BSE:500331

Stock Analysis Report

Pidilite Industries

Executive Summary

Pidilite Industries Limited, together with its subsidiaries, manufactures and sells consumer and specialty chemicals in India and internationally.

Rewards

Earnings are forecast to grow 15.45% per year

Earnings grew by 12.3% over the past year

Risk Analysis

No risks detected for 500331 from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Pidilite Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500331 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

500331

-1.2%

IN Chemicals

-2.5%

IN Market


1 Year Return

15.7%

500331

8.4%

IN Chemicals

5.0%

IN Market

Return vs Industry: 500331 exceeded the Indian Chemicals industry which returned 8.4% over the past year.

Return vs Market: 500331 exceeded the Indian Market which returned 5% over the past year.


Shareholder returns

500331IndustryMarket
7 Day0.8%-1.2%-2.5%
30 Day0.8%-3.1%-1.3%
90 Day-3.0%4.8%5.7%
1 Year16.3%15.7%11.0%8.4%7.0%5.0%
3 Year120.7%117.2%50.7%44.6%30.3%23.4%
5 Year197.9%189.6%113.7%97.8%42.1%29.3%

Price Volatility Vs. Market

How volatile is Pidilite Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pidilite Industries undervalued compared to its fair value and its price relative to the market?

63.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500331 (₹1330.8) is trading above our estimate of fair value (₹318.82)

Significantly Below Fair Value: 500331 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500331 is poor value based on its PE Ratio (63.1x) compared to the Chemicals industry average (10.3x).

PE vs Market: 500331 is poor value based on its PE Ratio (63.1x) compared to the Indian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: 500331 is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: 500331 is overvalued based on its PB Ratio (15.5x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Pidilite Industries forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500331's forecast earnings growth (15.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 500331's earnings (15.5% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: 500331's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500331's revenue (12.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 500331's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500331's Return on Equity is forecast to be high in 3 years time (26.6%)


Next Steps

Past Performance

How has Pidilite Industries performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500331 has high quality earnings.

Growing Profit Margin: 500331's current net profit margins (14.7%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: 500331's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: 500331's earnings growth over the past year (12.3%) is below its 5-year average (13.3% per year).

Earnings vs Industry: 500331 earnings growth over the past year (12.3%) exceeded the Chemicals industry 10.4%.


Return on Equity

High ROE: 500331's Return on Equity (23.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pidilite Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 500331's short term assets (₹38.1B) exceed its short term liabilities (₹14.8B).

Long Term Liabilities: 500331's short term assets (₹38.1B) exceed its long term liabilities (₹3.3B).


Debt to Equity History and Analysis

Debt Level: 500331's debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: 500331's debt to equity ratio has reduced from 7.3% to 2.8% over the past 5 years.

Debt Coverage: 500331's debt is well covered by operating cash flow (835.1%).

Interest Coverage: 500331 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500331 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500331's debt is covered by short term assets (assets are 29.3x debt).


Next Steps

Dividend

What is Pidilite Industries's current dividend yield, its reliability and sustainability?

0.49%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: 500331's dividend (0.49%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500331's dividend (0.49%) is low compared to the top 25% of dividend payers in the Indian market (2.53%).


Stability and Growth of Payments

Stable Dividend: 500331's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500331's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.8%), 500331's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500331's dividends in 3 years are forecast to be well covered by earnings (36.4% payout ratio).


Next Steps

Management

What is the CEO of Pidilite Industries's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Bharat Puri (58yo)

4.7yrs

Tenure

₹248,200,000

Compensation

Mr. Bharat Puri has been the Managing Director of Pidilite Industries Limited since April 10, 2015. Mr. Puri has been an Independent Director of Tata Global Beverages Limited since May 07, 2019. He served  ...


CEO Compensation Analysis

Compensation vs Market: Bharat's total compensation ($USD3.50M) is above average for companies of similar size in the Indian market ($USD1.29M).

Compensation vs Earnings: Bharat's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.9yrs

Average Tenure

56yo

Average Age

Experienced Management: 500331's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

5.7yrs

Average Tenure

70yo

Average Age

Experienced Board: 500331's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: 500331 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹2,645,21602 Dec 19
Prabhakar Jain
EntityIndividual
Shares2,000
Max Price₹1,322.61
Sell₹290,856,07926 Sep 19
Sushilkumar Parekh
EntityIndividual
Shares200,000
Max Price₹1,454.28
Sell₹3,102,84828 May 19
Winnie Saldanha
EntityIndividual
Shares2,500
Max Price₹1,241.14
Buy₹2,493,00001 Apr 19
Manish Modi
EntityIndividual
Shares2,000
Max Price₹1,246.50
Buy₹1,188,45025 Mar 19
Manish Modi
EntityIndividual
Shares1,000
Max Price₹1,188.45
Buy₹824,46720 Mar 19
Manish Modi
EntityIndividual
Shares700
Max Price₹1,177.81
Sell₹21,176,23507 Mar 19
Jimeet Sanghavi
EntityIndividual
Shares18,300
Max Price₹1,157.17

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bharat Puri (58yo)

    MD & Executive Director

    • Tenure: 4.7yrs
    • Compensation: ₹248.20m
  • Madhukar Parekh (73yo)

    Executive Chairman

    • Tenure: 4.7yrs
    • Compensation: ₹37.30m
  • Priykant Patel

    President

    • Tenure: 0yrs
  • Ajay Parekh

    Whole-Time Director

    • Tenure: 34.9yrs
    • Compensation: ₹64.70m
  • Apurva Parekh

    Whole-Time Director

    • Tenure: 14.4yrs
    • Compensation: ₹54.50m
  • Vivek Sharma (54yo)

    Chief Marketing Officer

    • Tenure: 0yrs
  • Rahul Sinha

    President of Human Resources

    • Tenure: 0yrs
  • Mayur Danait (45yo)

    Chief Information Officer

    • Tenure: 0.9yrs
  • Ramnarayan Mohanty

    President of Technology

    • Tenure: 0yrs
  • Puneet Bansal

    Senior VP of Legal & Company Secretary

    • Tenure: 0.9yrs
    • Compensation: ₹4.47m

Board Members

  • Bansi Mehta (84yo)

    Independent Non Executive Director

    • Tenure: 0yrs
    • Compensation: ₹2.54m
  • Narendrakumar Parekh (81yo)

    Non-Executive Vice Chairman

    • Tenure: 4.7yrs
    • Compensation: ₹2.84m
  • Bharat Puri (58yo)

    MD & Executive Director

    • Tenure: 4.7yrs
    • Compensation: ₹248.20m
  • Madhukar Parekh (73yo)

    Executive Chairman

    • Tenure: 4.7yrs
    • Compensation: ₹37.30m
  • Sanjeev Aga (67yo)

    Independent Non Executive Director

    • Tenure: 8.4yrs
    • Compensation: ₹2.46m
  • Ajay Parekh

    Whole-Time Director

    • Tenure: 34.9yrs
    • Compensation: ₹64.70m
  • Apurva Parekh

    Whole-Time Director

    • Tenure: 14.4yrs
    • Compensation: ₹54.50m
  • Uday Khanna (70yo)

    Independent Non Executive Director

    • Tenure: 5.7yrs
    • Compensation: ₹2.42m
  • Meera Shankar (68yo)

    Independent Non Executive Director

    • Tenure: 5.4yrs
    • Compensation: ₹2.24m
  • Sabyaschi Patnaik

    President of Operations & Whole Time Director

    • Tenure: 4.6yrs
    • Compensation: ₹27.40m

Company Information

Pidilite Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pidilite Industries Limited
  • Ticker: 500331
  • Exchange: BSE
  • Founded: 1959
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: ₹670.024b
  • Shares outstanding: 508.00m
  • Website: https://www.pidilite.com

Location

  • Pidilite Industries Limited
  • Ramkrishna Mandir Road
  • Off. Mathuradas Vasanji Road
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500331BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
PIDILITINDNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995

Biography

Pidilite Industries Limited, together with its subsidiaries, manufactures and sells consumer and specialty chemicals in India and internationally. The company operates in two segments, Consumer & Bazaar Pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:39
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.