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Last Updated on: 20 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500331 | NSE: PIDILITIND

Fundamental Analysis of Pidilite Industries Ltd

Basic Stock Data

Last Updated: April 10, 2024, 3:19 am

Market Cap 1,53,964 Cr.
Current Price 3,027
High / Low3,074/2,293
Stock P/E89.9
Book Value 148
Dividend Yield0.37 %
ROCE23.8 %
ROE18.7 %
Face Value 1.00
PEG Ratio10.09

Data Source: screener.in

Competitors of Pidilite Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Neogen Chemicals Ltd 3,847 Cr. 1,4581,859/1,14987.3 2900.21 %10.4 %7.06 % 10.0
Chemcrux Enterprises Ltd 363 Cr. 245359/24243.0 48.80.82 %13.7 %12.2 % 10.0
Lasa Supergenerics Ltd 119 Cr. 23.741.2/20.1 22.60.00 %11.9 %14.0 % 10.0
Panama Petrochem Ltd 2,060 Cr. 340387/27511.1 1682.35 %34.9 %27.1 % 2.00
Clean Science & Technology Ltd 14,223 Cr. 1,3391,622/1,27558.3 1130.37 %29.5 %22.0 % 1.00
Industry Average4,122.40 Cr681.1439.94128.480.75%20.08%16.47%6.60

Quarterly Result

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

Last Updated: May 11, 2024, 1:34 pm

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%

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%

Growth

Compounded Sales Growth
10 Years:11%
5 Years:12%
3 Years:19%
TTM:5%
Compounded Profit Growth
10 Years:15%
5 Years:14%
3 Years:16%
TTM:40%
Stock Price CAGR
10 Years:25%
5 Years:21%
3 Years:16%
1 Year:17%
Return on Equity
10 Years:24%
5 Years:22%
3 Years:21%
Last Year:23%

Last Updated: April 10, 2024, 3:19 am

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

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

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow164.00447.00626.00713.00-79.00-97.00-124.00-112.00-287.00-330.00-415.00-390.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters70.16%70.13%69.99%69.98%69.94%69.94%69.93%69.93%69.94%69.91%69.86%69.84%
FIIs11.88%12.08%11.78%11.66%11.57%11.13%11.34%11.08%10.61%11.34%11.44%11.49%
DIIs7.59%7.15%7.29%7.48%7.30%7.48%7.73%8.12%8.45%7.92%8.01%8.32%
Public10.37%10.64%10.94%10.88%11.19%11.45%10.98%10.85%10.98%10.82%10.70%10.36%
No. of Shareholders2,75,9493,21,5944,10,8214,84,5975,62,8106,20,8755,75,4795,86,0756,18,3275,97,0296,00,1175,77,382

Shareholding Pattern Chart

No. of 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

ROCE Trend

EPS Trend

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

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹2,497.28

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 17.50% compared to the current price ₹3027

Intrinsic Value: ₹2,719.88

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 10.15% compared to the current price ₹3027

Last 5 Year EPS CAGR: 8.91%

*Investments are subject to market risks

Strength and Weakness

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 has a high average Working Capital Days of 40.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 90.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any 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: 17.05%)
      • 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. ✓ ROE%: 17.65% (Industry Average ROE: 14.33%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. 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.
    5. 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.
    6. Stock P/E: 89.9 (Industry average Stock P/E: 52.68)
      • 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.
    7. ✓ 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

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

FAQ

What is the latest fair value of Pidilite Industries Ltd?

The latest fair value of Pidilite Industries Ltd is 2497.28.

What is the Market Cap of Pidilite Industries Ltd?

The Market Cap of Pidilite Industries Ltd is 1,53,964 Cr..

What is the current Stock Price of Pidilite Industries Ltd as on 16 April 2024?

The current stock price of Pidilite Industries Ltd as on 16 April 2024 is 3,027.

What is the High / Low of Pidilite Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Pidilite Industries Ltd stocks is ₹3,074/2,293.

What is the Stock P/E of Pidilite Industries Ltd?

The Stock P/E of Pidilite Industries Ltd is 89.9.

What is the Book Value of Pidilite Industries Ltd?

The Book Value of Pidilite Industries Ltd is 148.

What is the Dividend Yield of Pidilite Industries Ltd?

The Dividend Yield of Pidilite Industries Ltd is 0.37 %.

What is the ROCE of Pidilite Industries Ltd?

The ROCE of Pidilite Industries Ltd is 23.8 %.

What is the ROE of Pidilite Industries Ltd?

The ROE of Pidilite Industries Ltd is 18.7 %.

What is the Face Value of Pidilite Industries Ltd?

The Face Value of Pidilite Industries Ltd is 1.00.

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