However, it wasnt the same this year. The company owns 70% of the market share in the waterproofing segment, and it saw a huge revenue decline during the nationwide lockdown, as its services are not included under the essential item lists. And, even as states began unlocking in phases, the pessimism around allowing carpenters, painters and plumbers into houses has kept demand under constraint and is expected to impact the companys sales larger than ever before.

With COVID hitting peoples pockets, analysts think home renovation is not going to be on peoples minds anytime soon. And, with high real estate prices, buying a new house is out of the question. That is the reason Pidilites shares have declined nearly 3% since the beginning of the first quarter, till date.

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According to various analysts reports, the company is slated to see a revenue decline of almost 64%.

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Investors wait for management commentary However, the management is siding more in favour of caution than hope. These low levels of prices are not going to benefit Pidilite for long-time, but in the short term, there will be gains which will accrue to them, the company told analysts.

Reading June sales and extrapolating it could be misleading, as there is pent-up demand which may be coming through. This is especially true for categories like waterproofing where remedial work is happening just before the monsoon season begins, the company told analysts.Advertisement

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Pidilite shareholders are paying the price for the real estate slowdown weak pre-monsoon sales to drag reven - Business Insider India