⚠ 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: 4.3
| Stock Code | PIDILITIND | Market Cap | 1,44,892 Cr. | Current Price | 1,424 ₹ | High / Low | 1,575 ₹ |
| Stock P/E | 64.9 | Book Value | 92.8 ₹ | Dividend Yield | 0.70 % | ROCE | 30.5 % |
| ROE | 23.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,468 ₹ | DMA 200 | 1,485 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.06 % | PAT Qtr | 586 Cr. | PAT Prev Qtr | 650 Cr. |
| RSI | 38.7 | MACD | -11.6 | Volume | 3,71,612 | Avg Vol 1Wk | 6,40,762 |
| Low price | 1,310 ₹ | High price | 1,575 ₹ | PEG Ratio | 3.18 | Debt to equity | 0.03 |
| 52w Index | 42.9 % | Qtr Profit Var | 8.10 % | EPS | 21.8 ₹ | Industry PE | 26.3 |
📊 Core Financials
- Revenue & Profitability: PAT Qtr at ₹586 Cr vs ₹650 Cr previous quarter, showing slight decline but overall stable growth. EPS at ₹21.8 indicates consistent earnings power.
- Margins: ROE at 23.2% and ROCE at 30.5% reflect strong profitability and efficient capital usage.
- Debt: Debt-to-equity ratio of 0.03 highlights negligible leverage, ensuring financial stability.
- Cash Flow: Strong operating cash flows supported by low debt and healthy margins.
💹 Valuation Indicators
- P/E Ratio: 64.9, significantly higher than industry average of 26.3, suggesting overvaluation.
- P/B Ratio: Current Price ₹1424 vs Book Value ₹92.8 → P/B ~15.3, very expensive relative to assets.
- PEG Ratio: 3.18, indicates premium valuation compared to growth prospects.
- Intrinsic Value: Current price appears stretched; intrinsic value likely lower than CMP.
🏢 Business Model & Competitive Advantage
- Market leader in adhesives and construction chemicals with flagship brand Fevicol.
- Strong distribution network across India and global presence.
- Brand loyalty and diversified product portfolio provide durable competitive advantage.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹1310–₹1375, closer to 52-week low.
- Long-Term Holding: Despite premium valuation, strong fundamentals and brand moat make it a reliable compounder for long-term investors.
✅ Positive
- High ROE and ROCE indicating efficient capital use.
- Debt-free balance sheet ensures financial safety.
- Strong brand equity and market leadership.
⚠️ Limitation
- Valuation is expensive compared to industry peers.
- Quarterly profit decline (₹650 Cr → ₹586 Cr).
- Low dividend yield at 0.70% may not attract income-focused investors.
📉 Company Negative News
- Recent decline in quarterly profits.
- FII holding reduced by 0.07%, indicating cautious foreign sentiment.
📈 Company Positive News
- DII holding increased by 0.06%, showing domestic institutional confidence.
- Strong 52-week performance with 42.9% index gain.
🏭 Industry
- Adhesives and construction chemicals industry growing steadily with infrastructure push.
- Industry P/E at 26.3 highlights sector’s moderate valuation compared to Pidilite’s premium.
🔎 Conclusion
Pidilite Industries remains a fundamentally strong company with robust profitability, negligible debt, and a powerful brand moat. However, valuations are stretched, making it suitable for long-term investors who can accumulate during dips near ₹1310–₹1375. Short-term investors may find limited upside due to high P/E and PEG ratios.
Would you like me to also prepare a comparative HTML table showing Pidilite vs its key industry peers (like Asian Paints, Berger Paints) for a sharper valuation perspective?