5 things you should know before investing in Pidilite Industries
Pidilite Industries, which makes popular adhesive Fevicol has shown revenue growth of 19 per cent over the past 3 years and its debt has reduced by Rs 105 crore.
Source: Pidilite Industries
It reported a healthy return on equity ROE of 20.19 per cent for the past 3 years along with a healthy return on capital employed ROCE of 27.03 per cent.
ilite Industries
Source: Pidilite Industries
Pidilite is a virtually debt-free company with a strong interest coverage ratio of 59.45 and high operating margins of 21.39 per cent over the last 5 years.
Source: Pidilite Industries
However, Pidilite has also shown poor profit growth at 4.50 per cent over the past 3 years.
Source: Pidilite Industries
It trades at an expensive valuation as its price-to-earnings (PE) ratio is 85.06 along with an EV/EBITDA ratio of 56.31.