Pidilite Industries Promoter - Madhukar Parekh is among the richest person in India

Madhukar Parekh has a net worth of Rs 23,170 crore.

Madhukar Parekh is among the richest person in India. As of July 19 2022, he has a net worth of Rs 23,170 crore. He is the promoter of India’s largest adhesives and sealants manufacturer, Pidilite Industries Ltd, and the son of Balvantray Kalyanji Parekh, founder of the company.

Pidilite Industries belongs to BSE group ‘A’ and has a market capitalisation of Rs 1,16,855 crore. The company operates under famous brands like M-Seal, Fevikwik, Dr Fixit, Fevicol, Motomax, Hobby Ideas, and Araldite.

The company has a 70% market share in the adhesive business in India and a pan India presence with a network of over 5000 distributors and 200,000 dealers. The company also operates in 8 other countries and sells its products in 80 countries globally. Pidilite Industries is a part of India’s famous investor, Saurabh Mukherjee’s consistent compounder portfolio. The company has delivered a 10-year sales and net profit growth of 12% and 14%, respectively.

It operates in different segments like adhesives and sealants (contributes 52.5% to the company’s revenue), construction and paint chemicals (19%), art and craft materials (8%), pigment and preparation (6.2%), industrial adhesives (6%), and industrial resins & construction chemicals (6%).

As per the March FY22 period ending, the company has an ROE, ROCE, and dividend payout ratio of 20.2%, 26.1%, and 0.43%, respectively. The company has almost zero long-term debt. Talking about the shareholding pattern, 69.94% stake in the company is owned by the promoters, FIIs and DIIs together hold 18.61% and the rest 11.45% is owned by non-institutional investors.

The company’s strong business and financials are greatly reflected in the stock price movement. The 3-year, 5-year, and 10-year CAGR stock appreciation are recorded at 23%, 24% and 25%, respectively.

Shares of Pidilite Industries are trading at a PE multiple of 96.4x. On July 19, at 12:22 pm, the stock is down 0.41% and trading at Rs 2291.8. It has a 52-week high and low of Rs 2765 and Rs 1989, respectively.