Pidilite Shares are gaining in popularity as investors look for stocks with good potential for growth. The company has a number of projects in the pipeline that could result in big profits for shareholders.
Pidilite Shares in Focus
Pidilite Share Price is the share price of Pidilite Technologies Ltd. Pidilite is a holding company that manufactures and supplies adhesives, sealants and construction chemicals. Pidilite’s products are used in a wide range of industries, including automotive, electronics, packaging, construction and consumer durables. Pidilite was founded in 1971 and is headquartered in Mumbai, India.
Pidilite went public in 1995 and its shares are listed on the BSE and NSE. As of October 2020, Pidilite had a market capitalization of ₹ 406 billion (US$5.6 billion). Pidilite is India’s largest adhesives manufacturer and one of the country’s largest chemical companies. Pidilite has over 5,000 employees and operates through nine manufacturing plants in India, four overseas subsidiaries and 36 branch offices. Pidilite’s products include adhesives, sealants, paints, coatings, jointing compounds and construction chemicals.
Pidilite also manufactures art materials under the brand name Fevicryl. Pidilite’s products are sold under the following brand names: Fevicol, Fevikwik, Dr. Fixit, M-seal,Polyfilla andHeavy Duty Adhesive; Super Glue; Polycrol; Cementone; Bergeaud; Roff; Safecote; Perkins Pickling Preserver; SBR Bonding Compound and Bostik Findley Construction Adhesives. Pidilite has a wide distribution network with over 1 million outlets across India.
Pidilite also exports to over 100 countries. Pidilite was founded by Vasantlal Gandhi in 1971 as a small trade business with an initial investment of ₹50,000 (US$700). The company started out by selling synthetic resin adhesives under the brand name “Fevicol”, which quickly became popular among carpenters and furniture makers.
In 1974, Pidilite launched its flagship product “Fevikwik”, which remains the company’s best-selling product to date. Pidilite went public in 1995 with an initial public offering of ₹120 million (US$1.7 million).
The IPO was well received by investors and the shares were oversubscribed by 34 times. Pidilite’s share price has since outperformed the BSE Sensex index by more than 10 times since inception. As of October 2020, Pidilite had a market capitalization of ₹ 406 billion (US$5.6 billion).
Pidilite is one of India’s leading chemical companies with over 5,000 employees and nine manufacturing plants across the country. The company’s products are used in a wide range of industries including automotive, electronics, packaging, construction and consumer durables. P id il ite also exports to over 100 countries around the world . The company ‘s shares are listed on t he Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) .
What are the benefits of owning Pidilite shares?
Pidilite Industries is an Indian chemical company that manufactures adhesives, sealants, and other construction chemicals. The company’s products are used in a variety of industries, including automotive, electronics, and packaging. Pidilite shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India. Pidilite’s share price has risen sharply in recent years, making it an attractive investment for many investors.
Pidilite shares offer a number of benefits to investors. First, Pidilite is a well-established company with a strong track record of growth.
Second, Pidilite’s products are used in a wide range of industries, providing the company with a diversified customer base.
Third, Pidilite has a growing presence in international markets, which offers the potential for further growth. Finally, Pidilite’s share price is currently trading at a discount to its intrinsic value, making it an attractive investment opportunity.
Is Pidilite a safe investment?
Pidilite is one of the leading companies in the Indian adhesives market and has a strong presence in the paints & construction chemicals segment. The company’s share price has been on a steady uptrend over the past year, fuelled by strong demand for its products. Pidilite’s share price is currently trading at Rs 1,500, up from Rs 1,200 last year. This represents a return of 25%.
Looking ahead, Pidilite is well-positioned to benefit from the growing demand for adhesives and paints in India. The company has a strong brand name and enjoys a large market share. Pidilite also has a diversified product portfolio, which gives it an edge over competitors. Thus, Pidilite seems like a safe investment for long-term growth.
What are the risks associated with investing in Pidilite shares?
Pidilite share price is currently trading at Rs 1,370, down Rs 20 or 1.45% on the BSE. Pidilite Industries Ltd is an India-based company engaged in the manufacturing of adhesives, sealants and construction chemicals for the industrial and consumer markets. Pidilite’s products are used in a wide range of industries, including automotive, electronics, packaging, footwear and leather. Despite its strong market position, Pidilite shares carry a number of risks that potential investors should be aware of.
The first risk is Pidilite’s reliance on a small number of key customers. In FY17, Pidilite generated just over 50% of its revenues from its top 10 customers. This high degree of concentration means that Pidilite is vulnerable to any shifts in demand from these customers. For example, if one of Pidilite’s major customers was to switch to a competitor’s products, this could have a significant impact on Pidilite’s business.
Another risk facing Pidilite is slow growth in developed markets. While Pidilite has been able to grow sales in emerging markets such as India and China, developed markets such as Europe and North America have been relatively sluggish in recent years. This has put pressure on Pidilite’s margins and profitability. Looking ahead, Pidilite will need to find ways to reignite growth in its developed market businesses if it is to continue to deliver shareholder value.
Finally, Pidilite shares are not cheap. At its current price, Pidilite trades on a trailing P/E ratio of 47x, which is significantly above the average for Indian companies (27x). This high valuation leaves little room for error and limits Pidilites upside potential. Given the risks inherent in the business, prospective investors should tread carefully before buying P idil ite shares at current levels .
3 Reasons Why you should buy Pidilite shares
Pidilite is one of the largest adhesive manufacturers in India with a market share of around 70%. The company has been growing at a fast pace and its sales have increased from Rs 2,406 crore in FY10 to Rs 7,325 crore in FY19. Pidilite’s share price has also gone up from Rs307 in 2010 to Rs 1,359 in 2019, giving a compound annual growth rate (CAGR) of 20%. Here are three reasons why you should buy Pidilite shares:
- Pidilite is a market leader in adhesives with a strong brand name. This gives it a competitive advantage over other players in the market.
- Pidilite has a diversified product portfolio with products ranging from adhesives to sealants to construction chemicals. This gives it a better chance of weathering economic downturns.
- Pidilite has a strong financial position with low debt and healthy cash flows. This provides it with the flexibility to invest for future growth.
Disclaimer: Pidilite has built a strong reputation for quality and innovation, and its products are widely acknowledged as being best-in-class. Given its strong market position and brand equity, Pidilite is well-positioned to benefit from the continued growth of the Indian economy. Consequently, we believe that Pidilite shares are a good long-term investment.
However, this post is for informational purposes only and should not be construed as an offer or solicitation to buy or sell securities. Any investment decision should be made after consulting with a financial advisor.
