Pidilite Industries Ltd.
ISIN: INE318A01026 • Market Cap: ₹1.68 Lakh Cr
The 5-Pillar Quality Audit for Pidilite Industries Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (24.5%), Return on Capital Employed (28.7%), and equity compounding (22.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.01 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (7.5%) and 3Y PAT CAGR (15.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 63.40 vs PEG of 4.70 and Dividend Yield of 1.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 69.2%, backed by 21.6% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 28.7%)
Pidilite Industries Ltd. generates exceptional return on capital employed of 28.7%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 22.6%)
Shareholder equity compounds at a healthy 22.6%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.01)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Chemicals)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Chemicals space.
Quantitative Strategy Eligibility
Checking PIDILITIND against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 75/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Chemicals Sector Peer Comparison
Compare PIDILITIND directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Pidilite Industries Ltd. (PIDILITIND)Current | 75/100 | ₹1.68 Lakh Cr | 63.40 | 28.7% | 0.01 | — |
| Solar Industries India Ltd. (SOLARINDS) | 80/100 | ₹1.79 Lakh Cr | 89.97 | 30.2% | 0.23 | View |
| SRF Ltd. (SRF) | 73/100 | ₹76,329 Cr | 35.31 | 15.2% | 0.36 | View |
| Coromandel International Ltd. (COROMANDEL) | 72/100 | ₹60,148 Cr | 32.83 | 21.6% | 0.07 | View |
| Linde India Ltd. (LINDEINDIA) | 61/100 | ₹57,146 Cr | 104.59 | 12.2% | 0.00 | View |
| Gujarat Fluorochemicals Ltd. (FLUOROCHEM) | 55/100 | ₹51,405 Cr | 83.59 | 10.6% | 0.28 | View |
Frequently Asked Questions: Pidilite Industries Ltd.
Q:What is the 5-Pillar Fundamental Score for Pidilite Industries Ltd. (PIDILITIND)?
Pidilite Industries Ltd. has a RupeeTools Fundamental Score of 75/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (87/100), Financial Health (92/100), Growth (62/100), Valuation (38/100), and Ownership Quality (82/100).
Q:Is PIDILITIND fundamentally strong for long-term investment?
Yes, PIDILITIND exhibits solid fundamental strength with a 75/100 score, driven by a return on equity of 22.6% and a debt-to-equity ratio of 0.01.
Q:Does PIDILITIND pass the Coffee Can Investing filter?
No. PIDILITIND does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does PIDILITIND compare against other Chemicals peers?
Within India's Chemicals sector, PIDILITIND trades at a P/E of 63.40 and generates an ROCE of 28.7%. Compare its 5-Pillar score of 75/100 against top sector peers like Solar Industries India Ltd. (80/100), SRF Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.