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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500331 | NSE: PIDILITIND

Fundamental Analysis of Pidilite Industries Ltd

About the Company - Pidilite Industries Ltd

Pidilite Industries Ltd. is a Public Limited Listed company incorporated on 28/07/1969 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24100MH1969PLC014336 and registration number is 014336. Currently Company is involved in the business activities of Manufacture of gelatine and its derivatives, resinoids, glues, prepared adhesives, including rubber-based glues and adhesives. Company’s Total Operating Revenue is Rs. 8340.17 Cr. and Equity Capital is Rs. 50.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - OthersRegent Chambers, 7th Floor, Mumbai Maharashtra 400021investor.relations@pidilite.co.in
http://www.pidilite.com
Management
NamePosition Held
Mr. M B ParekhExecutive Chairman
Mr. A B ParekhExecutive Vice Chairman
Mr. A N ParekhExecutive Vice Chairman
Mr. Bharat PuriManaging Director
Mr. Sudhanshu VatsDeputy Managing Director
Mr. Sandeep BatraDirector - Finance & CFO
Mr. Joseph VargheseDirector - Operations
Mr. N K ParekhNon Executive Director
Mr. B S MehtaIndependent Director
Mr. Meher PudumjeeIndependent Director
Mr. Rajeev VasudevaIndependent Director
Mr. Sanjeev AgaIndependent Director
Mr. Uday KhannaIndependent Director
Mrs. Meera ShankarIndependent Director
Mr. Vinod DasariIndependent Director
Mr. Piyush PandeyIndependent Director

Pidilite Industries Ltd. Share Price Update

Share PriceValue
Today₹2,713.05
Previous Day₹2,726.00

Basic Stock Data of Pidilite Industries Ltd

Market Cap 1,38,393 Cr.
Current Price 2,721
High / Low2,805/2,250
Stock P/E80.8
Book Value 148
Dividend Yield0.41 %
ROCE23.8 %
ROE18.7 %
Face Value 1.00

Data Source: screener.in

Competitors of Pidilite Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Savita Oil Technologies Ltd 3,022 Cr. 437449/23214.5 2210.93 %24.2 %16.1 % 2.00
Aarti Surfactants Ltd 518 Cr. 683854/41724.3 2090.00 %10.6 %8.36 % 10.0
Rossari Biotech Ltd 4,221 Cr. 764904/53633.6 1770.07 %18.4 %12.4 % 2.00
Neogen Chemicals Ltd 3,473 Cr. 1,3161,859/1,23285.3 1880.23 %13.2 %10.9 % 10.0
Chembond Chemicals Ltd 693 Cr. 515640/23014.5 2550.59 %10.9 %7.89 % 5.00
Industry Average244.2 Cr48034.442100.36%15.46%11.13%5.8

Vadivarhe Speciality Chemicals Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,2992,2361,9372,6262,8512,5073,1013,0112,9982,6893,2753,0763,130
Expenses1,6581,7751,5892,0772,3022,1062,5722,5112,5022,2322,5692,3982,388
Operating Profit641461348550549401529500496458706678742
OPM %28%21%18%21%19%16%17%17%17%17%22%22%24%
Other Income22158159161414723233237
Interest12710121199121512121313
Depreciation49575760606261646976737579
Profit before tax601411290491487346473439419393644622687
Tax %26%25%25%24%26%26%24%23%27%27%26%26%26%
Net Profit446307218376359254358338308286474459511
EPS in Rs8.696.034.337.377.055.006.966.545.985.579.218.8510.04

Pidilite Industries Ltd Quarterly Chart

Pidilite Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,1273,6784,2834,8445,3615,6176,0787,0787,2947,2939,92111,79912,170
Expenses2,6413,1203,6114,0734,1884,3554,7375,7075,7185,6068,0659,8139,586
Operating Profit4855586727711,1731,2621,3411,3711,5761,6861,8561,9862,585
OPM %16%15%16%16%22%22%22%19%22%23%19%17%21%
Other Income4210738408111515313097743955115
Interest31161616131416263437424850
Depreciation646981118100115120133170201240270304
Profit before tax4335816126781,1411,2481,3591,3421,4701,5221,6141,7232,346
Tax %25%27%27%25%29%31%29%31%24%26%25%25%
Net Profit3254244505148078639669281,1221,1261,2071,2891,729
EPS in Rs6.398.278.7710.0015.6616.7718.9518.2121.9722.2623.7625.0533.67
Dividend Payout %30%31%31%29%26%28%32%36%32%38%42%44%

Pidilite Industries Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)30.46%6.13%14.22%57.00%6.94%11.94%-3.93%20.91%0.36%7.19%6.79%
Change in YoY Net Profit Growth (%)0.00%-24.33%8.09%42.78%-50.06%5.00%-15.87%24.84%-20.55%6.84%-0.40%

Pidilite Industries Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:14%
3 Years:17%
TTM:5%
Compounded Profit Growth
10 Years:12%
5 Years:6%
3 Years:3%
TTM:38%
Stock Price CAGR
10 Years:25%
5 Years:20%
3 Years:16%
1 Year:18%
Return on Equity
10 Years:24%
5 Years:22%
3 Years:20%
Last Year:19%

Pidilite Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital51515151515151515151515151
Reserves1,2701,6001,9012,2192,5873,4203,5234,0974,4055,5426,3537,1617,477
Borrowings32111146588098125113288331416391416
Other Liabilities7228539309869961,2021,5001,6431,7792,8902,6752,9023,275
Total Liabilities2,3642,6162,9283,3153,7144,7705,1995,9046,5238,8149,49410,50511,219
Fixed Assets6186467299781,1371,2751,3421,4481,8074,4184,7034,9145,224
CWIP394428458462158148228242259294225406271
Investments982942603707061,4431,2461,5481,1865164598811,355
Other Assets1,2551,2481,4811,5051,7131,9042,3832,6663,2703,5864,1074,3044,369
Total Assets2,3642,6162,9283,3153,7144,7705,1995,9046,5238,8149,49410,50511,219

Pidilite Industries Ltd Reserves and Borrowings Chart

Pidilite Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3674723945529077947968451,2801,3929551,558
Cash from Investing Activity -239-144-99-436-491-87939-513103-1,688-558-899
Cash from Financing Activity -135-339-242-165-37141-790-361-849-76-468-656
Net Cash Flow-7-1254-4945-4546-29533-372-712

Pidilite Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days464345444850565454665347
Inventory Days95959388891001029510013311498
Days Payable4345544553546959671097057
Cash Conversion Cycle989284868496899088919688
Working Capital Days142333314246565445355447
ROCE %29%34%33%32%45%39%36%33%33%28%25%24%

Pidilite Industries Ltd Financial Efficiency Indicators Chart

Pidilite Industries Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters70.19%70.16%70.13%69.99%69.98%69.94%69.94%69.93%69.93%69.94%69.91%69.86%
FIIs11.39%11.88%12.08%11.78%11.66%11.57%11.13%11.34%11.08%10.61%11.34%11.44%
DIIs8.24%7.59%7.15%7.29%7.48%7.30%7.48%7.73%8.12%8.45%7.92%8.01%
Public10.18%10.37%10.64%10.94%10.88%11.19%11.45%10.98%10.85%10.98%10.82%10.70%
No. of Shareholders2,49,1722,75,9493,21,5944,10,8214,84,5975,62,8106,20,8755,75,4795,86,0756,18,3275,97,0296,00,117

Pidilite Industries Ltd Shareholding Pattern Chart

No. of Pidilite Industries Ltd Shareholders

Pidilite Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Axis ELSS Tax Saver Fund51083603.861293.97
Axis Focused 25 Fund35238306.44892.6
Axis Bluechip Fund18698851.45473.65
UTI Flexi Cap Fund9927281251.46
Kotak Equity Arbitrage Fund - Regular Plan7570000.53191.75
ICICI Prudential Balanced Advantage Fund4000000.19101.32
SBI Arbitrage Opportunities Fund3970000.38100.56
Nippon India ETF Nifty Next 50 Junior BeES3861202.3297.81
Tata Arbitrage Fund3775000.9995.62
ICICI Prudential Nifty Next 50 Index Fund3558592.3290.14

Pidilite Industries Ltd ROCE Trend

Pidilite Industries Ltd EPS Trend

Pidilite Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)25.0523.7622.2621.9818.21
Diluted EPS (Rs.)25.0323.7622.2421.9718.20
Cash EPS (Rs.)30.5328.2226.0325.3720.82
Book Value[Excl.RevalReserv]/Share (Rs.)146.49129.90114.7891.9485.73
Book Value[Incl.RevalReserv]/Share (Rs.)146.49129.90114.7891.9485.73
Revenue From Operations / Share (Rs.)232.13195.18143.50143.56139.33
PBDIT / Share (Rs.)40.0237.0634.6333.9629.82
PBIT / Share (Rs.)34.7132.3430.6830.6127.21
PBT / Share (Rs.)33.7731.5129.8828.8726.34
Net Profit / Share (Rs.)25.2323.5122.0822.0218.20
NP After MI And SOA / Share (Rs.)25.0523.7622.2621.9718.21
PBDIT Margin (%)17.2318.9824.1323.6521.40
PBIT Margin (%)14.9516.5721.3821.3219.52
PBT Margin (%)14.5416.1420.8220.1018.90
Net Profit Margin (%)10.8612.0415.3815.3413.06
NP After MI And SOA Margin (%)10.7912.1715.5115.3013.06
Return on Networth / Equity (%)17.6518.8520.2225.0522.29
Return on Capital Employeed (%)21.7422.8624.3831.6129.95
Return On Assets (%)12.0912.6912.8117.0815.63
Long Term Debt / Equity (X)0.000.000.000.010.00
Total Debt / Equity (X)0.020.040.030.030.02
Asset Turnover Ratio (%)1.100.960.871.081.15
Current Ratio (X)1.891.731.442.332.75
Quick Ratio (X)1.140.990.931.752.04
Inventory Turnover Ratio (X)3.283.202.593.033.59
Dividend Payout Ratio (NP) (%)39.9235.760.0061.4232.94
Dividend Payout Ratio (CP) (%)32.9429.840.0053.3128.80
Earning Retention Ratio (%)60.0864.24100.0038.5867.06
Cash Earning Retention Ratio (%)67.0670.16100.0046.6971.20
Interest Coverage Ratio (X)42.6944.7647.2751.3558.11
Interest Coverage Ratio (Post Tax) (X)27.9129.4031.2435.9537.16
Enterprise Value (Cr.)119713.90124936.5191984.1468612.9163239.15
EV / Net Operating Revenue (X)10.1512.5912.619.418.93
EV / EBITDA (X)58.8666.3352.2639.7741.75
MarketCap / Net Operating Revenue (X)10.1412.5812.619.458.92
Retention Ratios (%)60.0764.2399.9938.5767.05
Price / BV (X)16.5919.4916.4515.4715.21
Price / Net Operating Revenue (X)10.1412.5812.619.458.92
EarningsYield0.010.010.010.010.01

Pidilite Industries Ltd Profitability Ratios (%)

Pidilite Industries Ltd Liquidity Ratios

Pidilite Industries Ltd Liquidity Ratios (%)

Pidilite Industries Ltd Interest Coverage Ratios (X)

Pidilite Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Pidilite Industries Ltd

Fair Value: ₹2245.39

The stock is overvalued by 17.48% compared to the current price ₹2721

*Investments are subject to market risks

Strength and Weakness of Pidilite Industries Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 32.58%, which is a positive sign.
  2. The company has higher reserves (3,965.77 cr) compared to borrowings (214.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (6.38 cr) and profit (178.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 31.11 and average Dividend Yield of 18.75%.
  2. The stock has a high average Working Capital Days of 40.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 90.17, which may not be favorable.

Should I Buy Pidilite Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Pidilite Industries Ltd:
    1. Net Profit Margin: 10.86%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.74% (Industry Average ROCE: 13.2%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 27.91
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.14
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 80.8 (Industry average Stock P/E: 17.92)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Pidilite Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE