One of the large-cap stocks engaged in the manufacturing and marketing of adhesives, sealants, construction chemicals, and various other products. This article explains the company’s market share, future plans, Industry outlook, and financials.
Price action
With a market capitalization of Rs. 1,44,929.29 crores on Friday, the shares of Pidilite Industries Ltd jumped upto 0.6 percent, making a high of Rs. 2883.80 per share compared to its previous closing price of Rs. 2864.40 per share.
Company Overview
Pidilite Industries Limited, established in 1959 by the late Shri Balvant Kalyanji Parekh, is a leading Indian multinational company specializing in consumer and specialty chemicals. Headquartered in Mumbai, India, the company offers a diverse range of products, including adhesives, sealants, construction chemicals, art materials, and industrial resins.
Pidilite’s well-known brands, such as Fevicol, Dr. Fixit, and M-Seal, have made it a household name in the adhesives and sealants market. Over the decades, Pidilite has expanded its presence both domestically and internationally, serving various markets worldwide.
Market share
Pidilite Industries Limited is a leading player in India’s adhesives and sealants market, with its flagship brand, Fevicol, holding approximately a 70 percent market share. In the fiscal year 2024, the Consumer & Bazaar segment, which includes adhesives and sealants, contributed about 55.5 percent of the company’s total net sales.
Industry Outlook
The Indian adhesives market is valued at approximately $2.87 billion in 2024 and is projected to grow at a CAGR of 6.98 percent through 2028. Globally, the adhesives and sealants market was valued at $76.1 billion in 2024 and is expected to reach $86.6 billion by 2029, growing at a CAGR of 2.6 percent.
Future Outlook
The company plans to introduce new products in categories such as new waterproofing products, tile adhesives, and construction chemicals to broaden its portfolio. It also aims to strengthen its presence in rural markets by adding new retail points and focusing on overall consumers.
Additionally, Pidilite is exploring technological partnerships to enhance its product offerings in advanced packaging and conversion for sustainable growth. Pidilite remains committed to investing in brand building, infrastructure, and innovation to maintain its leadership in the specialty chemicals sector.
Strategic initiatives
The company prioritizes ongoing investments in brand building, infrastructure, and innovation to fuel its growth. It also takes a cautious approach to inorganic growth, focusing on acquisitions that offer significant value and long-term benefits.
New Products and Innovations
The company continues to focus on pioneering new products and categories, particularly in B2B sectors like electronics and EV manufacturing. It is also exploring technological partnerships to enhance its product offerings in advanced packaging and conversion.
Recent Quarter Highlights
In Q3 FY ’25, the company achieved a 9.7 percent volume growth across categories and geographies, with a 9.3 percent revenue growth. The Consumer and Bazaar (C&B) segment saw a 7.3 percent volume increase, while the B2B segment grew by 21.7 percent.
Gross margins improved by 100 basis points year-on-year, driven by lower input prices, with VAM consumption at $884/ton compared to $902/ton last year.
Financials and Ratios
The company’s revenue rose by 8.14 percent from Rs. 3,166.97 crore to Rs. 3,424.69 crore in Q3FY24-25. Meanwhile, Net Profit increased from Rs. 510.48 crore to Rs. 552.42 crore during the same period.
The company has a Return on Equity (ROE) of 21.95 percent, a Return on Capital Employed (ROCE) of 29.19 percent, and a low Debt-to-Equity ratio of 0.04.
Written by Sridhar J
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