PIDILITIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | PIDILITIND | Market Cap | 1,50,815 Cr. | Current Price | 1,480 ₹ | High / Low | 1,575 ₹ |
| Stock P/E | 63.1 | Book Value | 105 ₹ | Dividend Yield | 0.68 % | ROCE | 31.0 % |
| ROE | 23.5 % | Face Value | 1.00 ₹ | DMA 50 | 1,416 ₹ | DMA 200 | 1,445 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 0.35 % | PAT Qtr | 547 Cr. | PAT Prev Qtr | 607 Cr. |
| RSI | 61.5 | MACD | 24.6 | Volume | 5,53,734 | Avg Vol 1Wk | 5,37,323 |
| Low price | 1,259 ₹ | High price | 1,575 ₹ | PEG Ratio | 2.64 | Debt to equity | 0.03 |
| 52w Index | 70.0 % | Qtr Profit Var | 18.7 % | EPS | 23.4 ₹ | Industry PE | 29.0 |
📊 Financial Overview: Pidilite Industries (PIDILITIND) has a market cap of ₹1,50,815 Cr with a current price of ₹1,480. The 52-week range is ₹1,575–1,259. Profitability is strong with ROE at 23.5% and ROCE at 31.0%. Debt-to-equity ratio of 0.03 indicates negligible leverage. PAT stood at ₹547 Cr compared to ₹607 Cr in the previous quarter, showing slight decline. EPS is ₹23.4, reflecting solid earnings capacity.
💰 Valuation Indicators: Stock P/E is 63.1, much higher than the industry average of 29.0, suggesting overvaluation. Book value is ₹105, giving a P/B ratio of ~14.1. PEG ratio of 2.64 indicates valuation is stretched relative to growth. Dividend yield of 0.68% provides modest shareholder returns. Intrinsic value appears lower than current price, limiting margin of safety.
🧴 Business Model & Competitive Advantage: Pidilite Industries is a leader in adhesives, sealants, and construction chemicals, with flagship brands like Fevicol. Its competitive advantage lies in strong brand recognition, wide distribution, and innovation in consumer and industrial products. High margins and low debt highlight overall financial health, though valuation remains a concern.
📈 Entry Zone & Long-Term Guidance: The stock looks expensive at current levels. A better entry zone would be ₹1,400–1,450, closer to support levels. Long-term holding looks favorable given strong fundamentals, brand leadership, and consistent demand, but investors should be cautious of high valuation.
Positive
- 📈 [Strong Returns](ca://s?q=Pidilite_Industries_ROE_ROCE): ROE at 23.5% and ROCE at 31.0% are excellent.
- 🏦 [Low Debt](ca://s?q=Pidilite_Industries_debt_to_equity): Debt-to-equity ratio of 0.03 shows strong balance sheet.
- 🧴 [Brand Leadership](ca://s?q=Pidilite_Industries_business_model): Strong presence in adhesives and construction chemicals.
Limitation
- ⚖️ [High Valuation](ca://s?q=Pidilite_Industries_PE_ratio): P/E of 63.1 compared to industry average of 29.0.
- 📉 [Profit Decline](ca://s?q=Pidilite_Industries_quarterly_profit): PAT fell from ₹607 Cr to ₹547 Cr QoQ.
- 📊 [PEG Ratio](ca://s?q=Pidilite_Industries_PEG_ratio): PEG of 2.64 suggests valuation stretched relative to growth.
Company Negative News
- 📉 [FII Exit](ca://s?q=Pidilite_Industries_FII_holdings): FII holdings decreased by -0.26%.
Company Positive News
- 📈 [DII Support](ca://s?q=Pidilite_Industries_DII_holdings): DII holdings increased by +0.35%.
- 📊 [Technical Strength](ca://s?q=Pidilite_Industries_DMA_levels): Current price above DMA 50 (₹1,416) and DMA 200 (₹1,445) indicates bullish support.
Industry
- 🧴 [Chemicals Sector](ca://s?q=India_chemicals_industry): Industry PE at 29.0, showing moderate valuation compared to Pidilite.
- 📊 [Construction Growth](ca://s?q=India_construction_industry_growth): Rising demand for adhesives and construction chemicals supports sector expansion.
Conclusion
⚖️ Pidilite Industries’ fundamentals are strong with high profitability, low debt, and brand leadership. However, high valuation and profit decline limit attractiveness. Entry is advisable near ₹1,400–1,450 for better risk-reward. Long-term holding looks favorable given strong demand and brand strength, but investors should be cautious of stretched valuation.