The chart is pretty much self explanatory.
EMA 100 acts as a very strong support. Price has bounced 3 times in the last 3 years including pandemic from EMA 100.
Trend Analysis shows Support has been reached based on Black lines drawn on the chart.
It can be easily seen that every fall of 25-30% over 6 to 8 months is followed by a 100-125% increase over 2 years on an average.
There is uncertainty regarding crude prices which is the main raw material for Pidilite and the PE ratio of 90 seems dicey but again Pidilite has always enjoyed premium valuation since inception.
I believe these are temporary hurdles and the company will come out strong as Market Cap to Sales ratio is pretty good. Margins will increase overtime as crude relaxes.
EMA 100 acts as a very strong support. Price has bounced 3 times in the last 3 years including pandemic from EMA 100.
Trend Analysis shows Support has been reached based on Black lines drawn on the chart.
It can be easily seen that every fall of 25-30% over 6 to 8 months is followed by a 100-125% increase over 2 years on an average.
There is uncertainty regarding crude prices which is the main raw material for Pidilite and the PE ratio of 90 seems dicey but again Pidilite has always enjoyed premium valuation since inception.
I believe these are temporary hurdles and the company will come out strong as Market Cap to Sales ratio is pretty good. Margins will increase overtime as crude relaxes.