PIDILITIND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🧪 Fundamental Stock Analysis: Pidilite Industries Ltd (PIDILITIND) Rating: 4.2

🧾 Financials & Quality Metrics

ROE: 23.0% and ROCE: 29.8% highlight outstanding capital efficiency — hallmark traits of a market leader.

EPS: ₹40.8 combined with Qtr Profit Variation of 25.9% — reflects strong earning power and growth momentum.

Debt-to-Equity: 0.05 — minimal leverage, ensuring agility and financial resilience.

PAT dropped from ₹552 Cr to ₹441 Cr — a seasonal or margin-related dip; not yet a red flag.

💰 Valuation Indicators & Technical Health

Metric Value Interpretation

P/E Ratio 70.3 Rich valuation relative to industry PE of 34.4

P/B Ratio ~15.07 Indicates high premium for quality and brand trust

PEG Ratio 3.53 Suggests overvaluation relative to earnings growth

RSI 34.1 Near oversold — technical bounce may be due

MACD -37.2 Bearish signal; momentum currently negative

Price vs DMA ₹2,893 vs DMA50/200: ₹2,989 / ₹2,973 Below key averages; short-term weakness apparent

Volume Drop: Below average — points to low trading interest or cautious sentiment.

FII Up / DII Down: Mixed signals — foreign investors showing confidence, domestic slightly trimming.

🧠 Business Model & Strategic Advantage

Core Focus: Adhesives, sealants, and construction chemicals — entrenched in consumer and industrial segments.

Brand Power: Flagship products like Fevicol enjoy near-monopoly status in their categories.

Moat

Distribution dominance across India

Sticky consumer demand (pun intended)

Innovation-led growth backed by R&D and acquisitions

📌 Investment Strategy

Suggested Entry Zone: ₹2,750–₹2,850, especially if RSI drops closer to 30 or price nears 52-week low (~₹2,620).

Long-Term Outlook

Top-tier compounder with predictable earnings and low volatility.

Ideal for core portfolio holdings — especially for investors with a long horizon.

Monitor for valuation cooling and better re-entry points if broader markets correct.

Would you like to compare PIDILITIND with another FMCG or specialty chemical player like Asian Paints, Berger Paints, or Deepak Nitrite? I can map differences across growth, margin trends, and valuation premiums to help sharpen your view.

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