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Fevicol-maker Pidilite Industries Ltd share price dropped sharply on Thursday as the chemical major missed the Street expectations on most counts and brokerages revised their target price.

After opening at the day's low of Rs 2,050, Pidilite Industries share price was quoting at Rs 2,107.55 apiece, down almost 2.5 percent, on NSE at 10.02 am.

The stock has corrected over 15 percent so far this year and more than 10 percent in the last one month. The stock has fallen over 21 percent from the 52-week high of Rs 2,764.

Pidilite Industries net sales came in at Rs 2,507 crore in the quarter ended March 2022, posting a 12.15 percent jump from Rs 2,235.5 crore in March 2021. However, it came below a CNBC-TV18 poll estimate of Rs 2,593 crore.

Net profit stood at Rs 254.3 crore in the fourth quarter, almost 17 percent lower than Rs 306 crore in March last year and even lower than the CNBC-TV18 estimate of Rs 350 crore.

Margin came in at 16 percent - much lower than the CNBC-TV18 poll estimate of 20 percent.

The company, however, said that they are currently focused on volume growth despite rising input prices, particularly vinyl acetate monomer (VAM).

"VAM prices are still between $2,500 and $2,600 a tonne. This is completely at an all-time high. Across the world, the current geopolitical tensions are not helping either. We have therefore taken a set of pricing actions last year, we have taken some more pricing in some categories in May this year. Our whole approach has been that let us try and pass on only 75 percent of the inflation and try and become more efficient," Bharat Puri, Managing Director, Pidilite Industries told CNBC-TV18.

Puri also said that the supply and demand mismatch is not the issue, it is the supply constraints that are causing these raw material price hikes.

"We do believe that in the second half of the year, we will see at least some moderation. If not moderation, at least stabilisation and we are confident that over a period of time, we will come back to our range. Right now our focus is to manage the current situation and manage also volume growth, because that is something that will endure," Puri added.

#4QWithCNBCTV18 | Pidilite Industries posted a muted set of Q4 numbers. Speaking to @blitzkreigm Bharat Puri, MD at Pidilite Industries says they are focussing on volume growth currently. Will see margin recover by H2, he adds. pic.twitter.com/NPIDXjDTJQ

— CNBC-TV18 (@CNBCTV18News) May 19, 2022

Meanwhile, brokerages have reduced their target price on the chemical major's stock price.

Macquarie has an "underperform" rating on Pidilite with target price revised to Rs 1,850 per share. The brokerage also reduced its FY23/24 earnings per share estimate by 5 percent to factor in the fourth quarter miss and near-term headwinds.

JP Morgan has set a target price of Rs 2068 with an "underperform" rating.

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First Published:May 19, 2022 3:41 PM IST