⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PIDILITIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | PIDILITIND | Market Cap | 1,39,594 Cr. | Current Price | 1,372 ₹ | High / Low | 1,575 ₹ |
| Stock P/E | 60.6 | Book Value | 92.8 ₹ | Dividend Yield | 0.73 % | ROCE | 30.5 % |
| ROE | 23.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,445 ₹ | DMA 200 | 1,474 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.06 % | PAT Qtr | 607 Cr. | PAT Prev Qtr | 586 Cr. |
| RSI | 41.3 | MACD | -28.4 | Volume | 5,69,775 | Avg Vol 1Wk | 5,96,519 |
| Low price | 1,325 ₹ | High price | 1,575 ₹ | PEG Ratio | 2.97 | Debt to equity | 0.03 |
| 52w Index | 18.8 % | Qtr Profit Var | 13.5 % | EPS | 22.4 ₹ | Industry PE | 25.7 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT rose to ₹607 Cr. from ₹586 Cr. (+13.5%). ROE (23.2%) and ROCE (30.5%) are strong, reflecting efficient capital use and profitability.
- Debt & Liquidity: Debt-to-equity at 0.03 indicates negligible leverage, ensuring financial stability and healthy cash flows.
- Valuation: P/E of 60.6 is significantly higher than industry average (25.7), suggesting overvaluation. P/B ~14.8 indicates premium pricing relative to book value. PEG ratio (2.97) highlights expensive growth expectations.
- Technical Indicators: RSI at 41.3 indicates weak momentum; MACD at -28.4 signals bearish trend. Current price ₹1,372 is below DMA 50 (₹1,445) and DMA 200 (₹1,474), showing weakness.
🏢 Business Model & Competitive Advantage
- Pidilite Industries operates in adhesives, sealants, construction chemicals, and specialty chemicals, with flagship brands like Fevicol and Dr. Fixit.
- Competitive advantage lies in strong brand equity, wide distribution network, and leadership in consumer and industrial adhesives.
💡 Entry Zone Recommendation
- Entry zone: ₹1,325–₹1,375, near support levels.
- Attractive for long-term investors due to strong fundamentals, but caution advised given high valuation.
📈 Long-Term Holding Guidance
- Suitable for long-term holding due to strong ROE/ROCE and brand leadership.
- Upside potential tied to construction growth, DIY consumer demand, and expansion in specialty chemicals.
✅ Positive
- Strong ROE (23.2%) and ROCE (30.5%).
- Low debt-to-equity ratio (0.03).
- Dividend yield of 0.73% adds investor appeal.
- Quarterly PAT growth (+13.5%).
⚠️ Limitation
- High P/E (60.6) compared to industry average (25.7).
- P/B ratio (~14.8) indicates expensive valuation.
- Stock trading below DMA 50 and DMA 200, showing bearish trend.
📉 Company Negative News
- Bearish technical indicators (MACD negative, RSI weak).
- FII holdings reduced (-0.07%).
📈 Company Positive News
- Quarterly PAT increased from ₹586 Cr. to ₹607 Cr.
- DII holdings increased (+0.06%).
- Strong brand presence with flagship products like Fevicol.
🏭 Industry
- Chemicals & adhesives industry P/E at 25.7, much lower than Pidilite’s valuation.
- Sector growth driven by construction activity, consumer DIY demand, and industrial applications.
🔎 Conclusion
- Pidilite Industries is fundamentally strong with high efficiency and brand leadership but trades at expensive valuations.
- Entry near ₹1,325–₹1,375 is attractive for long-term investors; recommended as a cautious holding with strong sector tailwinds.