Pidilite Industries Limited DCF Valuation
PIDILITIND · Chemicals · Current price ₹1,502.8
Pidilite Industries Limited cash-flow valuation
Our engine did not use a discounted-cash-flow model for Pidilite Industries Limited. It routes each business to the methods that suit it, and a DCF is a poor lens where cash-flow forecasts are fragile or the business is capital-structure driven. The methods it did use, and why, are set out below. Our published estimate is ₹1,952.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Pidilite Industries Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Pidilite Industries Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹1,756 – ₹2,147
Why this method for this business
Normalized earnings and EV/EBITDA are appropriate for a specialty chemicals company with durable moat and stable cash flows. Relative PE is used to capture market sentiment and premium for quality.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
required inputs missing
- DCF is not suitable for a commodity-like business with cyclical earnings
- Book value is not relevant for an asset-light, high-margin business
What was missing
- Lack of forward EPS estimates for more precise normalization
- Limited analyst coverage for peer comparison
What drives it
16 inputs, grouped by how strong each claim is
- Sector-median P/E
- 41.7×
- Peers used
- 5
- EPS (TTM)
- 26.02 ₹/share
- Own-history median P/E
- 151.09×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Anchor correction
- peer anchor 41.7x diverges 3.6x from 6yr own-history 151.1x (no size-comparable peer) — anchor blended 0.6 toward own-history → 107.3x
- Term: quality
- +17.2%
- Term: growth
- +31.8%
- Term: capital_allocation
- +2.1%
- Term: financial_strength
- +10.0%
- Term: history
- +12.2%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
peer-anchor mismatch — deep own-history used instead
quality 89/100 (high, stable returns) → premium
durable ~16% CAGR (ROCE 31% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: market paid +41% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- -30.1%
- Fair-multiple confidence
- 82%
- Fair P/E
- 75×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Pidilite Industries Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Pidilite Industries Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.