Shares of Pidilite Industries marked their largest intraday drop in four months on Wednesday after the materials manufacturer reported mixed numbers for the fourth quarter.

What Happened: The company’s consolidated net profit rose by 19.3% year-on-year to ₹364 crore in the quarter, while revenue grew by 7.9% to ₹2,902 crore, falling short of street estimates.

Analyst View: Global brokerages Citi and Macquarie maintained their negative stance on Pidilite following the Q4 results. However, Goldman Sachs and Nuvama Institutional Equities upheld a “buy” rating on the stock.

Citi retained a “sell” rating for Pidilite, citing that the company’s earnings missed its estimates across all fronts. The brokerage set the target price at ₹2,200 per share, implying a downside of over 24% from the last closing price.

See Also: Vodafone Idea Shares Rise 3% After Brokerages Pen Post-FPO Growth Prospects

Macquarie retained its “underperform” rating on Pidilite Industries stock with a target price of ₹2,300, attributing it to Q4 EBITDA missing estimates. The brokerage highlighted that increased brand investments contributed to the growth in other expenses for the company.

Despite both urban and rural markets showing growth in Q4, with rural markets outpacing urban growth, analysts at Macquarie expressed concerns about near-term demand.

On the contrary, Nuvama Institutional Equities maintained a “buy” rating on Pidilite with a target price of ₹3,220 per share. However, the brokerage stated it would reassess estimates and target price after the earnings conference call scheduled for later.

Goldman Sachs remained bullish on the Fevicol maker following Q4 results, citing continued strong double-digit growth. It suggested that a significant portion of the gross margin was likely invested in advertising and promotion. The management’s commentary on near-term demand softness surprised analysts.

Price Action: Pidilite’s share price was down 4.31% at ₹2,823.15 in afternoon trade on Wednesday.

Read Next: Disney+Hotstar Loses 23 Lakh Subscribers, Star India Revenue Slumps 17%