Pidilite Industries Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹1,57,885 crore, a PE ratio of 84.0, a debt-to-equity ratio of 0.05 and a return on equity (ROE) of 22.8%. These figures indicate the bank’s financial health and its ability to manage debt while delivering returns.
Content:
- Pidilite Industries Ltd Overview
- Pidilite Industries Financial Results
- Pidilite Industries Financial Analysis
- Pidilite Industries Company Metrics
- Pidilite Industries Stock Performance
- Pidilite Industries Peer Comparison
- Pidilite Industries Limited Shareholding Pattern
- Pidilite Industries History
- How To Invest In Pidilite Industries Ltd Share?
- Pidilite Industries Limited Fundamental Analysis – FAQs
Pidilite Industries Ltd Overview
Pidilite Industries Ltd., founded in 1969, is a leading manufacturer of adhesives, construction chemicals and speciality products. Known for brands like Fevicol, it has expanded globally through strategic acquisitions, joint ventures and innovations in various sectors.
The company has a market capitalization of ₹1,57,885 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 5.33% below its 52-week high and 35.4% above its 52-week low.
Pidilite Industries Financial Results
Pidilite Industries Ltd’s financial results show FY24 sales at ₹12,383 crore, up from ₹9,921 crore in FY22. Operating profit increased to ₹2,707 crore in FY24 from ₹1,847 crore in FY22, reflecting robust growth.
- Revenue Trend: Sales grew to ₹12,383 crore in FY24 from ₹9,921 crore in FY22. FY23 sales were ₹11,799 crore, showing a steady upward trend over the three years.
- Equity and Liabilities: Equity capital stood at ₹51 Crores in FY24, with reserves increasing to ₹8,287 Crores. Total liabilities increased to ₹11,371 Crores from ₹9,680 Crores in FY23, indicating a growing financial base.
- Profitability: Operating profit surged to ₹2,707 crore in FY24 from ₹1,847 crore in FY22, with FY23 at ₹1,984 crore. Operating Profit Margin (OPM) improved to 22% in FY24 from 19% in FY22.
- Earnings Per Share (EPS): EPS increased to ₹34.01 in FY24 from ₹23.76 in FY22. FY23 EPS was ₹25.05, reflecting strong earnings growth and improved shareholder returns.
- Return on Net Worth (RoNW): The Return on Net Worth (RoNW) slightly decreased to 22.8% in FY24 from 23% in FY23, suggesting a modest decline in returns on shareholders’ equity, but overall profitability remained stable.
- Financial Position: Interest expenses rose to ₹51.19 crore in FY24 from ₹42.08 crore in FY22, while depreciation increased to ₹340.66 crore from ₹239.61 crore. FY23 figures were ₹47.64 crore for interest and ₹269.74 crore for depreciation.
Pidilite Industries Financial Analysis
| FY24 | FY23 | FY22 | |
| Sales | 12,383 | 11,799 | 9,921 |
| Expenses | 9,676 | 9,815 | 8,074 |
| Operating Profit | 2,707 | 1,984 | 1,847 |
| OPM % | 22 | 17 | 19 |
| Other Income | 67.98 | 49.61 | 36.3 |
| EBITDA | 2,847 | 2,034 | 1,884 |
| Interest | 51.19 | 47.64 | 42.08 |
| Depreciation | 340.66 | 269.74 | 239.61 |
| Profit Before Tax | 2,383 | 1,717 | 1,602 |
| Tax % | 26.51 | 25.3 | 25.41 |
| Net Profit | 1,747 | 1,289 | 1,207 |
| EPS | 34.01 | 25.05 | 23.76 |
| Dividend Payout % | 47.04 | 43.91 | 42.09 |
All values in ₹ Crores.
Pidilite Industries Company Metrics
With a market cap of ₹1,57,885 crore, the company’s current price is ₹3,104. It has a high/low of ₹3,279/₹2,293 and a stock P/E of 84.0. ROE stands at 22.8%, and dividend yield at 0.52%. The debt is ₹382 crore, with a 1-year return of 22.0%.
- Market Cap: Pidilite Industries has a market cap of ₹1,57,885 crore. This large market capitalization indicates a strong market presence and investor confidence, with significant growth potential compared to smaller peers.
- Book Value: The book value is ₹165 per share, reflecting the company’s net asset value.
- Face Value: The face value of Pidilite Industries’ stock is ₹1.00. This nominal value is the base price at which shares are issued, influencing stock trading and financial reporting.
- Turnover: The asset turnover ratio is 1.10, indicating efficient use of assets to generate revenue.
- PE Ratio: The stock P/E ratio is 84.0, suggesting high investor expectations and strong growth potential. A high P/E ratio often indicates confidence in future earnings and company performance.
- Debt: Pidilite has a low debt level of ₹382 crore, with a debt-to-equity ratio of 0.05. This low debt burden reflects a conservative approach to financing and financial stability.
- ROE: Return on equity (ROE) stands at 22.8%, demonstrating efficient use of shareholder equity to generate profits.
- EBITDA Margin: The EBITDA margin is 22.5%, highlighting profitability before interest, tax, depreciation, and amortization.
- Dividend Yield: The dividend yield is 0.52%, showing the return to shareholders in the form of dividends.
Pidilite Industries Stock Performance
Over 5 years, the return on investment is 18%. For 3 years, it’s 11%, and for 1 year, it’s 22%, reflecting varying performance and returns over different time frames.
| Period | Return on Investment (%) |
| 5 Years: | 18% |
| 3 Years: | 11% |
| 1 Year: | 22% |
Examples:
1. For 5 years, investing ₹100,000 yields ₹118,000 in return.
2. A 3-year investment of ₹100,000 returns ₹111,000, showing moderate growth.
3. A ₹100 investment over 1 year returns ₹122,000, indicating strong performance.
Pidilite Industries Peer Comparison
Pidilite Industries, with a market cap of ₹1,57,885 crore, compares against competitors like SRF, Linde India, Deepak Nitrite, Gujarat Fluorochemicals, Godrej Industries, and BASF India. Competitors vary in market cap, returns, and growth potential.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | Pidilite Inds. | 3104.25 | 157885.02 | 6.14 | 2.88 | 21.97 |
| 2 | SRF | 2516.85 | 74605.72 | 3.86 | 8.35 | 7.33 |
| 3 | Linde India | 7310.15 | 62340.95 | 2.14 | -19.5 | 23.28 |
| 4 | Deepak Nitrite | 2981.3 | 40662.94 | 1.54 | 24.89 | 48.17 |
| 5 | Gujarat Fluoroch | 3226.8 | 35446.44 | -5.46 | -0.99 | 12.21 |
| 6 | Godrej Industrie | 937.1 | 31556.89 | -1.77 | 14.36 | 77.39 |
| 7 | BASF India | 6809.95 | 29480.28 | 0.56 | 46.91 | 160.72 |
Pidilite Industries Limited Shareholding Pattern
The shareholding Pattern of Pidilite Industries shows stable promoter ownership around 69.75% to 69.86% from September 2023 to June 2024. FIIs hold between 11.59% and 11.31%, DIIs range from 8.98% to 8.02%, and retail & others hold 9.7% to 10.69%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 23 | |
| Promoters | 69.75 | 69.77 | 69.84 | 69.86 |
| FII | 11.59 | 11.31 | 11.49 | 11.44 |
| DII | 8.98 | 8.94 | 8.33 | 8.02 |
| Retail & others | 9.7 | 9.99 | 10.35 | 10.69 |
All values in%
Pidilite Industries History
Pidilite Industries, established in 1969 as Parekh Dychem Industries Pvt. Ltd., began by acquiring a partnership firm. The company initially focused on synthetic resin and construction chemicals projects in Maharashtra. Throughout the 1980s, Pidilite expanded through mergers with Kondivita Pvt. Ltd., Pidilite Industries Ltd., and Triveni Chemicals Ltd., consolidating its position and enlarging its product portfolio in adhesives and chemicals.
The 1990s saw significant expansions, including new projects in pigments and adhesives. Pidilite focused on re-engineering as a brand-centric company and acquired several new brands, enhancing its market reach. In the 2000s, Pidilite acquired Mahindra Engineering’s adhesive business and entered new markets like snacks.
Strategic joint ventures and acquisitions furthered its growth, including expansions into Ethiopia and various industries. Recent years have seen continued growth with new product launches, digital campaigns, and strategic amalgamations, including Cipy Polyurethanes. Pidilite’s innovation in adhesives and coatings continues to drive its market presence.
How To Invest In Pidilite Industries Ltd Share?
Investing in Pidilite Industries shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Pidilite Industries shares and place your buy order.
Pidilite Industries Limited Fundamental Analysis – FAQs
Pidilite Industries Ltd’s fundamental analysis reveals a market cap of ₹1,57,885 crore, a PE ratio of 84.0, a debt-to-equity ratio of 0.05 and a 22.8% return on equity, reflecting strong financial health and effective debt management.
The market capitalization of JSW Infrastructure Ltd is ₹1,57,885 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Pidilite Industries Limited is a leading Indian manufacturer of adhesives, sealants and construction chemicals. Known for brands like Fevicol, it offers a range of products for industrial and consumer applications, with a significant market presence and global reach.
Pidilite Industries is primarily owned by the Parekh family, with Balvantray Kalyanji Parekh as the founder. The family holds a significant stake in the company, maintaining control and influence over its operations and strategic direction.
The main shareholders of Pidilite Industries include the Parekh family, which holds a substantial portion of shares. Institutional investors such as foreign institutional investors (FIIs) and domestic institutional investors (DIIs) also hold significant stakes, along with retail investors.
Pidilite Industries operates in the chemicals industry, specializing in adhesives, sealants, and construction chemicals. Its products cater to both industrial and consumer markets, with a focus on innovative solutions for bonding, sealing, and surface treatment applications.
Investors can buy Pidilite Industries shares through stock exchanges by opening a trading account with a broker or via online trading platforms, participating in market transactions during trading hours.
Determining if Pidilite Industries is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 84.0, Pidilite Industries might be fairly valued, reflecting market expectations and moderate growth potential.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
