2 High-Potential Stocks to Buy Now: Pidilite Industries and Hindustan Unilever
Discover two promising stocks recommended by the Trade Brains Portal, offering an upside potential of up to 20%. Dive into the financial health and growth prospects of Pidilite Industries and Hindustan Unilever.
Pidilite IndustriesHindustan UnileverStock MarketFmcgChemicalsReal EstateJun 03, 2025
Real Estate:In the dynamic world of stock investing, identifying high-potential stocks can significantly boost your portfolio. The Trade Brains Portal has recommended two stocks, one from the chemicals sector and another from the FMCG sector, with an upside potential of up to 20%. Let's delve into the details of these stocks and their market performance.
Pidilite Industries Ltd
Key Metrics:
- CMP : ₹ 3,087
- Target : ₹ 3,650
- Upside : 18%
- Time Frame : 16-24 Months
Why it’s Recommended
Pidilite Industries is a leader in consumer and specialty chemicals in India, dominating the adhesives and sealants sector. The company’s extensive product line includes adhesives, sealants, waterproofing solutions, automotive and construction chemicals, arts and crafts items, industrial resins, organic pigments, and polymers. As of FY 25, Pidilite operates 68 manufacturing units, exports over 1,300 SKUs yearly, and has more than 60 distribution centers nationwide. Notable brands in its portfolio include Fevicol, M-Seal, Fevi Kwik, Dr. Fixit, and Roff.
Over the past decade, Pidilite has achieved an impressive consolidated net sales growth of 11% CAGR. It has enhanced its EBITDA margin, which has steadily increased from 16% in FY15 to 23% in FY25. In FY25, net sales reached Rs 13,094 crore, marking a 6% rise from Rs 12,337 crore in FY24. EBITDA for FY25 was Rs 3,013 crore, reflecting an 11% growth from Rs 2,707 crore in FY24. Profit before tax and exceptional items for FY25 was Rs 2,848 crore, demonstrating a 16% year-over-year growth. Profit after tax for FY25 was Rs 2,096.17 crore, compared to Rs 1,747.42 crore in FY24, indicating a 20% increase.
Pidilite maintains a diversified portfolio, serving various sectors such as infrastructure, real estate, packaging, paper, leather, and paints. It is also exploring high-growth fields like electronics, EVs, and semiconductors, having partnered exclusively with CollTech Group, known for its expertise in electronics adhesive solutions. This collaboration could significantly enhance both companies’ foothold in the electronics market. Moreover, the Roff brand has substantial growth potential fueled by the tile market, valued at Rs 43,000 crore as of FY24 and anticipated to expand to Rs 62,000 crore by 2027. Key growth drivers include deepening market penetration in rural and semi-urban areas and pursuing international expansion through diverse business models. From a broader perspective, the specialty chemicals market in India is expected to outpace China’s growth, increasing its market share from 3-4% in 2021 to 6% by 2026, according to a CRISIL report.
Risk Factor
A large portion of Pidilite’s raw materials are exposed to crude oil price volatility. Key materials like vinyl acetate monomer (VAM), synthetic resins, and other derivatives are crude oil-based and are used by Pidilite. The company is prone to geopolitical and economic uncertainties as well as volatility in input costs due to its international subsidiaries in Bangladesh, Sri Lanka, and African countries.
Hindustan Unilever Ltd
Key Metrics:
- CMP : ₹ 2,368
- Target : ₹ 2850
- Upside : 20%
- Time Frame : 12-14 Months
Why it’s Recommended
Hindustan Unilever is the largest FMCG company in India, boasting a varied product lineup with over 50 brands that reach 9 out of 10 Indian households. HUL has a robust distribution network featuring 35 distribution hubs, more than 3,500 distributors, and over 9 million outlets selling its products nationwide. The company generates revenue across multiple segments, including home care, beauty and wellness, food, and personal care. With 28 owned factories and 2 lighthouse factories, it produces 75 billion units each year. HUL has 19 brands that each achieve over Rs 1,000 crore in annual sales, alongside 3 brands nearing that threshold.
For FY25, HUL reported revenue from operations of Rs 63,121 crore, marking a 2% year-over-year growth. EBITDA for FY25 reached Rs 15,868 crore, an increase from Rs 15,474 crore in FY24, representing a 2.5% year-over-year growth. Profit after tax was Rs 10,671 crore, reflecting a 3.7% year-over-year growth. HUL is currently on a journey to premiumize its brand portfolio, which drives an increase in acquisitions of key premium brands. It has finalized a 90.5% stake acquisition in Minimalist, which achieved a turnover of over Rs 500 crore in FY25.
HUL upholds strong margins across all segments, with Home Care at 19%, Beauty & Wellbeing at 32%, Personal Care at 18%, and Foods at 18%. The company anticipates a gradual improvement in upcoming quarters, driven by portfolio transformation and favorable macroeconomic conditions. According to medium-term guidance, the EBITDA margin is expected to remain within a healthy range of 22-23%. On the macro front, the industry is being driven by rural markets, and urban demand is shifting towards e-commerce. Factors such as a positive monsoon forecast, inflation at a 6-year low, and tax slab adjustments may enhance demand shortly.
Risk Factor
HUL faces intense competition from organized and unorganized FMCG players across segments and products. Due to low entry barriers, low switching costs, and pricing pressures, the company has been growing at a slow pace since last year. The company also faces commodity risk, as commodities like palm oil saw a jump of 18% in FY25, which could impact the company’s profit margins.
Market Recap 2nd June, 2025
Today, the market opened at 24,669.70, lower than Friday’s closing of 24,750.70 points. It touched an intraday low of 24,526.15 and closed at 24,716.60, a decline of -0.14% or 34.10 points. The Nifty 50 index breached the 20-day EMA while it stayed above the 50/100/200 EMA. The RSI of the Nifty 50 index stood at 54.70. Sensex, on the other hand, also opened at 81,214.42, which was lower than Friday’s closing of 81,451.01 points. It touched the intraday low of 80,654.26, breaching the 20-day EMA. It closed at 81,373.75, declining -0.09% or 77.26 points. The RSI of Sensex stood at 54.69.
The Nifty PSU index was among the top gainers today due to rate cut expectations from the RBI in the next MPC meeting. It rose 2.43%, or 169.30 points, and closed at 7,145.3, with Bank of Maharashtra and Indian Overseas Bank leading the index. Bank of Maharashtra jumped 6.82% and closed at Rs 57.66, whereas Indian Overseas Bank jumped 5.42% and closed at Rs 42.
The Nifty Realty index was also among the top-performing indices today, rising by 2.18%, or 20.70 points, closing at 970.05. Brigade Enterprises Ltd. was the top gainer, growing by 5.29%, followed by Prestige Estates, which was up by 4.29%, as the company is set to launch housing projects worth Rs 42,000 crore, and Anant Raj Ltd. saw an increase of 2.84%.
The Nifty IT index was among the top losers today; it declined by -0.69%, or 258.55 points, and closed at 37,063 points. Persistent Systems and Mphasis were among the biggest laggards, falling more than 2%. Nifty Metal was also in the red today due to Trump’s speech on Friday to raise the tariffs by 50% on steel imports. It fell by -0.48%, or 44.30 points, and closed at 9,148.95 points, with Lloyds Metals & Energy Ltd. and JSW Steel falling 2.76% and 1.25%, respectively.
Asian markets were also mixed, with some indices showing gains and others declining. The overall market sentiment remains cautious, with investors keeping a close eye on global economic indicators and domestic political developments.
Pidilite Industries Ltd
Key Metrics:
- CMP : ₹ 3,087
- Target : ₹ 3,650
- Upside : 18%
- Time Frame : 16-24 Months
Why it’s Recommended
Pidilite Industries is a leader in consumer and specialty chemicals in India, dominating the adhesives and sealants sector. The company’s extensive product line includes adhesives, sealants, waterproofing solutions, automotive and construction chemicals, arts and crafts items, industrial resins, organic pigments, and polymers. As of FY 25, Pidilite operates 68 manufacturing units, exports over 1,300 SKUs yearly, and has more than 60 distribution centers nationwide. Notable brands in its portfolio include Fevicol, M-Seal, Fevi Kwik, Dr. Fixit, and Roff.
Over the past decade, Pidilite has achieved an impressive consolidated net sales growth of 11% CAGR. It has enhanced its EBITDA margin, which has steadily increased from 16% in FY15 to 23% in FY25. In FY25, net sales reached Rs 13,094 crore, marking a 6% rise from Rs 12,337 crore in FY24. EBITDA for FY25 was Rs 3,013 crore, reflecting an 11% growth from Rs 2,707 crore in FY24. Profit before tax and exceptional items for FY25 was Rs 2,848 crore, demonstrating a 16% year-over-year growth. Profit after tax for FY25 was Rs 2,096.17 crore, compared to Rs 1,747.42 crore in FY24, indicating a 20% increase.
Pidilite maintains a diversified portfolio, serving various sectors such as infrastructure, real estate, packaging, paper, leather, and paints. It is also exploring high-growth fields like electronics, EVs, and semiconductors, having partnered exclusively with CollTech Group, known for its expertise in electronics adhesive solutions. This collaboration could significantly enhance both companies’ foothold in the electronics market. Moreover, the Roff brand has substantial growth potential fueled by the tile market, valued at Rs 43,000 crore as of FY24 and anticipated to expand to Rs 62,000 crore by 2027. Key growth drivers include deepening market penetration in rural and semi-urban areas and pursuing international expansion through diverse business models. From a broader perspective, the specialty chemicals market in India is expected to outpace China’s growth, increasing its market share from 3-4% in 2021 to 6% by 2026, according to a CRISIL report.
Risk Factor
A large portion of Pidilite’s raw materials are exposed to crude oil price volatility. Key materials like vinyl acetate monomer (VAM), synthetic resins, and other derivatives are crude oil-based and are used by Pidilite. The company is prone to geopolitical and economic uncertainties as well as volatility in input costs due to its international subsidiaries in Bangladesh, Sri Lanka, and African countries.
Hindustan Unilever Ltd
Key Metrics:
- CMP : ₹ 2,368
- Target : ₹ 2850
- Upside : 20%
- Time Frame : 12-14 Months
Why it’s Recommended
Hindustan Unilever is the largest FMCG company in India, boasting a varied product lineup with over 50 brands that reach 9 out of 10 Indian households. HUL has a robust distribution network featuring 35 distribution hubs, more than 3,500 distributors, and over 9 million outlets selling its products nationwide. The company generates revenue across multiple segments, including home care, beauty and wellness, food, and personal care. With 28 owned factories and 2 lighthouse factories, it produces 75 billion units each year. HUL has 19 brands that each achieve over Rs 1,000 crore in annual sales, alongside 3 brands nearing that threshold.
For FY25, HUL reported revenue from operations of Rs 63,121 crore, marking a 2% year-over-year growth. EBITDA for FY25 reached Rs 15,868 crore, an increase from Rs 15,474 crore in FY24, representing a 2.5% year-over-year growth. Profit after tax was Rs 10,671 crore, reflecting a 3.7% year-over-year growth. HUL is currently on a journey to premiumize its brand portfolio, which drives an increase in acquisitions of key premium brands. It has finalized a 90.5% stake acquisition in Minimalist, which achieved a turnover of over Rs 500 crore in FY25.
HUL upholds strong margins across all segments, with Home Care at 19%, Beauty & Wellbeing at 32%, Personal Care at 18%, and Foods at 18%. The company anticipates a gradual improvement in upcoming quarters, driven by portfolio transformation and favorable macroeconomic conditions. According to medium-term guidance, the EBITDA margin is expected to remain within a healthy range of 22-23%. On the macro front, the industry is being driven by rural markets, and urban demand is shifting towards e-commerce. Factors such as a positive monsoon forecast, inflation at a 6-year low, and tax slab adjustments may enhance demand shortly.
Risk Factor
HUL faces intense competition from organized and unorganized FMCG players across segments and products. Due to low entry barriers, low switching costs, and pricing pressures, the company has been growing at a slow pace since last year. The company also faces commodity risk, as commodities like palm oil saw a jump of 18% in FY25, which could impact the company’s profit margins.
Market Recap 2nd June, 2025
Today, the market opened at 24,669.70, lower than Friday’s closing of 24,750.70 points. It touched an intraday low of 24,526.15 and closed at 24,716.60, a decline of -0.14% or 34.10 points. The Nifty 50 index breached the 20-day EMA while it stayed above the 50/100/200 EMA. The RSI of the Nifty 50 index stood at 54.70. Sensex, on the other hand, also opened at 81,214.42, which was lower than Friday’s closing of 81,451.01 points. It touched the intraday low of 80,654.26, breaching the 20-day EMA. It closed at 81,373.75, declining -0.09% or 77.26 points. The RSI of Sensex stood at 54.69.
The Nifty PSU index was among the top gainers today due to rate cut expectations from the RBI in the next MPC meeting. It rose 2.43%, or 169.30 points, and closed at 7,145.3, with Bank of Maharashtra and Indian Overseas Bank leading the index. Bank of Maharashtra jumped 6.82% and closed at Rs 57.66, whereas Indian Overseas Bank jumped 5.42% and closed at Rs 42.
The Nifty Realty index was also among the top-performing indices today, rising by 2.18%, or 20.70 points, closing at 970.05. Brigade Enterprises Ltd. was the top gainer, growing by 5.29%, followed by Prestige Estates, which was up by 4.29%, as the company is set to launch housing projects worth Rs 42,000 crore, and Anant Raj Ltd. saw an increase of 2.84%.
The Nifty IT index was among the top losers today; it declined by -0.69%, or 258.55 points, and closed at 37,063 points. Persistent Systems and Mphasis were among the biggest laggards, falling more than 2%. Nifty Metal was also in the red today due to Trump’s speech on Friday to raise the tariffs by 50% on steel imports. It fell by -0.48%, or 44.30 points, and closed at 9,148.95 points, with Lloyds Metals & Energy Ltd. and JSW Steel falling 2.76% and 1.25%, respectively.
Asian markets were also mixed, with some indices showing gains and others declining. The overall market sentiment remains cautious, with investors keeping a close eye on global economic indicators and domestic political developments.
Frequently Asked Questions
What is the current market price of Pidilite Industries?
The current market price (CMP) of Pidilite Industries is ₹ 3,087.
What is the target price for Pidilite Industries and what is the potential upside?
The target price for Pidilite Industries is ₹ 3,650, offering a potential upside of 18%.
What are the key risk factors for Pidilite Industries?
Pidilite Industries is exposed to crude oil price volatility, geopolitical and economic uncertainties, and volatility in input costs due to its international subsidiaries.
What is the current market price of Hindustan Unilever?
The current market price (CMP) of Hindustan Unilever is ₹ 2,368.
What is the target price for Hindustan Unilever and what is the potential upside?
The target price for Hindustan Unilever is ₹ 2,850, offering a potential upside of 20%.
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