PIDILITIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | PIDILITIND | Market Cap | 1,40,015 Cr. | Current Price | 1,376 ₹ | High / Low | 1,575 ₹ |
| Stock P/E | 60.8 | Book Value | 92.8 ₹ | Dividend Yield | 0.73 % | ROCE | 30.5 % |
| ROE | 23.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,389 ₹ | DMA 200 | 1,445 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 0.35 % | PAT Qtr | 607 Cr. | PAT Prev Qtr | 586 Cr. |
| RSI | 50.1 | MACD | 6.47 | Volume | 13,61,012 | Avg Vol 1Wk | 6,57,096 |
| Low price | 1,259 ₹ | High price | 1,575 ₹ | PEG Ratio | 2.98 | Debt to equity | 0.03 |
| 52w Index | 36.9 % | Qtr Profit Var | 13.5 % | EPS | 22.4 ₹ | Industry PE | 28.9 |
📊 PIDILITIND demonstrates strong fundamentals with ROE at 23.2% and ROCE at 30.5%, reflecting excellent capital efficiency. EPS of 22.4 ₹ supports profitability, and debt-to-equity ratio of 0.03 ensures financial stability. Dividend yield of 0.73% adds modest income support. However, the P/E ratio of 60.8 is significantly higher than the industry average of 28.9, indicating premium valuation. PEG ratio of 2.98 suggests growth is expensive relative to earnings. PAT improved sequentially (586 Cr. → 607 Cr.), highlighting earnings momentum. Technical indicators (RSI 50.1, MACD 6.47) show neutral-to-positive momentum.
💰 Ideal Entry Price Zone: 1,360 ₹ – 1,380 ₹, near DMA 50 (1,389 ₹) and below DMA 200 (1,445 ₹), offering valuation comfort.
📈 Long-Term Holding Guidance: PIDILITIND is highly suitable for long-term holding (5+ years) given strong fundamentals, low debt, and efficiency ratios. Investors may consider partial profit booking near 1,550–1,575 ₹ if valuations stretch without earnings growth.
✅ Positive
- Strong ROE (23.2%) and ROCE (30.5%).
- Debt-to-equity ratio of 0.03 ensures financial stability.
- EPS of 22.4 ₹ supports profitability.
- PAT improved from 586 Cr. to 607 Cr. (+13.5%).
⚠️ Limitation
- High P/E (60.8) compared to industry average (28.9).
- PEG ratio (2.98) signals overvaluation relative to growth.
- Dividend yield modest at 0.73%.
📉 Company Negative News
- FII holdings decreased (-0.26%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.35%), reflecting domestic investor support.
- MACD positive (6.47), indicating bullish technical momentum.
- Stock rebounded from 52-week low (1,259 ₹) to current levels.
🏭 Industry
- Industry P/E at 28.9 is much lower, highlighting PIDILITIND’s premium valuation.
- Chemicals and adhesives sector benefits from strong demand in construction and industrial applications.
🔎 Conclusion
PIDILITIND is a fundamentally strong candidate for long-term investment with robust ROE, ROCE, and low debt. While valuations are stretched, accumulation near 1,360–1,380 ₹ offers margin of safety. Long-term investors can hold for compounding, with profit booking advisable near 1,550–1,575 ₹ if valuations exceed fundamentals.