PIDILITIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.2

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📊 Fundamental Analysis Report

• Stock Code: PIDILITIND
• Market Cap: ₹1,47,240 Cr
• Current Price: ₹1,446
• 52W High/Low: ₹1,620 / ₹1,310
• EPS: ₹21.8
• Stock P/E: 66.0 vs Industry P/E: 32.0 ❗
• PEG Ratio: 3.23 ❗ (Overvalued vs Growth)
• Book Value: ₹92.8 | P/B Ratio: ~15.6 ❗
• ROE: 23.2% | ROCE: 30.5% 🔥
• Debt to Equity: 0.03 🟢 (Very Low Debt)
• Dividend Yield: 0.69% 💰
• Quarterly PAT: ₹586 Cr (↓9.8%)
• RSI: 34.5 | MACD: -7.25 📉

✅ Positive

• Excellent ROE and ROCE reflect strong profitability and efficient capital use.
• Debt-free structure enhances financial resilience and growth capacity.
• Consistent dividend payout adds value for long-term investors.
• Strong brand equity in adhesives and construction chemicals with dominant market share.

⚠️ Limitation

• High P/E and PEG ratios suggest overvaluation relative to earnings and growth.
• P/B ratio above 15 may deter value-focused investors.
• Technical indicators (RSI & MACD) show bearish momentum; price below DMA 50 & 200.
• FII holding declined slightly, indicating cautious foreign sentiment.

📉 Company Negative News

• Sequential drop in PAT from ₹650 Cr to ₹586 Cr.

📈 Company Positive News

• Strong quarterly revenue growth and margin stability despite input cost pressures.
• Continued expansion in waterproofing, epoxy, and industrial adhesives segments.

🏦 Industry

• PIDILITIND operates in the specialty chemicals and consumer adhesives sector.
• Industry P/E of 32.0 is significantly lower, suggesting PIDILITIND trades at a premium.
• Sector benefits from infrastructure growth, DIY trends, and rising urbanization.

🧭 Conclusion

• Entry Zone: ₹1,370–₹1,420 (near support and RSI oversold)
• Long-Term View: Strong fundamentals and brand leadership make PIDILITIND a reliable long-term hold, though valuation warrants staggered accumulation.