Pidilite Industries (NSEI:PIDILITIND) - Share price, News & Analysis

Q: What is the Fair Price of PIDILITIND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PIDILITIND (₹2143.15) is trading above our estimate of [[fair value]] (₹499.88)

PIDILITIND fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

PIDILITIND Stock Overview

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

Rewards

Earnings are forecast to grow 18.12% per year

Earnings have grown 8% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

Pidilite Industries Competitors

SRF

BSE:503806

₹674.7b

Atul

BSE:500027

₹234.0b

DCM Shriram

BSE:523367

₹144.7b

BASF India

BSE:500042

₹106.7b

Price History & Performance

Summary of all time highs, changes and price drops for Pidilite Industries
Historical stock prices
Current Share Price	₹2,143.15
52 Week High	₹2,764.70
52 Week Low	₹1,988.55
Beta	0.27
1 Month Change	-0.94%
3 Month Change	-10.63%
1 Year Change	-0.56%
3 Year Change	77.64%
5 Year Change	162.03%
Change since IPO	9,985.41%

Recent News & Updates

May 21

These 4 Measures Indicate That Pidilite Industries (NSE:PIDILITIND) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

May 03

Pidilite Industries (NSE:PIDILITIND) Might Be Having Difficulty Using Its Capital Effectively

What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common...

Shareholder Returns

	PIDILITIND	IN Chemicals	IN Market
7D	1.7%	2.7%	2.3%
1Y	-0.6%	-1.5%	-0.9%

Return vs Industry: PIDILITIND matched the Indian Chemicals industry which returned -1.5% over the past year.

Return vs Market: PIDILITIND matched the Indian Market which returned -0.9% over the past year.

Price Volatility

Is PIDILITIND's price volatile compared to industry and market?
PIDILITIND volatility
PIDILITIND Average Weekly Movement	4.0%
Chemicals Industry Average Movement	6.7%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: PIDILITIND is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PIDILITIND's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1959	6,376	Bharat Puri	https://www.pidilite.com

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, and Business to Business. It offers adhesives, sealants, art and craft materials, construction and paint chemicals, and others for use by carpenters, painters, plumbers, mechanics, households, students, offices, etc. The company also provides industrial adhesives and resins, construction chemicals, organic pigments, pigment preparations, etc. for use in various industries, including packaging, joineries, textiles, paints, printing inks, paper, leather, etc. In addition, it offers specialty acetates, raw materials, etc.; and waterproofing services, as well as wood finishes.

Pidilite Industries Fundamentals Summary

How do Pidilite Industries's earnings and revenue compare to its market cap?
PIDILITIND fundamental statistics
Market Cap	₹1.10t
Earnings (TTM)	₹12.08b
Revenue (TTM)	₹99.21b

91.3x

P/E Ratio

11.1x

P/S Ratio

Is PIDILITIND overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PIDILITIND income statement (TTM)
Revenue	₹99.21b
Cost of Revenue	₹54.44b
Gross Profit	₹44.77b
Other Expenses	₹32.69b
Earnings	₹12.08b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	23.76
Gross Margin	45.12%
Net Profit Margin	12.17%
Debt/Equity Ratio	4.4%

How did PIDILITIND perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PIDILITIND undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PIDILITIND?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PIDILITIND. This is calculated by dividing PIDILITIND's market cap by their current preferred multiple.
What is PIDILITIND's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹1.10t

PIDILITIND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	11.1x
Enterprise Value/EBITDA	59.7x
PEG Ratio	5x

Price to Earnings Ratio vs Peers

How does PIDILITIND's PE Ratio compare to its peers?

PIDILITIND PE Ratio vs Peers

The above table shows the PE ratio for PIDILITIND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.9x
503806 SRF	36.1x	13.0%	₹674.7b
500027 Atul	39.1x	18.2%	₹234.0b
523367 DCM Shriram	13.9x	n/a	₹144.7b
500042 BASF India	18.6x	n/a	₹106.7b
PIDILITIND Pidilite Industries	91.3x	18.1%	₹1.1t

Forward PE

Price-To-Earnings vs Peers: PIDILITIND is expensive based on its Price-To-Earnings Ratio (90.2x) compared to the peer average (26.9x).

Price to Earnings Ratio vs Industry

How does PIDILITIND's PE Ratio compare vs other companies in the IN Chemicals Industry?

Price-To-Earnings vs Industry: PIDILITIND is expensive based on its Price-To-Earnings Ratio (90.2x) compared to the Indian Chemicals industry average (16.9x)

Price to Earnings Ratio vs Fair Ratio

What is PIDILITIND's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PIDILITIND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	91.3x
Fair PE Ratio	29x

Price-To-Earnings vs Fair Ratio: PIDILITIND is expensive based on its Price-To-Earnings Ratio (90.2x) compared to the estimated Fair Price-To-Earnings Ratio (28.9x).

Share Price vs Fair Value

What is the Fair Price of PIDILITIND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PIDILITIND (₹2143.15) is trading above our estimate of fair value (₹499.88)

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

Price to Earnings Growth Ratio

PEG Ratio: PIDILITIND is poor value based on its PEG Ratio (5x)

Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PIDILITIND's forecast earnings growth (18.1% per year) is above the savings rate (6.7%).

Earnings vs Market: PIDILITIND's earnings (18.1% per year) are forecast to grow faster than the Indian market (17.4% per year).

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

Revenue vs Market: PIDILITIND's revenue (11.1% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: PIDILITIND's revenue (11.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PIDILITIND's Return on Equity is forecast to be high in 3 years time (22.4%)

Discover growth companies

Past Performance

How has Pidilite Industries performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

8.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PIDILITIND has high quality earnings.

Growing Profit Margin: PIDILITIND's current net profit margins (12.2%) are lower than last year (15.5%).

Past Earnings Growth Analysis

Earnings Trend: PIDILITIND's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: PIDILITIND's earnings growth over the past year (6.7%) is below its 5-year average (8% per year).

Earnings vs Industry: PIDILITIND earnings growth over the past year (6.7%) underperformed the Chemicals industry 29.6%.

Return on Equity

High ROE: PIDILITIND's Return on Equity (18.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Pidilite Industries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PIDILITIND's short term assets (₹40.2B) exceed its short term liabilities (₹23.3B).

Long Term Liabilities: PIDILITIND's short term assets (₹40.2B) exceed its long term liabilities (₹5.9B).

Debt to Equity History and Analysis

Debt Level: PIDILITIND has more cash than its total debt.

Reducing Debt: PIDILITIND's debt to equity ratio has increased from 2.7% to 4.4% over the past 5 years.

Debt Coverage: PIDILITIND's debt is well covered by operating cash flow (332.5%).

Interest Coverage: PIDILITIND's interest payments on its debt are well covered by EBIT (38.2x coverage).

Balance Sheet

Discover healthy companies

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.46%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PIDILITIND's dividend (0.47%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: PIDILITIND's dividend (0.47%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.1%), PIDILITIND's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (87.5%), PIDILITIND's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure

CEO

Bharat Puri (60 yo)

7.17yrs

Tenure

₹134,100,000

Compensation

Mr. Bharat Tilakraj Puri has been the Managing Director of Pidilite Industries Limited since April 10, 2015 and has been its Executive Director since May 28, 2008. Mr. Puri serves as the Chief Executive Of...

CEO Compensation Analysis

Compensation vs Market: Bharat's total compensation ($USD1.71M) is above average for companies of similar size in the Indian market ($USD1.25M).

Compensation vs Earnings: Bharat's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: PIDILITIND's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: PIDILITIND's board of directors are seasoned and experienced ( 12.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31