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 Bearish range
- A key technical factor - KST has been Bearish since 06 May 2026
4
With ROE of 22.7, it has a Very Expensive valuation with a 13.9 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 -2.38%, its profits have risen by 17.4% ; the PEG ratio of the company is 3.5
5
High Institutional Holdings at 21.39%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.38% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you buy?
- 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, Medium Return
Absolute
Risk Adjusted
Volatility
Pidilite Inds.
7.77%
-0.11
20.98%
Sensex
-1.65%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
13.02%
EBIT Growth (5y)
14.04%
EBIT to Interest (avg)
48.82
Debt to EBITDA (avg)
0.20
Net Debt to Equity (avg)
-0.35
Sales to Capital Employed (avg)
1.43
Tax Ratio
25.57%
Dividend Payout Ratio
48.99%
Pledged Shares
0
Institutional Holding
21.58%
ROCE (avg)
33.82%
ROE (avg)
20.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
64
Industry P/E
46
Price to Book Value
15.60
EV to EBIT
48.91
EV to EBITDA
43.78
EV to Capital Employed
23.49
EV to Sales
10.72
PEG Ratio
3.14
Dividend Yield
0.99%
ROCE (Latest)
44.44%
ROE (Latest)
22.70%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
14What is working for the Company
NET SALES(Q)
Highest at Rs 4,551.55 cr
PBDIT(Q)
Highest at Rs 1,193.89 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 26.23%
PBT LESS OI(Q)
Highest at Rs 1,085.58 cr.
PAT(Q)
Highest at Rs 861.73 cr.
EPS(Q)
Highest at Rs 8.57
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Pidilite Inds.
Net Sales - Quarterly
Highest at Rs 4,551.55 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 4,551.55 cr has Grown at 21.27%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 1,193.89 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 26.23%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 1,085.58 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1,085.58 cr has Grown at 30.67%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 861.73 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 861.73 cr has Grown at 28.2%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 8.57
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Pidilite Inds.
Non Operating Income - Quarterly
Highest at Rs 92.00 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income