Pidilite Industries

CMP –

About Pidilite: Market Capitalization (in Rs. Crore)

Pidilite is a consumer centric company committed to EPS
quality and innovation. For decades, Pidilite have
PE
been pioneering product for small to large
companies, at home and industry, which have been 52-week H/L
forged strong bond with people.
No. of shares outstanding
From Adhesives, sealants, Waterproofing solutions
and Construction Chemicals to arts & crafts,
industry resins, Polymers and more product
portfolio. Today, Pidilite brands are trusted by
household and industry names and market leader in
Adhesives. Pidilite has its subsiadry all over the Shareholding Patt ern%
world countries include USA, Sri Lanka, Thailand,
7.9
Bangladesh, UAE, Italy. 11.5

A robust and growing network makes Pidilite 10.68

product accessible across demographic and 69.02

geographic

Brands are Fevicol, Fevicol MR, Dr.Fixit Promoter

Bodies corporate& Indian Public
waterproofing, Fevikwik, M-seal and many more.
FII's & FPI's
UTI & mutual funds

Shareholding Pattern:

 In shareholding pattern, we can see that around 69.02%, Shareownership is by promoter in

which holding more than 5% are M.B. Parekh (Executive chairman of Pidilite) holds 10.39%,
 Narendrakumar Parekh (vice chairman) holds 10.69%, Ajay Parekh (whole-Time Director) holds
9.34%, Sushilkumar Parekh holds 8.15%, Devkalyan sales Pvt Ltd. Holds 5.16% and remaining by
others Parekh Family Member and another promoter group.
 Bodies coporate include 0.07% stake by government of India and

Management Discussion:

 During the first half of FY 2020-21, economic activity may remain subdued due to a number of
factors, such as social distancing, subdued demand and labour shortage. Recovery in economic
activity is expected to begin in second half of FY 2020-21 depending on how effectively the
country is able to contain the virus.
 Continued slowdown in the construction industry and economic growth can negatively impact
sales growth for current year.
 While major subsidiaries in India are taking initiatives to improve margins and achieve
consistent sales growth in their respective businesses, the impact of the economic growth
environment does pose a risk to these plans. The Company’s major international subsidiaries are
in Bangladesh, Sri Lanka, USA, Brazil, Thailand, Egypt and Dubai. Various initiatives are being
taken to increase sales and market share.
 The US Subsidiary plan to maintain its focus on Retail and E-commerce. The Brazil subsidiary
taking initiative for continued growth in sales and margins

Outlook on Risks and Opportunities:

The Indian economy provides a large opportunity to the Company to market its differentiated
products. Slower growth of the Indian economy and stress in sectors, such as construction could impact
the performance of the Company. Overseas subsidiaries, by virtue of their relatively smaller size, remain
vulnerable to the political and economic uncertainties of their respective countries. COVID-19 related
slowdown may impact the performance of the Company and its subsidiaries.
Investments In subsidiary:

 During the year, Pidilite Invested of Rs.146.18 Crores (pervious year Rs.61.04 Crores) was made
in subsidiary of this Rs.127.08 Crores was invested in Domestic subsidiary and Rs.19.10 crores in
overseas subsidiary
 Domestic Investment were in Madhumala ventures Pvt. Ltd. amounting Rs.126.47 crores and
newly incorporate subsidiary namely Pidilite Litokol Pvt. Ltd. (RS.0.60 Crores) and Pidilite Grupo
Puma manufacturing Ltd. (Rs.0.01 Crores)
 Overseas Investment were in Pidilite International Pte Ltd. Singapore (Rs. 18.03 crores). Pidilite
Chemical PLC, Ethiopia (Rs. 0.75 Crores) and Pidilite Industries Egypt SAE (Rs. 0.32 crores).
Financial Performance:
 5 year performance in Crores
7,500.00
6,500.00
5,500.00
4,500.00
3,500.00
2,500.00
1,500.00
500.00
FY16 FY17 FY18 FY19 FY20
Sales 5701.6 6062.31 6218.76 7077.96 7294.47
EBITDA 1513.91 1705.31 1481.57 1368.21 1576.02
PAT 807.23000000 863.25000000 966.09 928.39 1122.05
0001 0001
Sales EBITDA PAT

The company has no Pledge share in

promoter share as at 31st September,2020

 Pidilite Industry segment is divided

into Consumer & Bazaar (holds
79.9% of product segment) where
pidilite manufacture goods and
service for Retail Market and
Business to Business (hold 18.7% of
product segment) where all trade
taken between business to business
which include consumer like leather
Cloths manufacture, Construction
business, Footwear manufacturer.
And remaining 1.4% comprises of
manufacturing and sale of Speciality Acetates, raw material and etc
 The sales have shown a positive growth, slowly and steadily sales no. is increasing every year in
which standalone sales is Rs. 6332.59 and remaining Rs. 961.88 crores are from international
subsidiary and joint venture which exceptional item of Rs.55.19 crores.
 The Material cost has also been decreased from 2016 i.e. 50.03% to 46.4% in 2020 and
operational cost is at 18.5% of revenue
 Pidilite has monopoly with Market share of 52.6% in Adhesive segment.

Performance of Overseas Subsidiary:

 Pidilite USA Inc.

 Pidilite USA Inc.is fully owned Subsidiary has reported sales Of Rs.113.72 crores i.e 8.3 %
from last year and EBITDA has been negative as compare to last year of Rs.1.36 Crores.
 Pidilite Lanka (Pvt) Ltd.
PIdilite Lanka is subsidiary in Sri Lanka in which Parent Pidilite holds 76%. Pilidte Lanka
reported sales of Rs.41.46 crores which increased by 35.04% as compared to previous
year and EBITDA of Rs. 2.91 crores due to lower material cost and benefits of local
manufacturing
 Pidilite Speciality Chemicals Bangladesh Pvt Ltd.
Pidilite Bangladesh is wholly owned subsidiary and its reported Sales of Rs.119.19 Crores
and which EBITDA of Rs. 18.38 crores and Pidilite Bangladesh reported good sales
growth with profitability and second manufacturing plant at Bhaluka was commissioned
during the year.
 Pulvitec Brazil Ltd.:
It’s a Subsidiary in Brazil is wholly owned subsidiary which has reported moderate sales
growth and EBITDA of Rs.1.98 crores on account of margin improvement and cost saving
initiatives.
 Pidilite MEA Chemicals LLC (UAE)
Pidilite MEA which control the operation of UAE and it has reported reduction in EBITDA
losses due to higher sales, margin improvement and cost saving initiatives.

Financial Analysis
Financial Review Consolidated: (in Crores Rs.)

FY 16-17 FY17-18 FY18-19 FY19-20

Sales 6,062.31 6,218.76 7,077.96 7,294.47
Growth% 3% 12% 3%
EBITDA 1,705.31 1,481.57 1,368.21 1,576.02
Growth% -15% -8.2% 13.18%
PAT before Exceptional 863.25 966.09 910.37 1,066.86
Growth% 10% -6.12% 14%
PAT 863.25 966.09 928.39 1,122.05
Growth% 10% -4.06% 17.25%
CFO 793.75 796.43 844.78 1279.55
Enterprise value 34,540 45,412 62,269 66,564

There is a healthy growth over the year in sales and EBITDA also increase due to reduction in operating
cost over the years.

 PAT also increase as compare to last year i.e. 1,122.05 crore rupees and PAT before exceptional
item is decrease due to exceptional item cost of Rs. 55.19 Crores as compare to previous year
of Exceptional item Rs. 18.02 crores