Title Page

Executive Summary
Index

Chapter 1 Introduction to Pidilite

1.1 Rationale of the Study: Why Pidilite?

Chapter 2 Industry Profile

2.1 Industry profile of the company

2.2 Industry Size, Growth trends
2.3 Major Players and their Market Share
2.4 Recent Initiatives by the company
2.5 Government Support and Policies

Chapter 3 Company Profile

3.1 History-Timeline
3.2 Management Team
3.3 Milestones, Geographical Spread
3.4 Organic and Inorganic Growth
3.5 Directors and Independent Directors
3.6 Awards, Legal aspects if any
3.7 Various initiatives towards social and environmental inclusion
3.8 Key highlights of the company website

Chapter 4 Data Analysis & Interpretation

4.1 Product Profiles

4.2 Brands of the company
4.3 Advertisement and Branding Strategies
4.4 Shareholding Patterns
4.5 Financial Trends
4.5.1 Last 5 years Data Analysis
4.5.2 Stock Price Pattern in the Last 5 years
4.5.3 Mutual Funds History
4.5.4 EBIDTA Structure
4.6 Ratios
Chapter 5 Observations & Findings

5.1 OUTLOOK ON OPPORTUNITIES, THREATS, RISKS, AND CONCERNS

5.2 Target Price based on earlier Evaluation
5.3 Sales Pattern

Chapter 6 Suggestions
6.1 Suggestion on current stock conditions

Chapter 7 Conclusion
7.1 Overall learning experience
7.2 Future work on the same topic

Bibliography
List of Tables

1. Table 1: Shareholding Patterns…………………………………………………… 28

2. Table 2: Last 5-years Financial Data ……………………………………………..
List of Graphs/ Charts

1. Fig 1: Global Adhesive and Sealant Market Share ……………………………………. 8

2. Fig 2 Adhesive and Sealant Market Size ………………………………………….. 9
3. Fig 3 Milestones ………………………………………………………………. 16
4. Fig 4: Share Holding Patterns ………………………………………………….. 28
5. Fig 5: Performance by Industry Segments ……………………………………………. 29
6. Fig 6: Balance Sheet for the last 2 years ………………………………………………
7. Fig 7: Last 5-Year Performance by Business Segments……………………………….. 31
8. Fig 8: NSE Price Data for last 5 years ………………………………………………… 33
9. Fig 9: Debt Equity Ratio …………………
10. Fig 10: Current Ratio
11.
Chapter 1
________________________________________________________________
Introduction to Pidilite

1.1 Rationale of the Study: Why Pidilite?

Pidilite Industries Limited commonly referred to as Pidilite is a consumer-centric company

committed to quality and innovation. It has been the market leader in the industry of adhesives
for years. Their main product is the most famous Fevicol, they also manufacture products across
verticals such as art materials and stationery; food and fabric care; car products, adhesives, and
sealants; and specialties industrial products like adhesives, pigments; textile resins, leather
chemicals, and construction chemicals.

The main reason to choose Pidilite is its History and its Evolution Over the years. Before Fevicol
Glue or Adhesives were really difficult to use. The companies manufacturing Glues used Animal
Fats for manufacturing. These Glues needed to be heated first and then again cooled. This was a
very tedious process and cost a lot even on glue and the labor needed to do this. Also these glues
never directly reached the end users that are the carpenters. Pidilite Founder Balvant Parekh
realized this problem and created a synthetic adhesive Fevicol. It was easy to use and Fevicol
was directly sold to the carpenters. Pidilite is one most influential companies in the last decade.
Today it stands on the Market Cap of 1.39 trillion INR. The company started its operations in the
year 1959, with its most popular adhesive brand named Fevicol and since then it has established
its presence in 80+ countries across the world.
Chapter 2
________________________________________________________________
Industry Profile

2.1 Industry profile of the company

The Indian adhesives and sealants market is highly concentrated in terms of revenue. The top
five players account for a combined share of more than 90%, making the market highly
competitive. Pidilite Industries Limited is the market leader, and other major companies (not in
any particular order) include Henkel Adhesives Technologies India Private Limited, Sika AG,
Arkema Group, and H.B. Fuller Company, among others.

Fig 1: Global Adhesive and Sealant Market Share

As seen in the fig1 The Global Adhesive and Sealant Market is divided into various Industries
like Papers & Packaging. Building & Construction, Woodworking, Consumer/DIY, Automotive
& Transportation, Leather & Footwear, and others. Where Building & Construction stands at the
share of 21.76 %.

2.1.1 Driving Factors

Various properties of the product such as flexibility, solvent-free, lower costs, less vibration, high
fatigue & thermal shock tolerance along with reduced waste and high productivity have
increased its application in the automotive industry. Adhesive bonding technologies have
reduced the time and costs required to bond automotive components, while ultimately reducing
overall weight & fuel consumption and improving efficiency. The product is increasingly
replacing conventional materials such as fasteners used indoors, hoods, deck lid flanges, roof
panels, and dashboards along with other automobile components. The Global Healthcare Sector
has grown a lot in the past few years. As a result, all the Industries related to it including the
Medical Adhesive Market have grown along with it. Medical Adhesives have thrived as the need
for complex Medical equipment has risen. The growth of e-commerce commodities demand, in
which packaging is a necessary factor, is anticipated to drive product demand over the coming
years.

2.1.2 Restraining Factors

The use and manufacturing of Adhesives and Sealants release abundant chemical gases which
can be harmful to both the ecosystem and Humans. The rising awareness among consumers has
negatively impacted the industries. Many different laws and regulations have been made to
control the release of harmful gases from adhesives. The industrial adhesives market is likely to
face a challenge due to volatile crude oil prices. Crude oil derivatives such as vinyl acetate
monomer(VAM), polyols, toluene diisocyanate (TDI), and methylene diphenyl diisocyanate
(MDI) are used in the manufacture of raw materials for industrial adhesives. The fluctuation in
the price of crude oil negatively impacts the raw material costs, thus leading to the high pricing
of the product. This is likely to hinder market growth over the coming years.

2.2 Industry Size, Growth trends

The global adhesives and sealants market is projected to grow from $65.38 billion in 2022 to
$92.29 billion by 2029, at a CAGR of 5.0% in the forecast period. The India adhesives and
sealants market was valued at more than USD 1,100 million in 2021, and it is expected to
register an estimated CAGR of over 8% over the forecast period (2022-27).

Fig 2: Adhesive and Sealant Market Size

2.3 Major Players and their Market Share

There are numerous brands competing for the same group of consumers in the market.
The top 3 rivals of Pidilite Industries are listed below:
1. Tata Chemicals
2. BASF
3. BOC India

2.4 Recent Initiatives by the company

Paper cups, paper straws, paper bags, and other paper products are in high demand in the B2B
market. Additionally, they have introduced a range of chemicals and adhesives that enhance the
performance of paper products. Pidilite has concentrated on finding a way to provide an
FDA-compliant adhesive for paper straws and also concentrate on how to make paper bags
function better in extreme summer and winter weather, what they can do to increase heat
stability, and how to introduce new goods that achieve just that. Pidilite has focused on the tasks
at hand in relation to barrier coatings. They have concentrated on ways to increase the
effectiveness of procedures at a paper mill when it comes to paper coloring and paper coating.
Pidilite has concentrated on developing higher-quality polymers that will enhance the gloss and
other performance characteristics of paper. A well-equipped and well-staffed R&D center
continuously develops and enhances products for consumers, craftsmen, and industries.
Pidilite also established a state-of-the-art research center in Singapore that is now a member of
the Singapore Chemical Industry Council (SCIC).

2.5 Government Support and Policies

Chapter 3
________________________________________________________________

Company Profile

3.1 History

On July 28, 1969, Pidilite Industries Limited (PIL) was established as a consumer and specialty
chemical firm. In India, the company dominates the market for polymer emulsions, construction
chemicals, hobby colors, and adhesives and sealants. Millions of Indians now associate the
company's brand Fevicol with adhesives, and it is considered to be one of the most reliable
names in the country. Adhesives and Sealants, Craftsman Products, Polymer Emulsions, Paint
Chemicals, Automotive Chemicals, Art Materials and Stationery, Fabric Care Maintenance
Chemicals, Industrial Adhesives, Industrial Textile Resins, and Organic Pigments and
Preparations are among the company's product offerings. In 1973, Pidilite became the first
company in India to begin producing violet pigment. The company's consumer products segment
was established in 1984, and in 1989 it entered the market for fevicryl acrylic paints that change
the fabric and multi-surface painting. In 1993, the company launched its initial public offering of
equity shares. The company's plants in Mumbai and Vapi received ISO 9001 accreditation in
1995. According to the FE Brandwagon YearBook 1997, Fevicol, the company's flagship brand,
is among the Top 15 Indian brands. After two years, Pidilite bought the top optical whitener
brand, Ranipal, in 1999. In the following year, 2000, they bought the top epoxy compound brand,
M-Seal.In 2001, the company introduced the Dr. Fixit line of construction chemicals, and in
2002, it purchased Steelgrip, the top-selling PVC insulation tape brand in India. In 2004, Pidilite
once more purchased the Roff brand of construction chemicals. For its global operations, which
include the purchase of foreign firms and joint ventures, the company established a
wholly-owned subsidiary in Singapore in 2005 under the name "Pidilite International Pte
Ltd."Additionally in 2005, Pidilite purchased Chemson Asia Pte Ltd, a well-established
Singaporean firm engaged in the production of waterproof coating and emulsion paints,
expanding its current and expanding line of building chemicals and paints. The company also
bought Jupiter Chemicals in Dubai. Tristar Fine Art, a global leader in brushes for sketching and
painting, and Bamco Thailand, a construction chemical company, were both acquired by Pidilite
in 2006. Additionally, Pidilite has acquired Sargent Art Inc.'s operations and assets through a
subsidiary called Pidilite USA Inc. Delaware. The company has Pidilite Innovation Centre Pte
Ltd as the name of its R&D facility in Singapore. At its meeting on June 10, 2013, the Pidilite
Industries Board of Directors made the decision to look at bringing on a strategic partner for the
Synthetic Elastomer Project. On September 22, 2014, Pidilite Industries made the following
announcement: The Board of Directors of Pidilite Industries has authorized the slump sale
acquisition of Blue Coat Private Limited's adhesive business for a cash consideration of Rs
263.57 crore. On December 12, 2014, Pidilite Industries reported that on December 10, 2014,
Pidilite Chemical PLC, a private limited subsidiary business, was founded in Ethiopia for the
purpose of manufacturing adhesives, mastics paints, varnishes or similar coatings, printing
writing, and painting inks, etc.On April 16, 2015, Pidilite Industries revealed that its subsidiary
Nina Waterproofing Systems Private Ltd. (NWSP) has acquired Nina Concrete Systems Private
Ltd.'s (NCS) waterproofing division through a slump sale.PIL owns 70% of NWSP's paid-up
capital.In 1965, the waterproofing industry was launched under the NINA brand.One of the top
providers of waterproofing solutions in India is NINA.NINA is widely present in the residential,
commercial, industrial, institutional, and infrastructure sectors of the construction industry.The
company Wood Coat Private Limited was incorporated on November 20, 2015, and will be
involved in all forms of coatings for wood, including wood stains, fillers, primers, wood finishes,
etc., according to a 25 November 2015 announcement from Pidilite Industries.On November 25,
2015, Pidilite Industries revealed that it has, along with its wholly owned subsidiary Fevicol
Company Limited, incorporated a business called Wood Coat Private Limited to specialize in all
kinds of wood coatings, including wood staining.On November 30, 2015, Pidilite Industries
announced that Pidilite Lanka (Private) Limited, a step-down subsidiary of the company
incorporated in Sri Lanka, had acquired the Chemifix trademark and other brands connected to
the PVAC Adhesives business from CIC Holdings PLC, along with the business's commercial
and technical know-how.A significant conglomerate in Sri Lanka, CIC Holdings PLC is active in
a number of industries there, including chemicals, fertilizers, medicines, and agribusiness.On
April 25, 2016, Pidilite Industries made the announcement that its Board of Directors had
authorized the execution of binding contracts with INDUSTRIA CHIMICA ADRIATICA SPA
(ICA), a renowned Italian producer of wood finishes.The Company purchased 28249 equity
shares from certain other CIPY shareholders for a cash consideration of Rs. 60.49 crores in order
to get the remaining 30% shareholding in its subsidiary, Cipy Poly Urethanes Pvt. Ltd. (CIPY).
On April 22, 2021, this acquisition procedure was completed, making CIPY a fully owned
subsidiary of the Company.It purchased M/s. Nitin Enterprise's totally owned company's
operations (a Partnership Firm having two partners both of which are wholly owned subsidiaries
of Company).The Hon'ble National Company Law Tribunal Mumbai Bench authorized the
Pidilite Adhesives Private Limited (PAPL) merger plan during the fiscal year 2021–2022, and as
of the appointed date of 1 April 2022, PAPL is no longer in existence.On March 23, 2022, the
Hon'ble National Company Law Tribunal Mumbai Bench accepted the Scheme of Amalgamation
of Cipy Polyurethanes Private Limited (CIPY) with the Company, which would take effect on
April 1, 2022, the Appointed Date.CIPY is dissolved as a result of the Company having satisfied
all legal obligations with the Ministry of Corporate Affairs.The company invested in early-stage
businesses to expand its skills through its subsidiary Madhumala Ventures Pvt. Ltd.In the
FY2021–22, the Registrar of Companies closed off the two subsidiaries Pidilite C–Techos Pvt.
Ltd. and Pidilite Grupo Puma Pvt. Ltd. since they had not conducted any activity since their
creation.
3.2 Management Team

1.) Mr. Bharat Puri(Managing Director) :In 2008, Bharat joined Pidilite as an Independent
Director of the business.He oversaw the global expansion of the chocolate, gum, and candy
sectors while serving as president of Mondelez International, Zurich.

2.) Mr. Apurva Parekh(Whole Time Director) : Mr Apurva Parekh is a Chemical Engineer from
University of Wisconsin at Madison and has been working in Pidilite Industries Limited since
1995.

3.) Mr. Sudhanshu Vats(Deputy Managing Director) : In September 2021, Sudhanshu began
working with Pidilite as the deputy managing director.

4.) Mr. Salil Dalal(Chief Business Officer - Emerging India) : Salil began working for Pidilite in
July 2012.He built a strong team, tripled the distribution reach, stabilized the marketing modules,
and expanded the Rurban business in the first three years.Salil now serves as the head of the
Emerging India Division and is in charge of fostering expansion across all Pidilite Consumer and
Bazaar companies in rural markets and small towns with populations under 2 lakh.

5.) Mr. Rahul Sinha(Chief Human Resource Officer) : Rahul is a business leader with more than
22 years of sales and marketing expertise in the FMCG and BFSI industries.He is currently in
charge of Pidilite's human resources department.As the President-Sales and Marketing for the
Art & Stationery Business, Rahul joined Pidilite in 2010.He has been crucial to the company's
expansion, helping it increase by three times between 2010 and early 2017.

6.) Mr. Amol Ubhayakar(President - Corporate Affairs and Special Projects) : Amol has worked
with Pidilite for 26 of his 40 years of employment.He makes an effort to offer value-added
services that promote commercial success.He is a strategic procurement specialist that regularly
offers the most affordable options while delivering first-rate customer service and process
effectiveness.

7.) Mr. Prabhakar Jain(Chief Strategy and Business Development Officer - Pioneering
Businesses) : Since joining Pidilite in 2009 as CEO of the Fevicol Division, Prabhakar has been a
part of the company. This relationship lasted till 2014.He implemented some of the Fevicol
company's fundamental building blocks and was in charge of expanding it, including: 1. Fevicol
Champion Club Reward Program 2. Darpan and tablets for automating sales forces 3. Heatx's
debut4.

8.) Mr. Manish Modi(Chief Operating Officer - Special Projects) : Manish at Pidilite is in charge
of changing the company from being professionally run by a family to being professionally run
by a family.He collaborated closely on this with the Chairman and Promoter families.Manish has
created the leadership team at Pidilite over the course of his eight or more years there with
people who have distinguished careers in leading Indian and international corporations.

9.) Mr. Yogesh Anand(Chief Business Officer - International Operations): Yogesh has vast
FMCG commercial expertise across global and Indian Multinationals including Kraft foods,
Mondelez International, Colgate, and Pidilite. He is a business leader with innovation and
passion.

10.) Mr. Sanjay Bahadur(Chief Strategy and Business Development Officer - Construction
Chemicals) : Mr. Sanjay Bahadur, B.E. (Civil), serves as the Chief Executive Officer for Global
Constructions & Chemicals/Paints Division at Pidilite Industries Ltd. Mr. Bahadur serves as
Group CEO - CC at Pidilite Industries Limited.

11.) Mr. Nilesh Mazumdar(Chief Business Officer - Construction Chemicals Retail and Roff): The
water-proofing category's originator (Dr. Fixit), as well as tiling solutions, are currently included in
Nilesh's portfolio as Chief Executive Officer of the Construction Chemicals Division (Roff).

12.) Mr. Shree Nabar(President – Research & Development (USA)) : Shree oversees the R&D
team's efforts to achieve excellence through the implementation of cutting-edge technologies,
procedures, and infrastructure upgrades that meet or exceed international standards

13.) Mr. Pankaj Bhargava(President - Procurement): He is the President - Procurement and is

responsible for procurement strategy & operations for all businesses of Pidilite. He is driven by
the vision to be a leader who helps teams to achieve organizational goals by coaching them to
achieve their potential.

14.) Mr. Rajesh Balakrishnan(Chief Business Officer - Industrial Products Division): Rajesh’s
vision for Pidilite is to ensure that the company attains a leadership position in the industries they
serve. Prior to Pidilite, he held the position of President of South Asia and Managing Director for
DyStar in India, in 2009.

15.) Mr. Anubhav Saxena(President – R&D ): Prior joining to Pidilite, Anubhav was Global
Technology Director-Corporate R&D (CRD) at Momentive Performance Materials where he
defined CRD vision, strategy, and metrics for successful CRD organization and developed an
ecosystem for driving innovation.

16.) Mr. Pravin Digambar Chaudhari(Chief Business Officer - Pigments and IP Manufacturing
Operations): Pravin is a business leader with over 24 years of diverse experience with a
demonstrated history of success in the Consumer & Industrial goods industry. Skilled in
Operations management, Business development, Sales Management, Strategy, and Supply chain
management, he brings with him strong program and Project management experience.

17.) Mr. Vinay Subramanyam(Chief Marketing Officer): Vinay joined Pidilite in December
2021 as Chief Marketing Officer. Vinay has 20 years of experience across roles in sales,
marketing, and general management in Consumer Goods companies.

18.) Mr. Sandeep Batra(Chief Financial Officer): He served as the CFO of Pidilite from Jan
2009 to September 2015. Sandeep started his professional journey with ICI India and worked
with them for over 20 years across multiple businesses, locations, and roles.

19.) Mr. Himanshu Kapadia(Chief Business Officer – Large User Business and Services) : He
manages Dr. Fixit branded construction chemicals business for large users, Dr. CIPY range of
advanced flooring and coating solutions and waterproofing service arm Nina-Percept.

3.3 Milestones and Geographical Spread

3.3.1 Milestones

● 1959: Founded by Balvant Kalyanji Parekh.

● 1962: Madhukar B. Parekh, son of Balvant Parekh, takes over as the new Chairman and
M.D.
● 1993: valued at INR 60 crores and listed on NSE.
● 2010: Net profit tripled to Rs 460 crore from sales of Rs 3,442 crore.
● 2014: estimated at INR 19,880 billion by Economic Times as one of the top 100 brands
of 2014 The chemistry sector PIL of the Dun & Bradstreet Corporate Award 2014 went to
Pidilite. changes from a family-owned firm run professionally to a family of
professionals.
● 2015: Bharat Puri Appointed as Managing Director M B Parekh, Executive Chairman,
PIL, honored with the EY Entrepreneur of the Year Award in the Consumer Products
category.
● 2016: Awarded ‘Most Promising Company of the Year at CNBC-TV18 IBLA 2016 by
the Finance Minister & Law Minister of India.
 Fig 3: Milestones

3.3.2 Geographical Spread

1. Pidilite in Sri Lanka: In 2015, Pidilite and MacBertan founded a JV – Pidilite Lanka Pvt.
Ltd. Recently, Pidilite Lanka acquired Chemifix, a market leader in white adhesives that
offers solutions for woodworking, stationery, and industrial segments.

2. Pidilite in Bangladesh: Pidilite Industries began operations in Bangladesh 15 years ago.

The Fevicol adhesive line and Dr. Fixit waterproofing line were able to achieve
widespread recognition by earning the trust of the industry, offering sincere services, and
supplying cutting-edge solutions.

3. Pidilite in Nepal: Pidilite Industries has been present in Nepal for over 25 years. Modern
product lines, close user relationships, and a productive partnership with Adarsha
Business Pvt Ltd. have all contributed to Pidilite's success and the development of our
trademarks Fevicol and Dr. Fixit.
 4. Pidilite in Gulf: Pidilite Industries began its operation in Gulf Cooperation Council
countries in July 2003.

5. Pidilite in Egypt: Began conducting business in Egypt in 2007, and in 2009, Pidilite
Industries Egypt's factory was officially opened. It produces a wide range of goods, such
as the industrial line, Bulbond Super, Uniting, and Fevicol SH.

6. Pidilite in Kenya: Began operations in Kenya in the year 2014 Pidilite has partnered with
Crown Paints, Kenya’s No. 1 paints manufacturer and together have been successful in
creating many firsts and changing the dynamics of woodworking & now construction
chemicals market in Kenya.

7. Pidilite in Ethiopia: It Began operations in Ethiopia in 2006. Pidilite is also creating

history with Uniting, through which we have built a new category in Ethiopia. Early in
2015, Pidilite established a 100 percent subsidiary in Ethiopia, and it is now putting up a
manufacturing facility there.

In addition to these locations, Pidilite also has branches in Thailand, Brazil, Singapore, and the
United States.

3.4 Organic and Inorganic Growth

Pidilite recently acquired two waterproofing-related businesses, Percept Waterproofing Services

Limited (Percept) and Nina Waterproofing Systems Private Limited (Nina), which have since
merged to form Nina Percept Private Ltd. Pidilite hopes to gain a larger share of the highly
dynamic waterproofing market. In comparison to other nations like China and the USA, the
penetration level of waterproofing goods is currently low (15% of the overall building chemical
market), partly due to a lack of knowledge about the product and its uses. Because of the
increased category penetration, businesses like Pidilite have a tremendous opportunity to grow
their operations. Additionally, purchases like those of ICA Pidilite and CIPY Polyurethanes,
which paint floors in India, give them access to new markets. Pidilite is focusing its international
business on markets with significant room for expansion. The US, Brazil, Thailand, Egypt,
Dubai, and Bangladesh are home to the majority of the company's foreign subsidiaries.
Pidilite just inaugurated the second production in Bangladesh, where it presently holds the
market share. The business has also established a new facility in Sri Lanka. While different steps
are being made to raise sales and profitability in Brazil, the US subsidiary of Pidilite intends to
focus more on retail and e-commerce.
3.5 Directors and Independent Directors

1. Shri. M. B. Parekh(Executive Chairman) : Mr. Madhukar B. Parekh’s journey with

Pidilite commenced in 1972 Mr. Parekh’s four-decade-long journey has converted an
‘unexciting’ product into one of the country’s top brands – Fevicol. Other key brands
‘Fevikwik’, ‘Dr. Fixit and ‘M-seal’ are market leaders with high shares in their respective
segments.
2. Shri. N. K. Parekh(Vice Chairman): He has a minority stake in Pidilite, which is India's
leading maker of adhesives and sealants.
3. Shri. A. B. Parekh(Vice Chairman and Whole-Time Director): Mr. Apurva Parekh is a
Chemical Engineer from the University of Wisconsin at Madison and has been working
in Pidilite Industries Limited since 1995.
4. Shri. Bharat Puri(Managing Director) : In 2008, Bharat joined Pidilite as an Independent
Director of the business.He oversaw the global expansion of the chocolate, gum, and
candy sectors while serving as president of Mondelez International, Zurich.
5. Shri. Sanjeev Aga(Independent Director) : Mr. Aga now engages in advisory and board
roles for reputed corporates and not-for-profit organizations. He is a Director on the
Board of UFO Moviez India Ltd, Pidilite Industries Ltd, Mahindra Holidays and Resorts
India Ltd, and Vedant Fashions Pvt Ltd.
6. Shri. Uday Chander Khanna(Independent Director) : Uday Khanna was appointed the
director of Pidilite Industries Limited on 03-04-2014.
7. Smt. Meera Shankar(Independent Director) : From 2005 to 2009, she represented India as
its ambassador in Germany, and from 2009 to 2011, she represented India in the US.She
serves on the Pidilite Industries Limited board as well.She worked on Bangladesh, Sri
Lanka, and the Maldives as the Ministry of External Affairs' Under Secretary and Deputy
Secretary, giving her substantial experience in South Asia.
8. Shri. Vinod Kumar Dasari(Independent Director) : Vinod Kumar Dasari, director with
Pidilite Industries Limited, is registered with the Ministry of Corporate Affairs (MCA),
bearing DIN 00345657.
9. Shri. Piyush Pandey(Independent Director) : Mr. Pandey is a member of the Board of
Directors of Pidilite Industries Limited.He has also been appointed as a member of the
Audit Committee and Stakeholders Relationship Committee.
10. Shri. Rajeev Vasudeva(Independent Director) : Rajeev Vasudeva was appointed by
Pidilite to its Board of Directors as an Additional Director (Independent) with effect from
September 10, 2020.Rajeev has an LLB from the University of Delhi, an MBA from the
University of Michigan in Ann Arbor, Michigan, and is also a fellow member of the
Institute of Chartered Accountants of India.
11. Meher Pudumjee was appointed by Pidilite to its board of directors as an additional
director (independent) beginning on May 18, 2022.Pudumjee is the chairman of Thermax
 Ltd, a multinational business with headquarters in Pune that specializes in offering energy
and environmental solutions.
12. Shri Joseph Varghese(Whole - Time Director): In May 2022, Joseph joined Pidilite as
President, Operations.His goal for the Manufacturing and Supply chain operations is to
provide best-in-class goods and services, supported by technology and fueled by a
motivated team guided by the fundamental values of sustainability and safety.

3.6 Awards
● 2002: 2002 Cannes Awards Silver for Fevicol in the category of Household Maintenance
Products
● 2004: ABBY Silver for Fevicol in the Leisure/Homes category
● 2010: 1. Fevicol 2010 "Power Brands" & "Mastermind" Awards from CMO Council. 2.
Fevicol Pitch India's Top 50 Marketers Award. 3. Top Indian firm in the Chemicals
industry according to the 2010 Dun & Bradstreet - Rolta Corporate Awards
● 2011: 1. Dr. Fixit won the “Best Innovative Outdoor Award of 2011” from
Exchange4media. 2. Fevikwik won Bronze in Creative in OOH at Goafest. 3. Economic
Times presents Pidilite with a Silver Medal for Indian Manufacturing Excellence.
● 2012: Silver in Best Ambient Media category for an innovative ‘ free store
Fevicol
● 2013: Fevikwik. in website won a Bronze for the Best Digital Brand Website in the Abby
Awards 2013. Dr. Fixit Extensa was awarded the Silver Winner by ACETECH Design
Wall for the brand’s consistent commitment to excellence and extraordinary innovation.
● 2014: 1. Dr. Fixit won a Silver at the Outdoor Advertising Awards 2014 in the Real
Estate & Construction category for the ‘Paani Roko’ campaign in Mumbai.
2. Dr. Fixit Blueseal won The Economic Times Acetech Design Wall 2014 for
Commitment to Excellence and Extraordinary Innovation.
● 2015: Dr. Fixit's stall at Acetech 2015 won the Gold Award at Design Wall 2015
alongside winning a Bronze in Grand Stand Awards.
● 2016: 1. The Company received the ‘Most Promising Company of the Year at the
CNBC-TV18, 11th India Business Leader Awards (IBLA).
2. Fevikwik's ‘Pyaun Pyaun’ radio campaign won a Bronze at the Golden Mikes 2016 in
the Best Use of Branded Content/ Sponsorship on Radio in the Effectiveness category.

3.7 Various initiatives towards social and environmental inclusion

3.7.1 Education:
1. Shri Balvant Parekh Science City was founded by Pidilite at Bhavnagar.This Science
City, which is stocked with facilities including a conference room, computer lab, physics
 lab, and library, employs cutting-edge techniques to pique students' attention and support
the growth of their analytical skills.
2. The business aids Shree Mahuva Education Trust, which offers courses for students in the
humanities, sciences, business, and information technology.This Trust enrolls more than
1500 students each year.
3. Young ladies in Kalsar hamlet in Bhavnagar were unable to complete their education
after the seventh grade due to the inadequate educational facilities there.There are
currently plans in place to guarantee that these ladies may finish their studies and
graduate.

3.7.2 HealthCare
1. Pujya Morari Bapu's vision for Hanumant Hospital.A modernized, reduced hospital
offering the locals high-quality, reasonably priced medical care.The organization's
founding chairman, Shri B K Parekh, took on the responsibility of managing and
completing the hospital project
3.7.3 Rural Development
1. The company has made arrangements / signed MOUs with various institutes and expert
organizations, for providing technical inputs to the farmers. For the important crops of
the region such as cotton, onion, groundnut, coconut, etc., these tie-ups have helped the
farmers to adopt the modern package of practices for working towards reducing input
costs and increasing yields of these crops.
2. The company has supported activities for the conservation of water and efficient usage of
water-soluble fertilizers. A total of 512 hectares of farmland were covered under drip
irrigation. The company has also continued the well water recharging, to improve the
quality of groundwater. During the year, 221 wells were recharged across 27 villages of
Mahuva Taluka.

3.8 Key highlights of the company website

3.8.1 Product Solutions

1. Adhesives Technologies: Pidilite has been spearheading the market of adhesives with its
water-based, solvent-based, and hot melt technologies and experienced technical service
professionals working full-time to help give hassle-free solutions to customers.

2. Automotive: AutoPro is an essential brand of Pidilite and offers a range of adhesive

solutions for the automotive as well as general industries.

3. Tiles Adhesives & Grouting: Roff is a leader in the production of tile adhesive and offers
a full line of solutions for different tile applications and care.
 4. Wood Finishes and Painting: Pidilite has a wide range of solutions for the wood finish
needs of multiple categories of users and consumers. The product portfolio ranges from
basic wood polishing need to advanced wood coating solutions.

5. Mechanical, Electrical & Plumbing: The Large Users Business (PLUB) offers a broad
selection of insulation adhesives, coatings, sealants, and solvent cement especially made
for commercial and industrial industries, ranging from ultra-strong insulation adhesives
to cutting-edge low VOC and non-flammable lag coatings.

3.8.2 Services Solutions

1. Waterproofing: Pidilite’s Large User Business offers a range of products that provide
comprehensive system solutions, ensuring durable construction Large Users Business
team offers a range of customizable System Solutions under the brand name of Dr.Fixit
that addresses almost every surface such as basements, podiums, wet areas, water-bodies,
terraces, roofs, and external walls.

2. OEM: By collaborating directly with component manufacturers and providing them with
cutting-edge infrastructure, Pidilite responds to this change in customer demand. Their
partners' ongoing education and development allow for the precise application of
adhesives to a variety of components.
Chapter 4
__________________________________________________________________
Data Analysis & Interpretation

4.1 Product Profiles

The Company operates under two major business segments

● Branded Consumer & Bazaar and

● Business to Business.

Branded Consumer & Bazaar Products, such as Adhesives, Sealants, Art & Craft Materials, and
Other, Construction and Paint Chemicals are covered under Branded Consumer & Bazaar
segment. These products are widely used by carpenters, painters, plumbers, mechanics,
households, students, Offices, etc.

The revenue Distribution of the different segments of the sector is:

● Branded Consumer & Bazaar segment contributed 79.9%

● Construction and Paint Chemicals contributed 19.2%
● 1.4% Others

Business to Business segment covers products, such as Industrial Adhesives, Industrial Resins,
Construction Chemicals (Projects), Organic Pigments, Pigment Preparations, etc. and caters to
various industries like packaging, joineries, textiles, paints, printing inks, paper, leather, etc

Pidilite Industrial Products has multiple business segments catering to a wide variety of
applications such as
1. Industrial Resins
2. Leather Chemicals
3. Industrial Adhesives
4. Footwears Adhesive
5. Industrial Bonding Solutions
6. Maintenance, Repair, and Overhaul Solutions
7. Textile Chemicals
8. Paper Chemicals
4.2 Brands of the company

The Top Brands of Pidilite Incorporate are:

1. Fevicol - Pidilite’s biggest bond is through the Fevicol family of products. Fevicol has
become a household name that is today synonymous with adhesives. The brand has
introduced many innovative products which have transformed the way the carpentry trade
operates in India.

2. Fevicol MR - Fevicol MR’s biggest strength is its high bonding strength. It is used to
bond a variety of substrates like cardboard, paper, polystyrene, wood, and other material.
Fevicol is available in over 5 lakh outlets in India, and on average, 4 units of Fevicol MR
are sold per second!

3. Dr. Fixit - Dr.Fixit offers comprehensive system solutions for Waterproofing a new home
or Repairing an existing one. The product range includes a wide variety of new
construction and repair waterproofing solutions for all critical surface areas like Roof,
External Walls, Structure, Foundations, Internal Walls, Bathrooms, and Water Bodies.
This expert line of solutions, supported by wide retail availability, an on-ground technical
team, and an easy-to-reach brand helpline, aims to deliver on the brand vision of Creating
a Leak-free and Damp-free India

4. Fevikwik - This adhesive glue works within seconds to repair broken items, regardless of
what material it is, metal, wood, plastic, or paper. Fevikwik is also a perfect partner for
all home DIY and arts and crafts projects. The best part is, this instant bonding adhesive
even works wonders on expensive items like jewelry, antiques, and electronics. Little
wonder that Fevikwik is the country’s largest-selling instant adhesive

5. M-Seal - M-seal is a multi-purpose sealant with 4 main applications – sealing, joining,

fixing, and building. Its versatility and ease of application make it commonly used across
multiple industry segments, as well as households (DIY) who can use it to mend broken
articles, fill gaps, and cracks and plug leaks in pipes and joints.

6. Fevistick - There was a time when adhesives were only available in liquid form and
paper-to-paper sticking meant sticky fingers and an overall messy experience. Pidilite,
being the pioneer in the adhesive segment, addressed this issue 20 years back through the
launch of Fevistik.

7. Fevicrylic - Fevicryl, one of India’s biggest art & craft brands, aims to rekindle this
passion with a wide range of innovative products that include colors and accessories.
 Fevicryl has been working with women who have a passion for art and have helped
convert some of them into successful professionals, or as Pidilite likes to call them,
“artepreneurs”.

8. Hobby Ideas - Pidilite launched Hobby Ideas in February 2002 as India’s first chain of
art, craft, and hobby stores offering over 2500 products, expert advice, and exciting
workshops.

4.3 Advertisement and Branding Strategies

Pidilite as a brand has established itself as a major player in the market and even if it doesn’t
focus on branding and Advertisements it still remains the best player in the market. People have
considered fevicol and adhesives as synonyms and always go for Fevicol. Pidilite has taken
many years and many efforts to create this image in the mind of consumers. They have carried
out various campaigns few of them are:
1. The Kite Flying Campaigns - Pidilite invited carpenters who are the major user of
adhesives from different parts of the world and organized kite flying competitions. These
kites were made by the carpenters and they had a kite flying competition.
2. The Carpenter's Magazine: The carpenter always had a problem with how to create new
designs in furniture to solve this issue Pidilite started a magazine that gave different
furniture ideas to carpenters. Things like these engrave Fevicol and Pidilite into
Carpenter's mind and even when asked for a cheaper product they would still go for
Fevicol as they didn’t trust any other brand.

Pidilite was always famous for its sarcastic and innovative advertisements few of the most iconic
advertisements are:

1. Ad for Fevicol Marine: To show that the Fevicol marine actually doesn't let water break
the bond. They actually threw furniture in the water during this ad. These ads
undoubtedly gathered much attention and led to an increase in sales of the Fevicol Marine

2. The Unbreakable Egg - The advertisement was iconic and sarcastic, where the egg
doesn’t break because the hen which gave birth to the egg was eating from the Fevicol
bottle. Even the most fragile thing can become unbreakable with the best synthetic resin
adhesive. This advertisement won the hearts and minds of millions of viewers through the
TV ad.
Social Media Marketing

Pidilite is active on all the social media pages, the social media pages are well maintained and it
also has a nice amount of audience. Most of the social media content is for grown-up audiences.
The most followed social media account of Pidilite is Facebook overall. They also share a lot of
interesting content through YouTube as well. They mostly post content based on family, house,
etc to show the importance of strong construction chemicals.
LinkedIn, Twitter, Youtube, Facebook, Instagram, and even some other platforms like TikTok
allow marketers to connect and engage potential customers where they are. Marketers can
engage their audience with a solid social media strategy and the ability to offer interesting
content.

What’s Unique in Pidilite’s Marketing?

Pidilite is a successful company with a unique marketing strategy. They market their products
with a socially relevant topic which helps them to beat their competitors in the market. Overall,
the marketing strategy of Pidilite Industries is good but In my opinion, the Pidilite industry
should invest more in its marketing strategy than its ventures.
As we all know, digital marketing has taken a drastic change because of pandemics that affected
every business. As per digital marketing statistics, about 60% of the population of world uses the
internet. It rose by 20% in the past two years due to the pandemic with many businesses going
online. An established company’s image is everything. The right campaign strategies can make
or break a company’s brand image. Through digital marketing, effective campaigns can be
designed and the scope of fixing any glitches immediately is there.

4.4 Shareholding Patterns

Table 1: Shareholding Patterns Fig 4: ShareHolding Patterns

The Shareholding Pattern page of Pidilite Industries Ltd. presents the Promoter's holding, FII's
holding, DII's Holding, and Shareholding by the general public, etc. The table shows the highest
shareholding of Promoters. The stake of 68.69% is the highest stake representing the high
confidence and reliability of the company. Too high or too low Promoters Stak can be harmful to
a company. Too high promoter stake in a company’s capital structure is also not favorable, while
a very low stake can hurt investors’ interest. A diversified holding is thus considered good for
investors. In the last 6 months, promoter holding in the company has almost stayed constant.
Foreign Institutions have a growth of 11.13%. A moderate Foreign Institution shows a good
balance of the company and a prospect for future growth. In the last 3 months, the foreign
institutional holding of the company has almost stayed constant. The general public share is seen
to be at 9.665 and that of the Central Govt to directly 0 as this is a private company. The least
shares are held by the Financial Institutions at 3.51% and Foreign Promoter at 1.25%.

4.5 Financial Trends

Pidilite Industries Limited reported earnings results for the second quarter and six months that
ended September 30, 2022. For the second quarter, the company reported sales were INR
30,111.5 million compared to INR 26,263.5 million a year ago. Revenue was INR 30,221.3
million compared to INR 26,402.5 million a year ago. Net income was INR 3,324.4 million
compared to INR 3,746.5 million a year ago. Basic earnings per share from continuing
operations was INR 6.54 compared to INR 7.37 a year ago. Diluted earnings per share from
continuing operations was INR 6.54 compared to INR 7.37 a year ago. For the six months, sales
were INR 61,122.6 million compared to INR 45,631.4 million a year ago. Revenue was INR
61,339.2 million compared to INR 45,831.6 million a year ago. Net income was INR 6,860.5
million compared to INR 5,947.2 million a year ago. Basic earnings per share from continuing
operations was INR 13.5 compared to INR 11.7 a year ago. Diluted earnings per share from
continuing operations was INR 13.49 compared to INR 11.69 a year ago.

Performance by Industry Segments

The Company operates under two major business segments i.e. Branded Consumer & Bazaar and
Business to Business. The main revenue generator is the Consumer and Bazar Product Segments.
Its revenue share is at 79.6%of the sales of the Company and grew by 30.5% with strong volume
and mix growth of 20.2% Adhesives & Sealants category includes adhesives, sealants, and tapes.
This category contributed 53.4% of the sales of the Company and grew by 31.1%. Construction
and Paint Chemicals contributed 20.3% of the sales of the Company and grew by 35.3%. Art &
Craft Materials etc. contributed 5.9% of the sales of the Company and grew by 12.0%. Business
to Business segment contributed 19.7% of the sales of the Company and grew by 45.3% with
volume and mix growth of 20.2%. Industrial Adhesives include adhesives used in packaging,
footwear, cigarette, the automotive industry, and joinery. This category contributed to 6.5% of
sales of the Company and grew by 50.7%. Industrial Resins, Construction Chemicals (Projects),
etc. contributed 7.2% of the sales of the Company and grew by 51.0%. Pigments and
Preparations contributed 6.0% of the sales of the Company and grew by 34.0%.

Fig 5: Performance by Industry Segments

4.5.1 Last 5 years Data Analysis

Income Data

Table 1: Last 5 years Income Data

Pidilite Industries made a net Sale of Rs 99210(Cr) which is way more than the Net sales of Rs
59,381. This accounts for a growth of 67%. And the total revenue has grown from Rs. 60,865 to
Rs 99,573. The revenue has grown by 63.6%. So the EBIDTA or the Gross Profit in the year
2022 is Rs 18,473 which has grown from Rs, 13,412 which is a growth of 37.77%, whereas the
gross profit margin has almost remained constant nearly about 20%. The highest gross profit
margin that has been encountered in the last 5 years is 23.0% in the year 2021. The main reason
for this could be the opening of markets after Covid 19. The Gross Profit Margin in the year
2018 was about 22.6% and currently has depreciated to 18.6%. The reason behind this could be
the increase in the tax from Rs 3,927 to Rs 4,070 which accounts for a change of 3.641% which
might not seem significant but can account for a huge change in The Gross Profit. Finally, the
Net Profit margins have also declined from 16.2% to 12% which is a change of 25.92%. The
company overall has grown in various sectors and we can clearly see the Increases in Net Sales

Cash Flow Data

Table 2: Last 5 years Industry Cash FlowData

The Cash Flow shows 3 main sources. Operations, Investments, and Financial Activity. The
highest amount has been consistently coming from the operations and has increased from Rs
7,964 in March 2018 to Rs 9554 in March 2022. This accounts for a growth of Rs 1590 or
19.96%. The Investments and Financial Activity section shows a negative cash flow from the
year 2019 to 20222 this may be due to heavy investment expenditure, but this is not always an
indicator of poor performance, because it may be leading to high capital growth. The
Investments have been reduced from Rs 393 to -5581. That is the change in expenditure and
income comes out to be Rs -5581. The Financial Activity shows a somewhat similar trend but
the expenses have been reduced from Rs-7898 to -4680, that is a change of 40%. The net cash
flow comes out to be Rs -707 on March 22.

Equity Share Data

The equity share data here starts with the highest and lowest value of the share in a particular
year. In the year 2022, the highest value of the share reached about Rs 2,765 which was also
the highest in the last 5 years, whereas the lowest value was still at 1756 which is the highest in
the 5 years. This tells us that the share value has significantly grown in the last 5 years. The
sales per share in the year 2022 is 195.2 which when multiplied by the total number of shares
that is 508928950 comes out to be 99,573 which is the revenue of the company. If we calculate
the CAGR from the highest values of the share it comes out to be 23.34% . The shares have
grown from 116.9 to 195.2 which is a growth of 78.3 which accounts for 66.98%. Whereas the
earnings per share have grown from Rs 18.9 to Rs. 23.5 that is a growth of 24.33%. Today
Pidilite stands at the Market Capitalization of Rs 1148783. The market cap has grown by
171.36%.

Table 3: Last 5 years Equity Share Data

Balance Sheet

Fig 6: Balance Sheet for the last 2 years.

 Fig 7: Last 5-Year Performance by Business Segments

For the last 5 years the company has shown steady growth. Their shareholders have earned a
27% CAGR over the last five years. The major business segments i.e. Branded Consumer &
Bazaar and Business to Business have shown consistent growth of 80% and 20% over the last 5
years.The Company’s Net Worth (Equity capital + Reserves) has grown from 3,564 crores as on
31st March 2018 to 6,417 crores as of 31st March 2022, giving a Compounded Annual Growth
Rate (CAGR) of 15.8%. The market capitalization of the Company on 31st March 2022 was
1,24,803 crores and has grown at a CAGR of 30.66% since the IPO in 1993. The dividend
payout amount has grown at a CAGR of 13.65% during the last 5 years

4.5.2 Stock Price Pattern in the Last 5 years

Fig 8: NSE Price Data for last 5 years

4.6 Ratios

❖ Solvency Ratios
● Current Ratio: The company's current ratio deteriorated and stood at 2.3x
during FY20, from 2.8x during FY19. The current ratio measures the
company's ability to pay short-term and long-term obligations.
● Interest Coverage Ratio: The company's interest coverage ratio deteriorated
and stood at 44.7x during FY20, from 52.3x during FY19. The interest
coverage ratio of a company states how easily a company can pay its interest
expense on outstanding debt. A higher ratio is preferable.

❖ Profitability Ratios
● Return on Equity (ROE): The ROE for the company improved and stood at 25.2%
during FY20, from 22.3% during FY20. The ROE measures the ability of a firm
to generate profits from its shareholder's capital in the company.
Return on Capital Employed (ROCE): The ROCE for the company improved and
stood at 33.6% during FY20, from 32.9% during FY19. The ROCE measures the
ability of a firm to generate profits from its total capital (shareholder capital plus
debt capital) employed in the company.
● Return on Assets (ROA): The ROA of the company improved and stood at 17.7%
during FY20, from 16.1% during FY19. The ROA measures how efficiently the
company uses its assets to generate earnings.

Fig 9: Debt Equity Ratio Fig 10: Current Ratio

4.7 Peer Comparison

Table 7: Peer Comparison

Pidilite has always been a market leader the above table shows different metrics of comparison
for different players in the adhesive market. After Pidilite, SRF Limited is one of the good
companies in the industry. SRF has a current market price of Rs 2389.50 (7th Dec 2022). It has a
P/E ratio of 32.18 which is way less than that of Pidilite. In fact, no other company gives as
much P/E Ratio as Pidilite, that is one of the reasons it has been the market leader for so long.
Other factors Market Cap, Div Yid, etc are also greater than that of the other companies. Only
Solar Industries has a current market price greater than Pidilite. It stands at the price of
4013.00Rs. Pidilite has always been
Chapter 5
__________________________________________________________________
Observations and Findings

The company has not shied away from investing in developing the brands under its portfolio.
The company has always operated with a long-term view and it invested around INR4.8bn over
the last 5 years in A&P, which is a sign in a segment where the company already has a strong
market presence. The company has deliberately made efforts to increase the interaction with the
end customers specifically the carpenters who are the major users of the company’s
Fevicol is the largest brand in the adhesive and sealants segment and the company has
maintained this leadership. It was the third most trusted brand in the household care segment.
Pidilite also has a wide range of products in the construction and paint segment which is a
high-growth potential segment. Being one of the first players in this category, Pidilite has the
advantage to leverage its position to build a long-term business.

Similarly, the company has given due respect to the art materials and stationary segment and has
a good range of products to cater to this category. Products such as Rangeela and Fevigum etc.
are quite popular among users, which is positive for the long-term perspective.

5.1 OUTLOOK ON OPPORTUNITIES, THREATS, RISKS, AND

CONCERNS

Currently, the world is witnessing high inflation mainly due to continuing global supply chain
disruptions amid the pandemic, and geo-political tensions including the Ukraine war. The current
trend of inflation impacting both consumer sentiment and margins are expected to continue in the
near term. The Company has also put in place a number of measures to mitigate the impact of an
uncertain macro environment through appropriate pricing and cost control measures without
disrupting market share. The Company is confident to navigate the current uncertain operating
environment.

The Indian economy provides a large opportunity for the Company to market its differentiated
products. The additional spending in Government programs like rural employment schemes and
higher capex spending emphasizes the focus on infrastructure and increasing disposable income
in the hands of common people. This will act as a catalyst for the growth of the economy which
will eventually create demand for the Company’s products. Further, the home improvement area
offers significant opportunities for growth given the focus on affordable housing, new
construction as well as renovation. Slower growth of the Indian economy and stress in sectors
such as construction could impact the performance of the Company. While there are near-term
concerns around heightened inflation and its consequent impact on market growth, the Company
is confident of the medium to long-term prospects of the home improvement sector and remains
focused on delivering consistent and profitable volume-led growth.

The macroeconomic condition in Sri Lanka remains uncertain and poses downside risks to the
business. Business disruptions as a result of the resurgence in COVID-19 cases may impact the
performance of the Company and its subsidiaries. The ongoing inflationary trend also poses risk
to both consumer demand and the profitability of the Company

The Co. focuses on digital initiatives, innovation, and establishing a supply chain that is resilient
and agile. Owing to such efforts, Consumer and Bazaar and Business-to-Business segments
reported volume growth of more than 20% during FY22
Chapter 6
__________________________________________________________________
Chapter 6 Suggestions

6.1 Suggestion on current stock conditions

We have analyzed a few financial reports till now and understand from them we have a Market
Capitalization of 1413071.11 Cr, Enterprise Value of 141292.80 Cr. 50.83Cr Total Shares. A P/E
ratio of 107.79, P/B Ratio of 21.7, and Face Value of Rs1. Div yield of 0.37%. Book Value of Rs
128.12 Cash of 119.31 Cr. A debt of about 105 Cr. Promote Holding of 69.94% EPS of 25.79 Rs
and SAles Growth of 34.17RS, ROE of 21.29%, and ROCE of 27.25%. Net Sales at Rs 2,715.20
crore in September 2022 up 22.67% from Rs. 2,213.40 crores in September 2021. Quarterly Net
Profit at Rs. 336.88 crores in September 2022 down 0.75% from Rs. 339.41 crores in September
2021. EBITDA stands at Rs. 492.40 crores in September 2022 down 0.6% from Rs. 495.39
crores in September 2021. Pidilite Ind EPS has decreased to Rs. 6.63 in September 2022 from
Rs. 6.68 in September 2021. Pidilite Ind shares closed at 2,652.25 on November 09, 2022 (NSE)
and have given 20.59% returns over the last 6 months and 10.88% over the last 12 months.

Currently, the market share price of Pidilite is all-time high it has never been this high in at least
the last 5 years. The share price has increased by 49.45% in the last 1 year and by 18.44% in the
last 5 years. Even all the other parameters such as the P/E ratio and EPS are the highest at the
value of 107.79 and 25.79. The high ROCE value indicates that a larger chunk of profits can be
invested back into the company for the benefit of shareholders.

6.2 Assumptions and predictions.

1. Net Sales Prediction

We have data for the last 5 years suppose we need to predict the data for the upcoming year. Let's
try to predict Net Sales for the Year 2022 based on the growth rate for the last year.

𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠(𝐶𝑢𝑟𝑟𝑒𝑛𝑡) − 𝑁𝑒𝑡 𝑆𝐴𝑙𝑒𝑠 (𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠)

To calculate growth percent for the last 1 year = 𝑁𝑒𝑡 𝑆𝐴𝑙𝑒𝑠(𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠)

In our case the percentage comes out to be 36.04 % so predicting the sale of next year we have
𝑥 − 99210
99210
× 100 = 36. 04 This comes out to be Rs 134965.432.

2. Share Price Prediction for next year(high value)

To calculate the share price we are using average methods. Calculate the average P/E ratio and
average EPS Ratio

P/E value for the next year = Avg of P/E value of last 5 years
44.0+59.0+36.6+69.0+96.1
= 5
= 66.34

EPS value for the next year = Avg of EPS value of last 5 years
18.9+18.2+22.0+22.1+23.5
= 5
= 20.94

Predicted Share price = P/E * EPS = 20.94 x 66.34

= 1389.1596

Similarly if we do above steps using the maximum approach that is taking the maximum P/E
ratio and maximum EPS the Share price comes out to be 2258.35.

According to us I think the company is very steady and can is consistently growing even the
share price is consistently growing. we think one should definitely buy this stock for a long run.
Chapter 7
__________________________________________________________________
Conclusion

7.1 Overall learning experience

7.2 Future work on the same topic

BIBLIOGRAPHY:

1. Pidilite official Website:

https://pidilite.com/
2. Annual Rpeport:
https://pidilite.com/wp-content/uploads/2022/07/Annual-Report-2021-2022.pdf
3. Analyst Meet Report: https://pidilite.com/quarterly-reports/
4. Case Study: https://tealfeed.com/case-study-pidilite-9fetk
5. Case Study:
https://tradebrains.in/case-study-pidilite-industries/#:~:text=Few%20of%20the%20popul
ar%20products,one%20product%2C%20Fevicol%20in%201959.
6. Introduction to the Industry:
https://www.fortunebusinessinsights.com/industry-reports/adhesives-and-sealants-market
-101715
7. Brands: https://pidilite.com/our-brands/
8. Advertisements: https://www.mbaskool.com/marketing-mix/products/17003-pidilite.html
9. Share Holding Patterns:
https://economictimes.indiatimes.com/pidilite-industries-ltd/shareholding/companyid-104
60. cms
10. Understanding Shareholding Pattern:
https://groww.in/stocks/pidilite-industries-ltd/share-holding