q23 and spot VAM prices trade at USD 1142/MT (-53% from peak). We expect the impact of fall in VAM prices to be more visible in 4Q23. We have a HOLD rating on the stock with a target price of 2,679. The stock currently trades at 56.7x/45.4X FY24/FY25 EPS," said Amnish Aggarwal – Head of Research, Prabhudas Lilladher.

Motilal Oswal has maintined Neutral rating on the stock with a target price of 2,382 after t.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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