Pidilite Industries Ltd - Stock Valuation and Financial Performance

BSE: 500331 | NSE: PIDILITIND | Chemicals | Large Cap

Pidilite Inds. Share Price

2,823.30 0.70 0.02%
as on 26-Mar'25 09:09

DeciZen - make an informed investing decision on Pidilite Inds.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Pidilite Industries stock performance -

P/E Ratio (CD):
73.46
Market Cap:
1,43,571.2 Cr.
52-wk low:
2,620.2
52-wk high:
3,414.4

Is Pidilite Industries Ltd an attractive stock to invest in?

1. Is Pidilite Industries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Pidilite Industries Ltd is a good quality company.

2. Is Pidilite Industries Ltd undervalued or overvalued?

The key valuation ratios of Pidilite Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Pidilite Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Pidilite Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Pidilite Inds.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Pidilite Industries Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 32.1%45.7%40.2%37.8%34.4%33.8%29.9%26.5%25.2%30.6%-
Value Creation
Index
1.93.12.62.42.12.01.71.41.21.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,8445,3615,6176,0787,0787,2947,2939,92111,79912,38312,901
Sales YoY Gr.-10.7%4.8%8.2%16.4%3.1%-0%36%18.9%5%-
Adj EPS 9.915.716.918.918.32222.324.125.53538.4
YoY Gr.-58.2%7.6%11.7%-3%20%1.3%8.4%5.6%37.4%-
BVPS (₹) 44.351.467.570.281.587.5109.6125.3141165.1182.3
Adj Net
Profit
5098068679609311,1171,1321,2271,2961,7801,955
Cash Flow from Ops. 5529077947968451,2801,3929551,5582,724-
Debt/CF from Ops. 0.10.10.10.20.10.10.20.30.10.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11%11.8%19.3%5%
Adj EPS 15%13.8%16.3%37.4%
BVPS15.8%15.2%14.7%17.1%
Share Price 16.8% 17.4% 4.7% -6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
24.132.928.427.324.12622.520.51922.822.1
Op. Profit
Mgn %
162222.622.119.521.723.218.917.12222.9
Net Profit
Mgn %
10.415.115.515.913.215.415.512.411.114.515.2
Debt to
Equity
00000000.100-
Working Cap
Days
979610211812112614312712011390
Cash Conv.
Cycle
5248515658606158605146

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 22.10%

Sales growth is growing at healthy rate in last 3 years 19.30%

Net Profit is growing at healthy rate in last 3 years 16.27%

Sales growth is not so good in last 4 quarters at 6.09%

Latest Financials - Pidilite Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 39 38.4
TTM Sales (₹ Cr.) 11,811 12,901
BVPS (₹.) 180.3 182.3
Reserves (₹ Cr.) 9,120 9,222
P/BV 15.65 15.48
PE 72.42 73.46
From the Market
52 Week Low / High (₹) 2620.15 / 3414.40
All Time Low / High (₹) 3.04 / 3414.40
Market Cap (₹ Cr.) 1,43,571
Equity (₹ Cr.) 50.9
Face Value (₹) 1
Industry PE 51.3

Quarterly Results

 Mar'24 YoY Gr. Rt. %Jun'24 YoY Gr. Rt. %Sep'24 YoY Gr. Rt. %Dec'24 YoY Gr. Rt. %
Sales (₹ Cr.) 2,902 7.93,395 3.73,235 5.23,369 7.6
Adj EPS (₹) 6.9 23.911.2 21.110.5 18.810.9 8.2
Op. Profit Mgn % 19.88 281 bps23.94 235 bps23.77 167 bps23.70 -2 bps
Net Profit Mgn % 12.28 160 bps16.85 236 bps16.74 179 bps16.55 23 bps

Management X-Ray of Pidilite Inds.:

Shareholding Pattern

JavaScript chart by amCharts 3.21.5
JavaScript chart by amCharts 3.21.5Promoters:69.6%Institutions:20.93%Non-Institutions:9.47%

Promoter's Holding & Share Pledging

JavaScript chart by amCharts 3.21.5Sep22Dec22Mar23Jun23Sep23Dec23Mar24Jun24Sep24Dec240%10%20%30%40%50%60%70%80%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Valuation of Pidilite Inds.

MRP
spaceLock icon
MOS
spaceLock icon%
DP
spaceLock icon
Base EPS
spaceLock icon
DPS
spaceLock icon
MRP: ₹ 0
DP: ₹0
Base EPS ₹:
DPS ₹:
MOS (%):
Expected EPS Growth Rate:
0%
Base 0%
50%
Expected Rate of Return:
0%
Base 0%
50%
Future PE:
0
Base 0
200
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max

Event Update

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Analyst's Notes

Pidilite Industries Ltd: Q2FY24 result update - 17 Nov 2023

Particulars

Q2FY24

(Rs. Cr)

YoY Trend

Comments

Revenue

3,076

+2%

Driven by volume growth of 8%
EBITDA

678

+36%

 
EBITDA Margin

22%

+500 bps

 
PAT

459

+36%

 

Robust performance. Company doubling its investment into advertisement and promotion.

Pidilite Industries: Q1FY24 Result Update - 19 Aug 2023

Particulars

Q1FY24

YoY Trend

Comments

Revenue

3,275

+6%

 While consumer side delivered 10% growth, B2B   business declined 8% on muted export and end user   demand

EBITDA

706

+33%

 

EBITDA Margin

22%

+449 bps

 Lower input cost and operating efficiencies YoY/QoQ

PAT

474

+32%

 

Good results on double digits volume growth in domestic business with rural markets growing faster than urban.

 

Pidilite: Q2FY23 Result Update - 15 Nov 2022

Market Cap = INR 135,970 cr

CMP =   INR 2,675

P/E = 105 X TTM

Results

INR Crore

YoY Growth

Comments

Revenue

3,011

14.66%

Driven by consumer and bazaar segment growth of 35% & B2B segment growth of 33%.

EBITDA

500

-5%

Due to all time high prices of raw materials, especially VAM which contributes ~25% to raw material prices.

  

Click here for 10 year X-ray

 

Key Highlights:

  • Calibrated price increases as well as a sharp focus on operational efficiencies helped maintain EBITDAmargins in line with the previous 2 quarters.
  • The consumption rates of  key raw material, VAM, has continued to increase during the quarter. Q2 VAMconsumption rate was $2,491 per ton versus the first quarter -- by the previous quarter being $2,231 per ton.
  • Volume growth for this quarter at 1.2~1.5% for consumer & bazaar, approximately the same for B2B as well.
  • 10-15% premium is what the company tries to maintain across all its product categories, if the the premium increases above this number the volumes start to reduce.
  • Fully priced in, no more price increase expected.

 

Management Outlook:

  • Focus is to provide profitable volume growth.
  • Current ordering rate of VAM is in the range of $1200-$1400 per tonne which is significantly lower than the last quarter, so margin expansion expected.
  • However, other raw materials which contribute ~ 75% of raw material basket haven’t yet come back down to their pre covid levels.
  •  Core categories to grow at 1-1.5x the GDP growth, growth categories at 2-5x the GDP growth. 

Pidilite: Result Snapshot - 05 Jul 2021

Sales grew 45.3% year on year with volume growth of 39.7% in the recent quarter. Operating profit growth was 52.1% due to better gross margin as raw material prices were stable. 
 
Our Opinion: Pidilite has shown a track record of consistent profitable growth for a long period of time making it one of the “Greenest of Green” companies. Wide distribution, high market share, agency-led (carpenters, plumbers) sales, strong brands give us confidence that its competitive advantage will sustain over long term. Most of the growth that the company is expected to deliver over next 5-7 years is already priced in and no amount of positive surprise can generate reasonable returns. We don’t find valuation favourable and hence prefer staying away.

PIDILITE: Not so encouraging nos, why are valuation still stretched? - 04 Aug 2016

Pidilite reported just 5% growth in revenues for Q1FY17 and 9% in volume growth. This implies that company’s products have taken a price cut due to competition. Industry growth rate is slow and players are fighting hard to retain their market share.

Pidilite has reported 20% in EPS growth ~5% higher than our estimate of 15%. However, this was due to lower raw material prices. Primary raw material for Pidilite is Vinyl Acetate Monomer (VAM) which is experience correction in prices since Mid-2014. This benefit is accrued to all players in the industry so we don’t think this profit can be retained over long period. Due to increase in competition and slow industry growth, all companies will look to cut prices and push their products to distributors.

Currently if you calculate the growth rate factored in stock price by doing reverse calculation, it gives you implied growth rate of 27% over next five years. If you go by our bullish estimates of 18% CAGR in EPS and P/E ratio of 30X, investing in Pidilite at current price would give you 4.5%-8.5% CAGR over next five years period. We consider investing in Pidilite at current prices doesn’t make sense.

For those of you who have bought PIDILITE on our recommendation on 23rd August 2013 at Rs. 233/share can considering selling the stock. Our return on this stock is currently ~200% over 3 years or ~28% CAGR. One may want to hold the company over long term can consider selling only 50% at these prices. (720/share)

Like we always say, few stocks perform really good over long term and some are underperformers. Given we are investing in 15-20 stocks, we ought to earn above average returns on entire portfolio. We insist that you invest in all our recommendations. Have a separate portfolio only for MoneyWorks4me recommendations.

Currently, the broader markets seem quite overvalued on basic metrics. Be extremely cautious. Don't rush to buy average or below average companies. Stay away from the euphoria. Keep some cash handy to buy stocks if markets correct. Don't be fully invested at these levels.

A portfolio must be held for the long term, which we define as at least 5-7 years. However, this does not mean every stock will perform in each year. Our performance should be judged on the basis of the overall portfolio over 2-3 years at least, not on the basis of short-term performance of individual stocks. Uninvested cash should be parked in money market/liquid funds/fixed deposits earning 7-8% pre-tax returns.

Key Ratios of Pidilite Inds.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Company Name CMP(₹)
Change ₹(%)
Market Cap
Net Sales (₹ Cr.)
Latest EPS (₹)
Net Profit Margin %
Latest P/E
Latest P/BV
Pidilite Inds. 2,823.3 0.7 (0%) Large Cap 12,383 38.4 14.5 73.5 15.5

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales4,8445,3615,6176,0787,0787,2947,2939,92111,79912,383
Operating Expenses 4,0734,1884,3574,7375,7105,7185,6128,0749,8159,676
Manufacturing Costs3773954214845475956758329121,035
Material Costs2,6692,5852,6402,8883,5873,4033,3775,4446,7595,994
Employee Cost 4975726457128379279811,1121,2461,465
Other Costs 5306366526537407945806858981,181
Operating Profit 7711,1731,2601,3411,3681,5761,6811,8471,9842,707
Operating Profit Margin (%) 15.9%21.9%22.4%22.1%19.3%21.6%23.0%18.6%16.8%21.9%
Other Income 4578112148147149793650140
Interest 16131416263437424851
Depreciation 118100115120133170201240270341
Exceptional Items -5000-18-55-400-72
Profit Before Tax 6781,1411,2481,3591,3421,4701,5221,6141,7232,379
Tax 169334385393413348396407434632
Profit After Tax 5098078639669281,1221,1261,2071,2891,747
PAT Margin (%) 10.5%15.1%15.4%15.9%13.1%15.4%15.4%12.2%10.9%14.1%
Adjusted EPS (₹)10.015.716.819.018.222.022.323.825.134.0
Dividend Payout Ratio (%)29%27%28%32%36%32%38%42%44%47%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 2,2702,6343,4603,5654,1384,4455,5686,3717,1698,397
Share Capital 51515151515151515151
Reserves 2,2192,5833,4093,5144,0884,3945,5176,3207,1188,346
Minority Interest543127175207216240199234210
Debt588098123111169214286163131
Long Term Debt165792512200
Short Term Debt587493115103144202284163131
Trade Payables3323743905445816211,0071,0491,0641,148
Others Liabilities 6495826957928671,0721,7861,5891,8762,190
Total Liabilities 3,3153,7144,7705,1995,9046,5238,8149,49410,50512,076

Fixed Assets

Gross Block1,8081,9282,1662,3402,5373,0575,8346,3016,7387,427
Accumulated Depreciation8307908919981,0891,2501,4161,5971,8241,977
Net Fixed Assets9781,1371,2751,3421,4481,8074,4184,7034,9145,451
CWIP 462158148228242259294225406148
Investments 3707061,4431,2461,5481,1865164598812,235
Inventories6416277218049349291,2341,6951,8171,415
Trade Receivables5867027699381,0561,0891,3211,4311,5351,675
Cash Equivalents 76132100164190703451355327533
Others Assets201252315477485549579626625619
Total Assets 3,3153,7144,7705,1995,9046,5238,8149,49410,50512,076

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 5529077947968451,2801,3929551,5582,724
PBT 6781,1411,2481,3591,3421,4701,5221,6141,7232,379
Adjustment 10882594392146214314325419
Changes in Working Capital -59-1-140-177-1795727-510-79574
Tax Paid -175-314-373-428-409-393-371-462-412-648
Cash Flow From Investing Activity -436-491-87939-513103-1,688-558-899-1,769
Capex -409-166-122-176-254-444-352-374-498-553
Net Investments -38-259-663295-27952370272-407-1,269
Others 11-66-93-801924-2,038-257652
Cash Flow From Financing Activity -165-37141-790-361-849-76-468-656-742
Net Proceeds from Shares 0348124293-29000
Net Proceeds from Borrowing 15-14122-11-18-30
Interest Paid -16-13-14-16-17-25-29-33-48-37
Dividend Paid -162-403-32-293-363-825-1-432-508-560
Others 1276-509-10-23-615-97-146
Net Cash Flow -4945-4546-29533-372-712212
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)24.0932.9228.3327.524.126.1522.520.2219.0422.45
ROCE (%)32.0545.7340.1637.8234.3733.8129.8626.4825.1830.55
Asset Turnover Ratio1.641.621.431.251.281.170.951.081.181.1
PAT to CFO Conversion(x)1.081.120.920.820.911.141.240.791.211.56
Working Capital Days
Receivable Days39414450515460514647
Inventory Days44414145454754545448
Payable Days46505359576488695767

Pidilite Industries Ltd Stock News

Pidilite Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Pidilite Inds. on 26-Mar-2025 09:09 is ₹2,823.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 26-Mar-2025 09:09 the market cap of Pidilite Inds. stood at ₹1,43,571.2.
The latest P/E ratio of Pidilite Inds. as of 26-Mar-2025 09:09 is 72.42.
The latest P/B ratio of Pidilite Inds. as of 26-Mar-2025 09:09 is 15.65.
The 52-week high of Pidilite Inds. is ₹3,414.4 and the 52-week low is ₹2,620.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Pidilite Inds. is ₹11,811 ( Cr.) .

About Pidilite Industries Ltd

PidiliteIndustriesLimited is a consumer centric company committed to quality and innovation. For decades, the company has been pioneering products for small to large applications, at home and industry, which have forged strong bonds with people from all walks of life. Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and specialities chemicals in India.

From adhesives, sealants, waterproofing solutions and construction chemicals to arts & crafts, industrial resins, polymers and more, its product portfolio is as diverse as it is ever-evolving. Today, its brands are trusted household and industrial names, and it is the market leader in adhesives. A robust and growing network makes its products accessible across demographics and geographies.

Business area of the company

Pidilite Industries is a well-known name in the adhesives market.

Brands of the company

  • Fevicol
  • Fevicol MR
  • Dr. Fixit
  • Fevikwik
  • M-Seal
  • Fevistik
  • Fevicryl
  • Hobby Ideas

Industrial Products

  • Textile and Paper Chemicals
  • Industrial Resins
  • Leather Chemicals
  • Industrial Adhesives
  • Footwear Adhesives
  • Organic Pigment Powders and Pigment Preparation
  • Industrial Bonding Solutions
  • Maintenance, Repair and Overhaul Solutions

Awards

  • India Business Leader Awards (IBLA) - Fevicol 60-year commemorative campaign was conferred with the ‘Brand Campaign of the Year’ award at the CNBC-TV18 India Business Leader Awards (IBLA) 2020. It also won the Marketing Campaign of the Year at the ABP Awards and Corporate Image Gold at the Primetime Awards.
  • EFFIES-Fevikwik ‘Phenko Nahi Jodo’ campaign was recognized across platforms, bagging 2 Silver and 1 Bronze medal in EFFIES 2020. It also won the Marketing Campaign of the Year in ABP 2019 and Primetime Gold Award in the Best Television Advertisement category.
  • DOD (Drivers of Digital) Awards Sammie's (Social Samosa) Awards-Fevicryl and its digital agency partner, Schbang won two awards for the Best Digita Campaign for Kalastar, a 360 degree take to help enthusiasts understand fabric colours better. The response was overwhelming, with 16,278 entries into the contest.

Milestones

1959: The Birth of Fevicol

  • Everything great starts small and Pidilite is no exception. The company started with a single factory that manufactured only one product, Fevicol. This white synthetic resin adhesive was primarily launched to make the lives of carpenters and woodworkers easy. Up until then, animal fat, which was clumsy and cumbersome, was the only glue available.

1963: Commissioning of manufacturing plant

  • Barely four years after starting the company, the first modern manufacturing plant was established in Kondivita Village, Mumbai. Today, this building houses the Corporate Head Office.

1990: Establishing Brand Pidilite

  • The name, Pidilite Industries Private Limited, was incorporated, thus taking the first step towards brand recognition.

1993: Pidilite goes public

  • Pidilite was listed on the Bombay Stock Exchange.

1997: Fevicol makes it to the Top 15

  • Fevicol continues to win hearts, and market share, and is ranked amongst the Top 15 Indian brands by FE Brandwagon Year Book 1997.

2000: M-Seal is acquired. A new division is set up.

  • M-seal, a leading brand of epoxy compounds was acquired. This laid the foundation for a new division, the company’s Maintenance Division.

2001: Dr. Fixit - The Waterproofing Expert

  • Pidilite launched Dr. Fixit, an extensive range of Construction Chemicals, thus diversifying its product range. Dr. Fixit was specially developed as a waterproofing solution to be used in new constructions, or in the repair of old ones.

2002: Truly A Winner - Fevicol Wins At Cannes.

  • The famous Fevicol 'Bus ad' not only won the hearts of the Indian people but also the world, going ahead to win the Silver Lion award at Cannes Lions International Festival of Creativity 2002.

2004: Hits the Rs1000 crore turnover mark

  • Just over 4 decades after its launch, Pidilite declared a turnover of Rs.1000 crores. The company had grown 1000 times in just 45 years.

2006: Expanding the global footprint

  • Pidilite USA Inc., acquired businesses and assets of Sargent Art Inc., makers of art materials which had been selling world-class art materials in USA for over 50 years.
  • Pidilite acquired Tristar Colman, now known as Colstar, a market leader in brushes, canvases and colours.
  • Pidilite established its Singapore R&D centre to attract international talent and expand its product innovation strategies.

2016: Another year, another award

  • Pidilite Industries received the 'Most Promising Company of the Year Award' at the CNBC-TV18, 11th Indian Business Leader Awards (IBLA). The award is a tribute and testimony to the diligence of Pidilitians all over.

2020: Pidilite Industries incorporates Joint Venture Company

  • Pidilite Industries has incorporated a Joint Venture Company in the name of ‘Pidilite Grupo Puma Manufacturing’ (PGPML) on January 13, 2020 to carry on the business of manufacturing, processing and distribution of technical mortars and other materials used in construction etc.
  • Nina Percept (NPPL), subsidiary of Pidilite Industries along with Pidilite Speciality Chemicals (PSCB), step-down subsidiary of the company, has incorporated a company in Bangladesh namely ‘Nina Percept (Bangladesh)’.
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