Pidilite is on a high!

Shares of Pidilite Industries Ltd., the makers of Fevicol, were the top gainers in the futures and options market after the adhesive maker reported a sharp surge in quarterly earnings on the back of an equally sharp drop in raw material costs.

Pidilite said its first quarter Net Profit rose 34 percent to 225 crore rupees compared with 168.5 crore rupees in the same quarter a year ago. Sales during April-June gained 9.3 percent to 1,469 crore rupees from 1,344 crore rupees in the year ago period.

Pidilite rose 2.7 percent, or 14.5 rupees, to 557 rupees on the National Stock Exchange, where 1.7 lakh shares were traded in the first 20 minutes of trade compared with the 5-day average of 2 lakhs.

Pidilite's market capitalisation has gained 53 percent in the past one year to 27,776 crore rupees as investors sought the safety of predictable revenue and profit streams from companies that own popular brands.
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