Neutral Pidilite Industries Ltd For Target Rs. 3,000 by Motilal Oswal Financial Services Ltd

* We expect demand recovery in 1Q, though rural growth continues to outperform urban growth. Pidilite’s core category can witness some headwinds due to the subdued demand environment at the macro level.
* We expect consolidated revenue to grow 10% YoY and volume to grow 12% during the quarter.
* We expect gross margin to expand 120bp YoY to 55%, driven by a YoY decline in VAM prices.
* Outlook on domestic and international demand is a key monitorable.
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