Per my understanding growth for adhesive companies, particularly these days, is coming from rural and semi-urban areas. The growth in these areas has remained muted until now. That’s are now picking pace. The reason behind my thinking is that urban villas and apartments hardly have enough space for discretionary furniture, and due to paucity of time and space, most customers opt to get readymade furniture. Majority of furniture sold in cities, particularly from the likes of IKEA and Amazon’s Solimo brand requires assembly via screws and bolts rather than via adhesion.
Per Pidilite, in their latest concall, they mentioned that they should see better numbers in the upcoming quarter subject to a lot of ifs and buts (general election requires a lot of transportation eating up capacity for orgs to transport their goods, geo-political affairs etc.). They also mentioned that raw material prices appears to be bottoming out.
My belief is that for Jyoti Resin, the numbers should be better than industry average due to their smaller size (require less transportation, less raw material required etc.) and a favorable base effect.
Disc: Invested
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