1
Pidilite Industries
BSE SENSEX
32,382
S&P CNX
10,021
26 July 2017
1QFY18 Results Update | Sector: Consumer
CMP: INR805
TP: INR810 (+1%)
Neutral
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Results below expectation; expect normalcy from 3QFY18
PIDI’s 1QFY18 results came in below expectations.
Gross sales were down
1.3% YoY to INR16.7b. Net sales declined 2.6% YoY (est. of flat growth) to
INR15.3b, with flattish volume growth (est. of flat growth) in the Consumer
Bazaar segment. EBITDA was down 18.5% YoY (est. of -4% YoY) to INR3.2b,
while adj. PAT declined 16.7% YoY (est. of -6.1%) to INR2.3b.
Gross margin contracted 60bp YoY to 51.7%,
led by uptrend in key raw
material costs. Staff costs increased 150bp YoY to 11.8%. Other expenses were
up 200bp YoY to 18.9%, led by 39.6% increase in adspend due to timing
difference between advertisement and promotion spends compared to
1QFY17. EBITDA margin thus contracted 410bp YoY (est. of -150bp YoY) to 21%.
Consolidated segmental performance:
Consumer Bazaar revenues were down
1.6% YoY to INR14.3b. Segmental EBIT margin shrunk sharply by 390bp YoY to
23.0%. Consumer Bazaar EBIT declined 15.7% to INR3.3b. Industrial segment
was flat at INR2.5b, with margin contraction of 360bp to 14.7%.
Concall highlights:
1) No significant schemes launched in 1QFY18 to push stock.
Provided certain amount of money to channel partners for loss on stock due to
GST transition; accounted fully in other expenses in 1QFY18. 2) Company had
taken price hikes in segments that were affected more by RM inflation; no
price hikes taken in bigger products like Fevicol and Fevikwik. 3) Company sees
reasonable pick-up in demand after 1
st
week of July.
Valuation and view:
We cut our EPS numbers by 2%/3% for FY18/FY19 to build
in the miss on revenue and margins. PIDI offers a high-quality discretionary
play with strong competitive positioning, proven in-market excellence, and an
impeccable track record of generating long-term shareholder value over
multiple periods. While we admire the business franchise and long-term
growth prospects, fair valuations at 39x FY19E EPS lead us to maintain our
Neutral
rating with a revised target price of INR810 (INR835 earlier, 38x FY19E
EPS, 5% premium to three-year average).
(INR Million)
4Q
12,954
4.9
10,375
2,579
19.9
296
48
286
2,520
971
38.5
1,549
-7.5
12.0
1Q
15,289
-2.6
12,079
3,210
21.0
313
37
432
3,292
1,033
31.4
2,260
-16.7
14.8
FY18
2QE
3QE
15,594 16,146
10.0
21.0
12,015 12,516
3,579
3,629
23.0
22.5
318
316
26
30
275
272
3,510
3,556
1,088
1,102
31.0
31.0
2,422
2,454
4.9
21.5
15.5
15.2
FY17
4QE
15,384
18.8
12,250
3,134
20.4
318
34
279
3,061
937
30.6
2,124
37.1
13.8
56,168
4.8
43,570
12,598
22.4
1,151
139
1,123
12,430
3,851
31.0
8,579
6.7
15.3
FY18E
62,414
11.1
48,861
13,552
21.7
1,264
127
1,259
13,419
4,160
31.0
9,259
7.9
14.8
FY18
1QE
16,008
2.0
12,226
3,782
23.6
270
32
193
3,672
1,120
30.5
2,552
-6.1
15.9
Var.
(%)
-4.5
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg. Val, INR m/Vol m
Free float (%)
PIDI IN
512.7
427.6 / 6.6
837 / 569
-7/0/-5
385
30.4
Financials & Valuations (INR b)
Y/E Mar
2017 2018E 2019E
Net Sales
56.2
62.4
72.4
EBITDA
12.6
13.6
15.5
PAT
8.6
9.3
10.6
EPS (INR)
16.7
18.1
20.6
Gr. (%)
6.7
7.9
14.0
BV/Sh (INR)
64.5
79.0
96.1
RoE (%)
28.2
25.2
23.5
RoCE (%)
26.8
24.1
22.7
P/E (x)
48.1
44.6
39.1
EV/EBITDA (x)
32.0
29.4
25.3
Estimate change
TP change
Rating change
Consolidated - Quarterly Earning Model
Y/E March
Net Sales
YoY Cha nge (%)
Tota l Expendi ture
EBITDA
Ma rgi ns (%)
Depreci a ti on
Interes t
Other Income
PBT
Ta x
Ra te (%)
Adj PAT
YoY Cha nge (%)
Ma rgi ns (%)
E: MOSL Estimates
1Q
15,694
6.8
11,754
3,939
25.1
258
35
241
3,887
1,174
30.2
2,713
16.3
17.3
FY17
2Q
3Q
14,177 13,344
7.5
-0.3
10,951 10,477
3,225
2,866
22.8
21.5
303
295
26
30
324
272
3,209
2,814
912
793
28.4
28.2
2,309
2,020
12.4
1.5
16.3
15.1
-15.1
-10.4
-11.5
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Krishnan Sambamoorthy - Research analyst
(Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 3982 5428
Vishal Punmiya - Research analyst
(Vishal.Punmiya@MotilalOswal.com); +91 22 3980 4261

Pidilite Industries
Key quarterly charts
Exhibit 1: Segmental Performance (Consolidated)
Segmental
Consumer and Bazaar
Sales (INRm)
Sales Growth (%)
EBIT (INRm)
% Contribution
EBIT Growth %
EBIT margin %
Industrial Products
Sales (INR m)
Sales Growth (%)
EBIT (INRm)
% Contribution
EBIT Growth %
EBIT margin %
2,169
16.4
161
6.2
-16.0
7.4
2,327
7.7
267
11.8
8.2
11.5
2,039
5.2
251
11.8
38.8
12.3
2,157
-1.6
288
18.9
56.9
13.4
2,359
8.8
366
9.8
127.4
15.5
2,270
-2.5
339
10.1
26.9
14.9
2,262
10.9
367
11.2
46.4
16.2
2,510
16.4
470
15.8
63.1
18.7
2,480
5.2
452
10.4
23.6
18.2
2,388
5.2
455
13.0
34.1
19.0
2,181
-3.6
330
10.1
-10.1
15.1
2,541
1.2
409
13.5
-12.8
16.1
2,485
0.2
365
10.0
-19.3
14.7
11,478 10,326 10,009
20.7
2,474
95.1
1.3
21.6
15.1
2,009
88.7
3.4
19.5
13.0
1,905
89.5
21.5
19.0
8,418 13,259 11,820 12,090 10,764 14,548 12,929 12,186 11,579 14,318
7.7
1,269
83.4
18.3
15.1
15.5
3,421
91.3
38.3
25.8
14.5
2,984
88.9
48.5
25.2
20.8
2,935
89.2
54.1
24.3
27.9
2,519
85.0
98.4
23.4
9.7
3,915
89.6
14.4
26.9
9.4
3,072
87.7
2.9
23.8
0.8
2,943
90.2
0.3
24.1
7.6
2,651
87.1
5.3
22.9
-1.6
3,300
90.1
-15.7
23.0
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18
Source: Company, MOSL
Exhibit 2: Consol. sales declined 2.6% YoY
Sales growth (%)
Exhibit 3: Gross margins contracted 60bp YoY
Gross Margins (%)
Source: Company, MOSL
Source: Company, MOSL
Exhibit 4: Employee expenses up 150bp YoY…
Employees Cost (%)
Exhibit 5: ...and other expenses were up by 200bp YoY
Other Expenditure (%)
Source: Company, MOSL
Source: Company, MOSL
26 July 2017
2

Pidilite Industries
Exhibit 6: EBITDA margins thus contracted 410bp YoY
EBIDTA Margins (%)
Exhibit 7: Consol. PAT declined 16.7% YoY
PAT Growth (%)
Source: Company, MOSL
Source: Company, MOSL
Standalone performance for 1QFY18
Gross sales declined by a meager 0.2% YoY to INR14.9b.
Net sales, EBITDA and adj. PAT declined 1.5%, 20.7% and 20.3%, respectively.
Gross margin contracted by 240bp YoY to 51.1% and EBITDA margin by 550bp to
22.7%. Staff costs increased 120bp YoY to 10.7%, and other expenses were up
190bp YoY to 17.7%.
Consumer Bazaar revenue declined 0.3% YoY. Consumer Bazaar segmental EBIT
margin shrunk 560bp YoY to 25.6%. Consumer Bazaar EBIT declined 18.1% to
INR3.2b.
Exhibit 8: Segmental Performance (Standalone)
Segmental
Consumer and Bazaar
Sales (INRm)
Sales Growth (%)
EBIT (INRm)
% Contribution
EBIT Growth %
EBIT margin %
Industrial Products
Sales (INR m)
Sales Growth (%)
EBIT (INRm)
% Contribution
EBIT Growth %
EBIT margin %
2,169
16.4
161
6.3
-16.0
7.4
2,327
7.7
267
11.9
8.2
11.5
2,039
5.2
251
11.8
38.8
12.3
2,157
-1.6
288
17.7
56.9
13.4
2,359
8.8
366
10.1
127.4
15.5
2,270
-2.5
339
10.6
26.9
14.9
2,262
10.9
367
11.3
46.4
16.2
2,510
16.4
470
16.9
63.1
18.7
2,480
5.2
452
10.4
23.6
18.2
2,388
5.2
455
13.3
34.1
19.0
2,181
-3.6
330
10.2
-10.1
15.1
2,541
1.2
409
13.7
-12.8
16.1
2,485
0.2
365
10.2
-19.3
14.7
10,169
20.8
2,413
95.0
-0.1
23.7
9,135
15.9
1,997
88.7
3.4
21.9
8,803
12.5
1,893
89.5
21.4
21.5
7,668 11,597 10,259 10,442
9.7
1,373
84.4
11.8
17.9
14.0
3,287
91.0
36.2
28.3
12.3
2,831
88.3
41.8
27.6
18.6
2,884
89.0
52.4
27.6
9,248 12,528 10,916 10,237
20.6
2,334
84.0
70.0
25.2
8.0
3,908
89.6
18.9
31.2
6.4
2,998
87.4
5.9
27.5
-2.0
2,927
90.1
1.5
28.6
9,924 12,489
7.3
2,592
86.9
11.1
26.1
-0.3
3,199
89.8
-18.1
25.6
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18
Source: Company, MOSL
26 July 2017
3

Pidilite Industries
Exhibit 9: Quarterly performance of Overseas Subsidiaries
Sales (INR Mn)
Pidilite USA Inc.
Pulvitec do Brasil
Pidilite Bangladesh
Pidilite Industries Egypt SAE
Pidilite Bamco (Thailand)
Pidilite MEA Chemicals LLC
Pidilite Lanka Pvt Ltd
Others
Total
EBITDA (INR Mn)
Pidilite USA Inc.
Pulvitec do Brasil
Pidilite Bangladesh
Pidilite Industries Egypt SAE
Pidilite Bamco (Thailand)
Pidilite MEA Chemicals LLC
Pidilite Lanka Pvt Ltd
Others
Total
EBITDA Margin (%)
Pidilite USA Inc.
Pulvitec do Brasil
Pidilite Bangladesh
Pidilite Industries Egypt SAE
Pidilite Bamco (Thailand)
Pidilite MEA Chemicals LLC
Pidilite Lanka Pvt Ltd
Others
Total
1QFY17
761
219
266
39
112
197
53
20
1,667
1QFY17
62
-2
53
1
15
-43
2
4
92
1QFY17
8.2
-1.0
20.0
3.3
13.5
-22.0
4.4
18.9
5.5
1QFY18
476
199
238
69
106
182
55
22
1,347
1QFY18
22
-1
54
1
4
-26
0
70
124
1QFY18
4.6
-0.6
22.8
0.9
4.0
-14.0
-0.7
320.5
9.2
Change (%)
(37.4)
(9.1)
(10.7)
77.0
(4.9)
(7.5)
4.4
9.0
(19.1)
Change (%)
(64.5)
(45.5)
1.9
(53.8)
(72.2)
(41.1)
(117.4)
1,747.4
34.6
Change (%)
(3.5)
0.4
2.8
(2.5)
(9.6)
8.0
(5.1)
301.6
3.7
*Note: 1QFY18 EBITDA includes sale of assets of Cyclo division (INR58.3m)
Source: Company, MOSL
Exhibit 10: Quarterly performance of Domestic Subsidiaries
Sales (INR Mn)
Nina Waterproofing Systems Pvt. Ltd.
Percept Waterproofing Services Ltd.
ICA Pidilite Pvt. Ltd.
Others
Total
EBITDA (INR Mn)
Nina Waterproofing Systems Pvt. Ltd.
Percept Waterproofing Services Ltd.
ICA Pidilite Pvt. Ltd.
Others
Total
EBITDA Margin (%)
Nina Waterproofing Systems Pvt. Ltd.
Percept Waterproofing Services Ltd.
ICA Pidilite Pvt. Ltd.
Others
Total
1QFY17
355
90
145
127
716
1QFY17
40
8
21
15
83
1QFY17
11.2
9.1
14.3
11.7
11.6
1QFY18
461
121
278
162
1,021
1QFY18
49
10
5
16
80
1QFY18
10.6
8.5
1.8
9.7
7.8
Change (%)
29.8
34.7
91.3
27.6
42.5
Change (%)
23.0
27.2
(75.5)
5.4
(4.3)
Change (%)
(0.6)
(0.5)
(12.5)
(2.0)
(3.8)
Source: Company, MOSL
26 July 2017
4

Pidilite Industries
Pidilite conference call highlights
Performance
Price hike taken in some products due to high RM prices.
nd
1st price hike was taken in 4Q and 2 in May in some products. Price increase
was not across the board; no change in bigger products like
Fevicol
and
Fevikwik
prices.
For the first two months of 1QFY18, the company saw high-single-digit volume
and value growth; June impacted by destocking by channel partners (mostly
retailers). Reasonable pick-up after 1
st
week of July.
No significant schemes done in 1QFY18 to push stocks. Provided certain amount
of money to channel partners for loss on stock due to GST transition; accounted
fully in other expenses in 1QFY18.
Have passed on the benefits of tax reduction due to GST.
Segmental highlights
Exports focus in Consumer Bazaar products will be in emerging markets (SEA,
SAARC and Africa).
Industrial exports focus will be in the US and Europe.
Stationery is the largest category in Arts & Craft materials, followed by
handicrafts/artisans and then Hobby color. Last year, the handicrafts/artisans
segment saw competition from some small players.
Joinery segment is increasing in India. Many small players; company has
developed portfolio of products and separate route to market for this segment.
Players like Henkel are present in this segment.
th
Wood-based adhesives would be less than 1/4 of company’s revenues.
GST
Most of the direct distributors have moved to GST. Will take few more weeks for
things to normalize for wholesaler and retailer. Distributor carries between 15-
25 days. Retailer carries 15-25 days; so total around 45 days.
Financials, material costs and guidance
VAM prices increase QoQ; weighted avg. price in 4Q stood at USD 720, whereas
in 1QFY18 it was USD920. VAM price movement depends on prices of oil,
ethylene & acetic acid, as well as supply/demand situation globally. RM basket
saw increase in some, while benefited in some raw materials because of
strengthening of currency. PIDI’s RM index inflation was 4% YoY, which was
partially mitigated by change in selling price.
Will be judicious in pricing; will not pass on entire increase in raw material cost
from low levels of last 2 years.
Expects to spend more on advertisement (as a % of sales) going forward. Ad
spends to be around 4% of net sales. Increase in ad spends not led by
competition but by consumption opportunity.
Will see some deterioration in GM from last 2 years’ levels.
Running initiatives to optimize some fixed costs.
No significant change in price premium to unorganized players.
Continue to look for acquisition opportunity in India and outside. Company is
very selective about it and evaluating certain targets. Acquisition in overseas
markets will on stronger players in their respective markets.
Capex: INR1.5b in FY18.
26 July 2017
5

Pidilite Industries
Valuation & view
PIDI offers a high quality discretionary play with strong competitive positioning,
proven in-market excellence and an impeccable track record of generating long
term shareholder value over multiple periods.
While we admire the business franchise and long term growth prospects, fair
valuations at 39x FY19 EPS leads us to maintain our Neutral rating with a revised
target price of INR 810 (INR 835 earlier, 38x FY19EPS, 5% premium to three year
average).
Exhibit 11: We change our estimates by 2%/3% for FY18/FY19 respectively to build in miss
on topline and margins
INR m
Sales
EBITDA
PAT
New
FY18E
62,414
13,552
9,259
FY19E
72,397
15,458
10,555
Old
FY18E
63,711
14,070
9,458
FY19E
73,877
16,117
10,854
Change
FY18E
-2.0
-3.7
-2.1
FY19E
-2.0
-4.1
-2.8
Source: Company, MOSL
Exhibit 12: PIDI P/E (x): Sharp re-rating in last 12 months
53.0
41.0
29.0
17.0
5.0
26.6
26.6
7.8
PE (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
42.3
Exhibit 13: PIDI P/E premium vs. Sensex
150
Pidilite Inds. PE Relative to Sensex PE (%)
LPA (%)
124.9
42.0
100
50
0
-50
52.2
Source: Company, MOSL
Source: Company, MOSL
EPS Growth YoY (%)
FY17
8.7
7.3
-5.7
1.9
4.5
12.4
0.9
1.9
9.4
175.7
12.1
-1.6
11.5
15.0
-46.4
6.7
-23.0
87.1
-32.1
18.5
FY18E
5.6
16.0
20.8
6.7
6.6
15.4
6.5
16.8
10.4
-20.4
10.5
0.6
7.5
32.8
106.4
7.9
11.6
29.1
48.0
13.8
FY19E
19.5
23.5
21.1
18.3
20.0
14.6
9.3
19.2
11.4
22.4
21.1
17.6
16.6
26.2
64.7
14.0
51.9
49.3
40.0
18.2
FY17
53.9
52.3
50.2
42.2
41.9
54.2
35.3
59.3
34.9
33.5
51.9
57.5
55.6
70.3
70.8
48.1
93.9
96.2
128.1
59.5
P/E (x)
FY18E
51.1
45.1
41.5
39.6
39.4
47.0
33.1
50.7
31.7
42.0
47.0
57.2
51.7
52.9
34.3
44.6
84.1
74.5
86.6
52.3
FY19E
42.8
36.5
34.3
33.5
32.8
41.0
30.3
42.6
28.4
34.3
38.8
48.6
44.4
42.0
20.8
39.1
55.4
49.9
RoE (%) Div. (%)
FY17
28.5
36.9
50.4
28.4
35.8
24.6
22.2
65.6
23.5
21.1
36.7
39.0
45.3
40.0
5.9
28.2
10.4
21.3
FY17
0.8
0.0
0.9
0.8
0.8
0.6
1.0
1.5
1.9
1.6
0.9
0.9
4.5
0.5
0.0
0.6
0.1
0.0
Exhibit 14: Valuation Matrix
Company
Consumer
Asian Paints
Britannia Inds.
Colgate-Palm.
Dabur India
Emami
Godrej Cons.
GlaxoSmith C H L
Hind. Unilever
ITC
Jyothy Lab.
Marico
Nestle India
P & G Hygiene
Page Industries
Parag Milk
Pidilite Inds.
United Breweries
United Spirits
Retail
Jubilant Food.
Titan Company
Reco
CMP
(INR)
Neutral
Buy
Buy
Neutral
Buy
Neutral
Sell
Buy
Neutral
Neutral
Neutral
Sell
Buy
Buy
Neutral
Neutral
Neutral
Neutral
1,134
3,854
1,066
306
1,113
1,025
5,504
1,164
293
376
326
6,787
8,063
16,786
255
805
816
2,572
Target
Price
(INR)
1,200
4,450
1,335
315
1,265
930
4,500
1,285
280
405
360
5,990
9,082
19,125
240
810
850
2,525
850
545
Mkt Cap
Upside
(INR B) (USD B)
(%)
6
15
25
3
14
-9
-18
10
-5
8
10
-12
13
14
-6
1
4
-2
-34
1
1,105
462
291
541
251
679
231
2,487
3,540
69
428
657
264
186
21
424
214
377
85
476
17.2
7.2
4.5
8.4
3.9
10.6
3.6
38.6
55.0
1.1
6.6
10.2
4.1
2.9
0.3
6.6
3.3
5.9
1.3
7.4
Sell
1,282
Neutral 537
61.8
8.2
0.2
44.2
20.6
0.5
Source: Company, MOSL
26 July 2017
6

Pidilite Industries
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
Raw Materials
Gross Profit
Margin (%)
Operating Expenses
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income
Profit before Taxes
Change (%)
Margin (%)
Tax
Tax Rate (%)
Adj PAT
Change (%)
Margin (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Liability
Minority Interest
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Goodwill
Others
Investments
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Account Payables
Provisions
Net Current Assets
Application of Funds
E: MOSL Estimates
FY15
48,783
13.0
26,686
22,097
45.3
14,048
8,049
14.2
16.5
1,178
156
113
6,828
10.3
14.0
1,694
24.8
5,134
13.2
10.5
FY15
513
22,193
22,706
584
566
51
23,907
17,867
8,298
9,570
4,618
215
68
3,599
15,077
6,410
5,861
860
1,946
9,240
6,933
2,308
5,837
23,907
FY16
53,612
9.9
25,847
27,765
51.8
16,030
11,735
45.8
21.9
1,005
133
778
11,376
66.6
21.2
3,335
29.3
8,040
56.6
15.0
FY16
513
27,316
27,829
848
670
427
29,774
20,646
9,573
11,073
4,001
239
97
6,490
17,149
6,290
7,294
1,319
2,246
9,276
8,418
858
7,873
29,774
FY17
56,168
4.8
26,396
29,772
53.0
17,174
12,598
7.4
22.4
1,151
139
1,123
12,430
9.3
22.1
3,851
31.0
8,579
6.7
15.3
FY17
513
32,553
33,066
848
670
427
35,011
23,024
11,083
11,941
4,001
239
97
7,990
22,090
7,605
9,127
2,495
2,863
11,347
8,086
3,261
10,743
35,011
FY18E
62,414
11.1
29,973
32,440
52.0
18,888
13,552
7.6
21.7
1,264
127
1,259
13,419
8.0
21.5
4,160
31.0
9,259
7.9
14.8
FY18E
513
40,013
40,526
848
670
427
42,471
25,445
12,769
12,676
4,001
239
97
9,490
27,328
8,536
9,390
6,254
3,148
11,361
9,172
2,189
15,967
42,470
FY19E
72,397
16.0
34,926
37,471
51.8
22,013
15,458
14.1
21.4
1,416
127
1,382
15,297
14.0
21.1
4,742
31.0
10,555
14.0
14.6
FY19E
513
48,769
49,281
848
670
427
51,226
27,918
14,658
13,260
4,001
239
97
10,990
35,551
9,904
10,894
11,271
3,482
12,911
10,660
2,251
22,639
51,226
(INR Million)
FY20E
83,978
16.0
40,534
43,443
51.7
25,580
17,864
15.6
21.3
1,633
127
1,526
17,630
15.2
21.0
5,465
31.0
12,164
15.2
14.5
(INR Million)
FY20E
513
59,134
59,646
848
670
427
61,591
30,462
16,835
13,627
4,001
239
97
12,490
45,830
11,490
12,639
17,827
3,874
14,693
12,368
2,325
31,137
61,591
26 July 2017
7

Pidilite Industries
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Debtor (Days)
Creditor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
Cash Flow Statement
Y/E March
PBT before Extra Ord
Add: Depreciation
Interest Paid
Less: Taxes Paid
Interest income
(Incr)/Decr in WC
CF from Operations
Extra ordinary items
CFO after extraordinary
Incr in FA
Free Cash Flow
Pur of Investments
CF from Invest.
Change in Networth
Incr in Debt
Dividend Paid
Interest Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
FY15
10.0
12.3
44.3
2.9
28.7
FY16
15.7
17.6
54.3
4.2
28.5
FY17
16.7
19.0
64.5
4.9
29.2
FY18E
18.1
20.5
79.0
3.0
16.6
FY19E
20.6
23.4
96.1
3.0
14.6
FY20E
23.7
26.9
116.3
3.0
12.6
80.4
65.4
8.4
50.8
18.2
0.4
51.3
45.6
7.6
34.6
14.8
0.5
48.1
42.4
7.2
32.0
12.5
0.6
44.6
39.2
6.4
29.4
10.2
0.4
39.1
34.5
5.4
25.3
8.4
0.4
33.9
29.9
4.6
21.5
6.9
0.4
24.3
23.6
39.1
44
62
3.2
31.8
30.3
46.3
50
73
2.8
28.2
26.8
41.1
59
68
2.5
25.2
24.1
39.2
55
69
2.2
23.5
22.7
40.6
55
68
2.0
22.3
21.7
42.9
55
68
1.9
0.0
FY15
6,828
1,178
156
1,694
113
-718
5,637
-107
5,529
-3,723
1,806
-996
-4,719
-3,647
125
1,789
-156
167
-1,722
-912
1,772
860
0.0
FY16
11,376
1,005
133
3,335
778
-1,577
6,822
-48
6,774
-1,892
4,882
-2,891
-4,782
-5,276
264
2,519
-133
1,093
-1,533
459
860
1,319
0.0
FY17
12,430
1,151
139
3,851
1,123
-1,694
7,054
-4
7,050
-2,019
5,031
-1,500
-3,519
-6,239
0
2,909
-139
1,114
-2,355
1,176
1,319
2,495
0.0
FY18E
13,419
1,264
127
4,160
1,259
-1,465
7,927
0
7,927
-2,000
5,927
-1,500
-3,500
-1,791
0
0
-127
1,250
-668
3,759
2,495
6,254
0.0
FY19E
15,297
1,416
127
4,742
1,382
-1,655
9,061
0
9,061
-2,000
7,061
-1,500
-3,500
-1,791
0
0
-127
1,375
-543
5,017
6,254
11,271
0.0
(INR Million)
FY20E
17,630
1,633
127
5,465
1,526
-1,942
10,456
0
10,456
-2,000
8,456
-1,500
-3,500
-1,791
0
0
-127
1,518
-400
6,556
11,271
17,827
26 July 2017
8

Pidilite Industries
Corporate profile
Company description
Pidilite Industries is the largest branded adhesives
player in India, with an iconic brand like Fevicol.
Apart from a strong presence in adhesives, company
has expanded into emerging segments like
mechanized joinery, modular furniture, flooring,
automotive care and water proofing through Dr Fixit
and Roff.
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Jun-17
69.6
7.4
11.8
11.2
Mar-17
69.6
7.1
12.1
11.2
Jun-16
69.6
6.1
14.0
10.3
Exhibit 3: Top holders
Holder Name
Life Insurance Corporation Of India
Axis Mutual Fund Trustee Limited A/C Axis
Mutual Fund A/C Axis Long Term Equity
Fund
The Genesis Emerging Markets Investment
Company
The Genesis Group Trust For Employee
Benefit Plans
New World Fund Inc
% Holding
2.9
1.8
1.3
1.2
1.2
Source: Capitaline
Note: FII Includes depository receipts
Source: Capitaline
Exhibit 4: Top management
Name
N K Parekh
M B Parekh
Bharat Puri
Savithri Parekh
Designation
Vice Chairman
Executive Chairman
Managing Director
Company Secretary
Exhibit 5: Directors
Name
Bansi S Mehta
Sanjeev Aga
A B Parekh
Meera Shankar
Vinod K Dasari
Name
Ranjan Kapur
Sabyaschi Patnaik
A N Parekh
Uday Khanna
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Delloite Haskins & Sells
M M Sheth & Co
Mahajan & Aibara
Type
Statutory
Secretarial Audit
Internal
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
18.1
20.6
23.7
Consensus
forecast
18.5
21.4
27.6
Variation (%)
-2.3
-3.9
-14.1
Source: Bloomberg
Source: Capitaline
26 July 2017
9

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Pidilite Industries
A graph of daily closing prices of securities is available at
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Analyst ownership of the stock
PIDILITE INDUSTRIES
No
26 July 2017
10