Please refer to important disclosures at the end of this report
1
Pidilite Industries Limited is a holding company. Pidilite is a dominant player in
India’s adhesives & sealants and construction chemicals industry with iconic
brands like Fevicol, M-Seal, Fevikwik and Dr. Fixit.
W
ith the strong brand, robust
pricing power and superior management bandwidth would continue to drive
growth for Pidilite, going forward as well. It seems that Pidilite’s core strengths
continue to remain intact despite near-term headwinds on volume growth front
due to weak consumer demand. Along with continuous innovations and spends
across its market leading brands it should move the sales growth which will help
the company’s financials to improve going further. The company's health
y
Balance sheet is driven by large net worth and robust debt protection metrics.
Pidilite has no long-term debt and the company is virtually debt free. The
company has also reported a good profit after Tax (PAT) of 20%+ CAGR for the
last 3 years. The company has posted a consistent return on equity (ROE) o
f
20%+ for the last 5 years and for FY16 the company has reported a ROE o
f
26.3%. Hence Buy.
BUY
CMP `730
Stock Info
Sector
Beta 0.7
Bloomberg Code
Shareholding Pattern (%)
Promoters 69.6
MF / Banks / Indian Fls 7.2
FII / NRIs / OCBs 14.0
Indian Public / Others 9.3
Abs. (%) 3m 1yr 3yr
Sensex 1.0 3.7 36.8
Pidilite Industries 1.3 25.5 178.4
Chemicals
Market Cap (
`
cr) 37,418
52 Week High / Low 770/521
Avg. Daily Volume 1,83,908
Face Value (
`
)1
BSE Sensex 28,082
Nifty 8,709
Reuters Code PIDL.BO
PIDI@IN
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Pidilite Industries
Others | Chemicals
October 13, 2016
Pidilite Industries | Chemicals
October 13, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Pidilite Industries
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)