PIDILITIND - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.8

📊 Fundamental & Valuation Analysis

Metric Value Interpretation

Market Cap ₹1,47,181 Cr Large-cap, industry leader

P/E Ratio 70.3 Highly overvalued vs industry PE of 34.4

PEG Ratio 4.81

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Significantly overvalued for growth

ROE 22.57%

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Excellent shareholder return

ROCE 24.92%

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Strong capital efficiency

Dividend Yield 0.69%

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Low but consistent

Debt to Equity 0.05

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Very low leverage, strong balance sheet

📈 Price Trends & Technicals

Indicator Value Signal

Current Price ₹2,859

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Near support zone

52W High/Low ₹3,415 / ₹2,622

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16% below high

DMA 50 / 200 ₹3,014 / ₹2,972

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Trading below both — bearish

RSI 34.08

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Near oversold zone

MACD -37.2 Bearish momentum

Volume Below average Weak participation

🎯 Ideal Entry Price Zone

Given the high valuation and weak technicals, the ideal entry zone is ₹2,620–₹2,750, near the 52-week low and key support levels. This offers a better margin of safety for long-term investors.

🧭 Holding or Exit Strategy

If you already hold Pidilite Industries

Holding Period: Minimum 5+ years to benefit from brand strength and compounding returns.

Exit Strategy

Partial exit near ₹3,300–₹3,400 (resistance zone)

Hold if ROE >20% and PEG <3

Exit fully if PEG remains >5 and earnings growth slows

✅ Long-Term Investment Verdict

Pros

Strong ROE/ROCE and debt-free

Market leader in adhesives and construction chemicals

Consistent dividend history and brand moat

Cons

Extremely high PEG ratio (4.81)

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Rich valuation (P/E > 70)

Weak technical momentum and recent price correction

Conclusion: Pidilite Industries is a high-quality but richly valued long-term candidate. Ideal for patient investors who prioritize brand strength and stability over short-term returns. Accumulate only on dips near support.

Would you like a peer comparison with Asian Paints, Berger Paints, or Kansai Nerolac?

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stockanalysis.com

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trendlyne.com

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bing.com

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