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Pidilite Industries Ltd. Stock Analysis

Large Cap
Evaluated by 6367 users | BSE: 500331 | NSE: PIDILITIND |
Chemicals
Pidilite Industries, a well known name in adhesives market, was incorporated in 1969. Pidilite Industries is the market leader in adhesives and sealants, construction chemicals, hobby colours and polymer emulsions in India.Over two-third of the company’s sales come from products and...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Pidilite Industries Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 23.78%22.41%24.9%24.43%24%32.01%27.16%23.94%23.07%25.32%
Value Creation Index 0.980.801.000.960.921.561.180.920.851.03
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,6573,1273,6784,2834,8445,3615,6176,0787,0787,294
Y-o-Y Gr. Rt.-17.7%17.6%16.5%13.1%10.7%4.8%8.2%16.4%3.1%
Adjusted EPS (Rs.) 5.986.348.068.759.9415.7216.9217.6318.5822.75
Y-o-Y Gr. Rt.-6%27.1%8.6%13.6%58.2%7.6%4.2%5.4%22.4%
Book Value per Share (Rs.) 21.4326.0132.2238.0844.2851.3867.4870.2181.4787.48
Adjusted Net Profit 3033224134495098068678959441,156
Net Op. Cash Flow (Rs. Cr.) 2993674723945529077947968451,280
Debt to Cash Flow from Ops 1.120.880.240.120.110.090.120.160.130.14
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Pidilite Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.9%8.5%9.1%3.1%
Adjusted EPS 16%18%10.4%22.4%
Book Value per Share 16.914.697.4
Share Price 28.6% 21.4% 23.9% 12.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 30.9626.7627.824.924.1232.8528.3925.4124.4526.87
Operating Profit Margin (%) 17.715.8116.1815.8116.0421.9822.6122.1319.4821.66
Net Profit Margin (%) 11.3410.2411.1710.4110.4315.0615.414.7113.3315.88
Debt to Equity 0.310.240.070.020.030.030.030.030.030.04
Working Capital Days 10210297979796102118121126
Cash Conversion Cycle 62625652524851565860
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 70.19%
Institutions 19.21%
Non-Institutions 10.54%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Pidilite Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Pidilite Industries Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Pidilite Industries Ltd.'s performance infers:

Pidilite Industries Ltd. earnings have grown by 18%, whereas share price has appreciated 21.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Pidilite Industries Ltd. share prices over the last 10 years. Here is what we found out:

Pidilite Industries Ltd. share price has appreciated 26.1% annually over the past ten years.

Pidilite Industries, a well known name in adhesives market, was incorporated in 1969. Pidilite Industries is the market leader in adhesives and sealants, construction chemicals, hobby colours and polymer emulsions in India.Over two-third of the company’s sales come from products and segments it has pioneered in India.

The company has diversified in various segments such as adhesives and sealants, construction and paint chemicals, automotive chemicals, art

Pidilite Industries, a well known name in adhesives market, was incorporated in 1969. Pidilite Industries is the market leader in adhesives and sealants, construction chemicals, hobby colours and polymer emulsions in India.Over two-third of the company’s sales come from products and segments it has pioneered in India.

The company has diversified in various segments such as adhesives and sealants, construction and paint chemicals, automotive chemicals, art materials, industrial adhesives, industrial and textile resins and organic pigments and preparations. It has created brands like Fevicol, Dr Fixit, Cyclo, hobby ideas, Roff and M-Seal.

To facilitate better global networking, Pidilite Industries has established offices / subsidiaries in several countries including Singapore, USA, Brazil, UAE, Saudi Arabia, Indonesia, Egypt, Bangladesh, UK, Kenya, South Africa and Ghana.In India it has subsidiaries namely Bhimad Commercial Company and Madhumala Traders.

Pidilite also established a state-of-the-art research centre in Singapore that is now a member of Singapore Chemical Industry Council (SCIC).

Products

Under adhesives and glue segment it has manufactured wide range of products white glue, paper glue, termite treatment, PVC insulation tape, epoxy putty, etc. It has created brand like terminator, Fevi Stik, Fevikwik,etc.

Art Materials and Stationary- Under this it manufactures Crayons, Oil pastels, markers, brushes, glass colours, Acrylic colours, etc. It also publishes books on craft, furniture design, hobby etc. In this segment it has created brands like hobby ideas, colstar, fevicraft, etc.

Construction chemicals- Pidlite manufactures wide range of solution in waterproofing, repair materials, coating, flooring, sealants and admixtures.

Fabric Care- The Company has created products like brightener, starch, stain remover and whitener. It markets these product under the brand name Ranipal.

Milestones

2009- Pidilite acquires Woodlok, retail wood working brand of Henkel2008- Pidilite acquires Holdtite business of Hard Castle Ltd. (Sealants)2007 - Pidilite Brazil [Pidilite Do Brasil Desenvolvimento De Negocios Ltda] acquired Pulvitec, an Adhesives & Sealants company in Brazil.2006 - Pidilite establishes its R&D centre in Singapore to attract international talent and expand product innovation strategies.

The company also acquires Cyclo Industries LLC, makers of Automotive Maintenance products. The product range includes maintenance, performance and appearance products for DIY (Do-it-Yourself) and professional car care segment. Cyclo products are sold in USA and over 50 other countries.

Pidilite USA Inc, acquires businesses and assets of Sargent Art Inc., makers of art materials which has been selling world-class art materials in USA for over 50 years.

Pidilite acquires Tristar Colman brand and business, now known as Colstar. Tristar Fine Art, is a market leader in brushes for drawing and painting while Tristar Colman is a well-known brand of canvas and student art colours.

2005 - To further international ventures and foreign acquisitions, Pidilite launches its first-ever international, wholly-owned subsidiary under the banner Pidilite International in Singapore. This is followed by acquiring Chemson Asia Pvt. Ltd, a Singapore-based brand that manufactured waterproof coating and emulsion paints.Pidilite takes over Jupiter Chemicals in Dubai. Furthering its international operations, the company incorporates two more subsidiaries in Brazil and Middle East.

2004 - Pidilite acquired the Roff brand of Construction Chemicals. Roff is a pioneer in construction chemicals in India and is well known for modern tile fixing solutions like tile-on-tile and waterproof tile joints.

The company grows a 1000 times in 45 years. The annual turnover touches a pivotal 1000 crores. A proud year for the brand.

2002 - Steelgrip, a leading brand of PVC insulation tape in India is acquired. Another segment added to the product portfolio of the brand.

2001 - Pidilite launches the Dr. Fixit range of Construction Chemicals, thus diversifying its product range. The extensive product range is used for waterproofing and repair for both new & old constructions.

2000 - M-seal, leading brand of epoxy compounds acquired, thus laying the foundation for the Maintenance Division of the company.

Awards

ABBY Award 2013: Fevikwik wins Best Brand Website - Bronze

The company bagged ABBY awards for its Integrated Campaign of the year - Silver -2005.

It also bagged Cannes award for its creative advertisement.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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