Stock Review: PIDILITE INDUSTRIES

The market leader in the niche businesses of adhesives, sealants and construction chemicals. While its Fevicol brand is synonymous with adhesives in India, the company has created strong brand awareness for its entire product range, which gives it strong pricing power and helps maintain margins via price increases. Pidilite's ability to develop new products would enable it to maintain its leadership position. Successful turnaround of its loss-making subsidiaries in Brazil and Egypt, coupled with revenue contribution from elastomer (a new product, from 2012-13 onwards) would be among key triggers.