Pidilite Industries Limited, also known as Pidilite is a manufacturing company of Indian origin. Renowned for manufacturing adhesives, Pidilite also manufactures several types of industrial chemicals.
Market capitalisation of Pidilite
The market capitalisation of Pidilite as of March 2018 is around Rs.47,100 crore.
Company’s wealth and recent performance
Q1 FY 2018-19
- For the quarter ended on June 30, 2018, Pidilite Industries Limited reported its consolidated net sales to be at Rs.1,818 crore - a growth of 23% over the same quarter of the previous fiscal year.
- EBITDA, before non-operating income, for the quarter stood at Rs.384 crore - a growth of 20% y-o-y. Similarly, the company also reported an increase of a little over 12% in its profit before tax. The figure on a comparable basis grew from Rs.330 crore to Rs.377 crore y-o-y.
- Considering the company’s profit after tax, it grew by 6% y-o-y to Rs.240 crore. The lower rate of growth in the consolidated PAT came on account of the effect of tax during the quarter, along with the inter-company transfer of certain intangible assets.
- For the year ended on March 31, 2018, Pidilite Industries Limited reported its consolidated total income to be at Rs.6,367.1 crore, in comparison to Rs.6,174 crore reported for the previous fiscal year.
- The company’s profit before tax on a y-o-y basis grew by a little under 10% from Rs.1,248 crore to Rs.1,358 crore. A similar growth was also seen in the profit after tax from Rs.863 crore to Rs.966 crore y-o-y.
- Consequently, the company’s basic earnings per share grew from Rs.16.77 to Rs.18.95 y-o-y.
- As of March 31, 2018, the company’s consolidated non-current liabilities were worth Rs.247 crore, as against Rs.154 crore reported at the end of the previous fiscal year.
Q3 FY 2017-18
- The net sales for Q3 grew by a little over 20% when compared to the corresponding quarter last year and stood at around Rs.1,300 crore
- When compared to the corresponding quarter last year, the PAT (Profit After Tax) grew by 17% and stood at Rs.239 crore
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), before non-operating income stood at Rs.359 crore, a 28.9% rise when compared to Q3 of last year
- The net sales for Q3 grew by a little over 17% when compared to the corresponding quarter last year and stood at around Rs.1,530 crore
- When compared to the corresponding quarter last year, the PAT (Profit After Tax) grew by 18% and stood at Rs.239 crore
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), before non-operating income stood at Rs.372 crore, a 28% rise when compared to Q3 of last year
Pidilite stock trends in 2018
- The stock price of Pidilite in the beginning of 2018 stood at around Rs.900. the prices spiked in the first few days of the month and was at its highest at around Rs.928. By the end of the month, however, the stock price declined and stood at around Rs.881
- The price of Pidilite stocks was reported at around Rs.900 at the beginning of February 2018. There were minor fluctuations of the price during the month and eventually ended the month at roughly Rs.882
- On March 1, 2018, the opening share price of Pidilite Industries Limited was observed to be Rs.898.60. The price increased marginally over the course of the month to ascend into the Rs.900 region.
- In April, the rise was far more discernible as the shares gained close to 20% in this period. The price went up to cross the Rs.1,050 mark, with the closing price on April 30 being Rs.1,086.20.
- Over the course of May, the Pidilite Industries stock price found some momentum at levels above Rs.1,100. The shares were traded well above this mark and eventually, they hit their 52-week high at Rs.1,195.40 on the NSE. The shares went down marginally in June to descend back into the Rs.1,000 region.
- Things stayed that way up until August, when the shares rose once again to reach their previous levels at Rs.1,100. A final dividend of 600% was also announced in the same month. As of September, the Pidilite shares were seen trading hands at levels above Rs.1,110.
Pidilite stock trends in 2016 – 2017
- In the beginning of 2016, the stock price of Pidilite stood at around Rs.555. The stock price remained stagnant through most of January 2016 and eventually stood at around Rs.560 at the end of the month
- In the beginning of April, the prices stood at almost Rs.590, after which it spiked a but to almost Rs.625. At the end of April the stock prices stood at around Rs.600
- In the months to follow, the stock price of the company rose, and in the month of August, it stood at around Rs.735. However, the prices then declined a bit and by the end of the month of August, the stock price stood at around Rs.700
- The stock prices then went on to drop by the month of December when it stood at around Rs.640 at the beginning of the month. The month didn’t prove too good for the company as the stocks dropped further and ended the year at almost Rs.590
- The stock price of Pidilite started off 2017 at around Rs.594 and the prices shot up during the month and ended the month of January at around Rs.680
- In the beginning of April, the stock price stood at around Rs.700 and went uphill from there for the rest of the month and ended the month at around Rs.720
- The prices spiked further into the month of August 2017 when the stock prices hit almost Rs.800 in the beginning of August. The company enjoyed the rise in stock prices throughout the month, and at the end of the month, the price stood at around Rs.832
- The company then experienced a drastic drop in the stock prices in the month of November and at the start of December 2017, the stock price stood at only Rs.643. The company’s bad fortune continued along the month and eventually ended the year at around Rs.590 only
Why should you invest in Pidilite?
- In an economy that is constantly changing, Pidilite has managed to deliver a steady performance this year
- Q3 of FY18 was a good year for the company as it saw robust mix and broad based volume growth across all their categories
- In spite of commodity cost inflation, the company managed to, not only remain profitable, but also grow substantially
- The company’s earnings have been growing at a steady rate for the last few years. The Compound Annual Growth Rate (CAGR) of the company has been steady at around 11% for the last few years
- The operating revenue of Pidilite has been growing at almost 8% for the last few years
Pidilite has been manufacturing several products for many applications for decades. One of their most popular products is Fevicol, and its other brands are Fevikwik, M-seal, Dr. Fixit, etc. Headquartered in Mumbai, the company has manufacturing centres all across the country including Maharashtra, Gujarat and Himachal Pradesh.
Founded in 1959, Pidilite started off with a single product and a single factory. Fevicol was the company’s first product, and was launched as a substitute to the glue made of animal fat, which was the only type of glue available back then. Four years after establishing the company, Pidilite established a manufacturing unit in Mumbai, which is now where their corporate office is located. Later in 1993, Pidilite was listed in the Bombay Stock Exchange (BSE), and in 1997 was one of the Top 15 brands as mentioned in FE Brandwagon Year Book 1997. The company then went on to launch M-seal and Dr.Fixit in 2000 and 2001 respectively, two of their more popular products. In 2002, Fevicol’s famous ‘Bus ad’ won the Silver Lion award at Cannes Lions International Festival of Creativity 2002. In 2004, the company reported a turnover of Rs.1000 crore. This feat was achieved in only 45 years. Pidilite in now a multinational company with awards and accolades to go with the brand.
Management of Pidilite
Madhukar Balvantray Parekh - Chairman
Mr. Madhukar B. Parekh’s commenced his career with Pidilite in 1972, after his journey with Abbot Laboratories, located in the United States of America. He completed his Masters in Chemical Engineering from the University of Wisconsin, and was ranked 4th in the IIT entrance exam, and in spite of this, he chose to study chemical technology.
M.B. Parekh has received several awards including the EY Entrepreneur of the Year Award 2014 in the category of Consumer Products. He is also associated with the several awards that the company has received such as ‘11th India Business Leader Awards’ (IBLA), ‘Most Promising Company of the Year’ at the CNBC-TV18, etc.
Pidilite listing details and Indices
Pidilite stocks are listed on Nifty 200, Nifty 500, Nifty 100, S&P BSE 100, S&P BSE 500, S&P BSE 200 amongst several other indices.
BSE code - 500331
NSE code - PIDILITIND
ISIN - INE318A01026
Sector – CHEMICALS
2nd n 3rd floor,
Hosto Centre, #43, Millers Road,
Bengaluru, Karnataka 560052
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