Pidilite Industries Limited

PIDILITIND.BO•specialty-chemicals

Current Price

3,100.70INR

per share

Fair Value

786.89INR

Overvalued

294.0%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 10.04%, higher than industry average of 8.49%.

Growth Trajectory

Profitability

In the growth phase company makes 21.09% profit on every dollar of sales, higher than industry average of 10.57%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.54% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

371.94B INR

Equity Value

400.25B INR

FCF Yield

14.76%

Average ROIC

27.98%

Cost of Capital

8.02%

P/E Ratio

70.62x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	134.52B INR	123.37B INR
Operating Income or EBIT	30.59B INR	25.25B INR
Interest Expense	523M INR	511.90M INR
Book Value Of Equity	97.54B INR	84.07B INR
Book Value Of Debt	4.54B INR	3.82B INR
Cash and Marketable Securities	34.94B INR	24.01B INR
Number of Shares Outstanding	508.65M	--
Minority interests	2.10B INR	0 INR
Current Stock Price	3100.70 INR	--
Effective Tax Rate	27.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+0.54%

9.03%Company

8.49%Industry

At Industry Level

Operating Margin

+12.18%

22.74%Company

10.56%Industry

Above Industry

Pidilite Industries Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 63% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	234.80B INR	Add
Present Value (Cash Flow Over Next 10 Years)	137.14B INR	Add
Value of Operating Assets	371.94B INR	Sub-total
Debt	4.54B INR	Subtract
Minority Interests	2.09B INR	Subtract
Cash	34.94B INR	Add
Value of Equity	400.25B INR	Sub-total
Number of Shares	508.65M shares	Divisor
Estimated Value per Share (Fair Value)	786.89 INR	Total
Current Market Price	3.10K INR	Reference

Financial Projections

Total FCF Present Value

137.14B INR

Avg Revenue Growth

7.53%

Avg Operating Margin

20.72%

Avg ROIC

27.98%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	150.10B INR	165.17B INR	181.75B INR	200.00B INR	220.07B INR	239.79B INR	258.69B INR	276.30B INR	292.13B INR	305.71B INR	319.93B INR
Growth Rate	11.59%	10.03%	10.03%	10.03%	10.03%	8.96%	7.88%	6.80%	5.72%	4.65%	4.65%
PROFITABILITY
Operating Income	34.13B INR	35.74B INR	38.32B INR	41.07B INR	43.98B INR	47.92B INR	51.69B INR	55.21B INR	58.38B INR	61.09B INR	63.93B INR
Operating Margin	22.74%	21.63%	21.08%	20.53%	19.98%	19.98%	19.98%	19.98%	19.98%	19.98%	19.98%
EBIT (1-tax)	24.92B INR	26.09B INR	27.97B INR	29.98B INR	32.10B INR	34.69B INR	37.12B INR	39.31B INR	41.21B INR	42.76B INR	44.75B INR
CASH FLOW
Reinvestment	9.08B INR	9.99B INR	11.00B INR	12.10B INR	11.88B INR	16.66B INR	15.51B INR	13.95B INR	11.97B INR	12.53B INR	23.43B INR
Free Cash Flow	15.83B INR	16.09B INR	16.97B INR	17.87B INR	20.21B INR	18.03B INR	21.60B INR	25.36B INR	29.24B INR	30.23B INR	21.31B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	504.00B INR
Present Value	14.72B INR	13.91B INR	13.65B INR	13.36B INR	14.05B INR	11.63B INR	12.89B INR	13.97B INR	14.83B INR	14.08B INR	—
EFFICIENCY
ROIC	37.11%	34.23%	32.45%	30.83%	29.36%	28.62%	26.92%	25.62%	24.62%	23.84%	8.88%
Cost of Capital	7.53%	7.53%	7.53%	7.53%	7.53%	7.80%	8.07%	8.34%	8.61%	8.88%	8.88%
Sales/Capital	1.65x	1.65x	1.65x	1.65x	1.65x	1.13x	1.13x	1.13x	1.13x	1.13x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)