July 26, 2005

Checking on pidilite results

Just saw pidilite industries results yesterday. The topline growth in consumer goods is still very strong ( 15% +). The industrial division continues to do well too. The bottomline was under pressure which i expected with the oil prices being high and one of the key raw materials being VAM which is dependent on crude prices.

Pidilite continue to do well, increasing market shares in the key categories ( i need to figure, how the new products are doing ).

The only worry which i have had with pidilite, which has prevented me from expanding on my holding, is what would the management do with all the free cash flows. The past record has been patchy. They have invested in windmills !! loaned to subsidiary companies and so on. somehow i have not been to been able to be comfortable on this factor.

But fundamentally the business continues to perform well

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