As a part of our timeless leader series, We recommended Pidilite - FEVICOLed to Growth at Rs. 430 back in 26Nov2014. Over the last few years the company stock price has increased substantially and the company is now trading at Rs. 1172, indicating returns of 173% (2.73 times).

Pidilite is a phenomenal company and should be able to continuously grow well from here as well. Recently Pidilite also completed a buyback program at Rs. 1000 post which stock further rallied and is trading at Rs. 1172.

Keeping in mind that there are many phenomenal businesses like Pidilite having better growth prospects and trading at similar but expensive valuations, we think it makes sense to Exit from Pidilite and book profits at Rs. 1172.

We would like to participate in the stock again either after a decent time correction or maybe reconsider the same if the valuations are more appealing.

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Dhruvesh Sanghvi is a Research Analyst registered with SEBI having registration No: INH000000875. Definitions of Rating system: 1. Explanation of Type of Report

• Fresh Recommendation Reports: These reports are first-time initiation reports on the concerned stock. Usually these reports are followed by updates on the same.
• Update Reports: These reports include result update, event updates, annual report analysis and/or any other information that may be useful for the investor in relation to the concerned stock. Most of these update reports will have our current view on the same.

2. Explanation of Time Horizon: All the Fresh Recommendation reports in the investing section have a view of 3-5 years. 3. Explanation of Views: Views can be any one among these - Buy, Buy on Dips, Hold, Sell Partial, Exit

• Buy: This means buying the concerned stock at current market price.
• Buy on Dips: This means buying the concerned stock on the explained fall in price.
• Hold: This means holding the concerned stock until further update.
• Sell Partial: This means selling half of the existing position in the concerned stock.
• Exit: This means completely exiting the concerned stock.

4. Explanation of Indicative Target Price: Achievement of Target Price does not imply Exit / Sell Partial. We will explicitly release Exit/ Sell Partial Report at an appropriate time. If required, Indicative Target Price could be revised based upon business performance, market environment or any other important event. DISCLOSURES by RESEARCH ANALYST UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 is as under: • Introduction: Prospero Tree Financial Services is an independent equity research proprietorship firm of Mr Dhruvesh Sanghvi. • Business Activity: Prospero Tree Financial Services is committed in providing honest views, opinions and recommendations on financial markets opportunities. • Report Written by: Dhruvesh Sanghvi • Disciplinary History: None • Terms & Conditions: https://www.prosperotree.com/termsofuse • Details of Associates: Not Applicable • Disclosure with regards to ownership and Material Conflicts of Interest: 1. Neither Dhruvesh Sanghvi, Prospero Tree Financial Services, its associates, its Research analysts hold any position in the subject company. 2. Neither Dhruvesh Sanghvi, Prospero Tree Financial Services, its associates, Research Analysts, nor its relatives, have more than 1% ownership of the subject company at the end of the month immediately preceding the date of publication of this report. 3. Neither Dhruvesh Sanghvi, Prospero Tree Financial Services, its associates, Research Analyst nor its relatives, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance. • Disclosure with regards to Receipt of Compensation: 1. Neither Dhruvesh Sanghvi, Prospero Tree Financial Services or its associates, or Research Analyst has received any compensation or other benefits from the subject company or the third party in connection with the research report in past twelve months. 2. Neither Dhruvesh Sanghvi, Prospero Tree Financial Services or its associates, or Research Analyst have managed or co-managed public offering or securities for the subject company in past twelve months. • Other Disclosures: 1. The Research Analyst has not served as an officer, director, or employee of the subject company. 2. The Research Analyst is not engaged in market making activity for the subject company.

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