Why is Pidilite Industries Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.37%
- Healthy long term growth as Net Sales has grown by an annual rate of 14.89% and Operating profit at 16.12%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
Flat results in Mar 26
3
Stock is technically in a Mildly Bullish range
- The technical trend has improved from Mildly Bearish on 10-Jun-26 and has generated 4.39% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV
4
With ROE of 22.7, it has a Very Expensive valuation with a 14.8 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 5.97%, its profits have risen by 17.4% ; the PEG ratio of the company is 3.8
5
High Institutional Holdings at 21.39%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
How much should you hold?
- Overall Portfolio exposure to Pidilite Inds. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Pidilite Inds. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Pidilite Inds.
5.88%
0.28
21.54%
Sensex
-5.12%
-0.39
13.26%
Quality key factors
Factor
Value
Sales Growth (5y)
14.89%
EBIT Growth (5y)
16.12%
EBIT to Interest (avg)
46.15
Debt to EBITDA (avg)
0.20
Net Debt to Equity (avg)
-0.35
Sales to Capital Employed (avg)
1.43
Tax Ratio
25.58%
Dividend Payout Ratio
48.99%
Pledged Shares
0
Institutional Holding
21.39%
ROCE (avg)
33.82%
ROE (avg)
20.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
65
Industry P/E
46
Price to Book Value
14.83
EV to EBIT
50.19
EV to EBITDA
44.56
EV to Capital Employed
22.30
EV to Sales
10.74
PEG Ratio
3.77
Dividend Yield
0.95%
ROCE (Latest)
44.44%
ROE (Latest)
22.70%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
5What is working for the Company
PBT LESS OI(Q)
At Rs 719.85 cr has Grown at 38.23%
PAT(Q)
At Rs 585.27 cr has Grown at 32.8%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Pidilite Inds.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 719.85 cr has Grown at 38.23%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 585.27 cr has Grown at 32.8%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)