Frequently asked questions
Is Pidilite Industries a buy at current prices?
DalalBytes rates Pidilite Industries Selective Positive at 73/100. FY26 consolidated revenue rose 11.1% to Rs 14,601 crore with PAT up 17.9% to Rs 2,471 crore, free cash flow was Rs 2,239 crore, borrowings were just Rs 417 crore against Rs 4,350 crore of investments, and Q1 FY27 net sales grew 21.3% on 11.3% volume growth. The selective part is price: about 57x trailing earnings (about 62x FY26 EPS), so the base case to FY29 is a high-single-digit annual return, not a re-rating.
What are Pidilite Industries' FY2029 price targets?
DalalBytes' FY2029 targets for Pidilite Industries are bear Rs 1,250, base Rs 1,860, and bull Rs 2,375, from a Rs 1,499.50 reference price (NSE close, October 14, 2026). The scenarios build on FY26 EPS of Rs 24.06. Bear: 9% PAT CAGR, FY29 EPS of about Rs 31, 40x exit. Base: 14% CAGR, EPS of about Rs 36, 52x. Bull: 18% CAGR, EPS of about Rs 40, 60x, with waterproofing and tile-care penetration compounding.
What is the verdict on Pidilite Industries?
The business quality grades in the mid-80s: close to 70% share in white glue, ROE of 23.9%, ROCE of 31.0%, a debt-free balance sheet, and free cash flow conversion near 91% of PAT. Four deductions bring it to 73: the 57x multiple, a margin base flattered by a completed input-cost cycle (operating margin was 17% in FY23 and 24% in FY26), the strongest competitive attack in the company's history on its growth categories, and three-year revenue compounding of only about 7% despite the PAT surge. Below Rs 1,250 the same business would grade Positive outright.
How did Pidilite Industries start?
Balvant Parekh founded the business in 1959 after years that included work as a peon and warehouse hand at a Mumbai timber and trading firm, where he watched carpenters struggle with animal-fat glues that had to be cooked before use. Fevicol, a ready-to-use white synthetic resin adhesive, was sold to carpenters first rather than to shop shelves, making the craftsman the brand's salesman in every home he served. His son Madhukar, now Executive Chairman, built the consumer branding that turned Fevicol into the generic word for glue in much of India.
What does Pidilite Industries sell?
Adhesives and sealants (Fevicol, Fevikwik, Fevistik, M-Seal, Araldite), construction chemicals and waterproofing (Dr. Fixit), tile and stone care (Roff), art and craft materials (Fevicryl, Hobby Ideas), and industrial adhesives, resins and pigments. Consumer and Bazaar delivered standalone FY26 revenue of Rs 10,837 crore at a 31.2% EBIT margin; Business to Business delivered Rs 2,800 crore at 18.3%. Management runs the portfolio in core, growth and pioneer layers, aiming to move from about 80% core a decade ago toward roughly half core.
What do Pidilite Industries' financials show?
Consolidated revenue rose from Rs 9,921 crore in FY22 to Rs 14,601 crore in FY26, operating profit from Rs 1,856 crore to Rs 3,521 crore (margin 19% to 24%, dipping to 17% in FY23 when VAM spiked), and PAT from Rs 1,207 crore to Rs 2,471 crore, with EPS of Rs 24.06 post the 1:1 bonus of September 2025. Q1 FY27 was the strongest quarter in the series: net sales of Rs 4,541 crore, up 21.3%, on volume growth of 11.3%, EBITDA of Rs 1,194 crore and PAT of Rs 884 crore. Free cash flow has been positive every year since FY15.
What is the VAM risk?
Vinyl acetate monomer is the principal feedstock for Fevicol's chemistry, and India imports nearly all of it. When VAM prices spiked into FY23, Pidilite's operating margin fell to 17% despite price increases; when VAM corrected, margins rebuilt to 24% by FY26. Q1 FY27 gross margin already contracted again on West Asia-linked input inflation, and broker trackers show VAM up about 26% quarter on quarter. Pricing power cushions the cycle with a lag; it does not remove it. Asian Paints is also building domestic VAM and VAE capacity at Dahej for about Rs 2,100 crore, which will redraw the input map over FY27 and FY28.
Who runs Pidilite Industries, and is governance clean?
The Parekh family holds 69.24% (June 2026) with no pledging reported, and M. B. Parekh is Executive Chairman. Bharat Puri ran the company for a decade to April 2025 and remains on the board. Succession was planned years ahead: Sudhanshu Vats joined as Deputy Managing Director in 2021 and took over as Managing Director on April 10, 2025, with Kavinder Singh as Joint Managing Director. The dividend payout has held near 48%, and August 2025 brought a Rs 10 special interim dividend and a 1:1 bonus marking the founder's 101st birth anniversary. The open items are time (the new pair is eighteen months in) and a CFO transition begun in October 2026.
What is Pidilite Industries worth?
At Rs 1,499.50: P/E of about 57x trailing earnings and about 62x FY26 EPS, P/B of 14.1x, dividend yield of 0.76%, market capitalisation of about Rs 1,52,172 crore, and a price about 12% below the 52-week high of Rs 1,708 (range Rs 1,259 to 1,708). The multiple is below the stock's own 10-year median near 71x but high in absolute terms; Asian Paints trades near 47x and Berger Paints near 45x. FY2029 scenarios: bear Rs 1,250 (9% PAT CAGR, 40x), base Rs 1,860 (14% CAGR, about Rs 36 EPS, 52x), bull Rs 2,375 (18% CAGR, 60x). The base case is about 24% above the reference price plus dividends: a fair price for a great business.
What are the key risks for Pidilite Industries?
VAM and crude-linked input costs first, with margins hostage to an imported commodity. Then valuation: at 57x, a dull year de-rates both earnings and multiple. Then competition on the growth frontier, where paint majors with bigger dealer networks push waterproofing and Asian Paints integrates upstream into VAM. Then B2B and export cyclicality (export volume fell 8.4% in Q1 FY27 on West Asia demand), a sub-scale international business (overseas subsidiary sales of Rs 341 crore, up 5.5%), and a recent leadership transition still to be tested by a full input cycle.
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