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Pidilite IndustriesBOM:500331 -1.79%98 Return-on-Tangible-Equity is 29.00% as of Mar. 2026, which is 12% below its 10-year median of 32.88. GuruFocus rates BOM:500331 with a GF Score™ of 98/100 and a GF Value™ of ₹1,717.07 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,570 Chemicals companies, Pidilite Industries ranks better than 95.22% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Pidilite Industries's annualized net income for the quarter that ended in Mar. 2026 was ₹23,171 Mil. Pidilite Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹79,893 Mil. Therefore, Pidilite Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 29.00%.
The historical rank and industry rank for Pidilite Industries's Return-on-Tangible-Equity or its related term are showing as below:
BOM:500331'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 27.82 Med: 32.88 Max: 39.75
Current: 34.06
During the past 13 years, Pidilite Industries's highest Return-on-Tangible-Equity was 39.75%. The lowest was 27.82%. And the median was 32.88%.
BOM:500331's Return-on-Tangible-Equity is ranked better than 95.22% of 1570
companies
in the Chemicals industry
Industry Median: 5.745
vs BOM:500331: 34.06
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Pidilite Industries Return-on-Tangible-Equity Related Terms
Pidilite Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Pidilite Industries's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:500331 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Pidilite Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pidilite Industries Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Pidilite Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Pidilite Industries's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 29.00% mean?
Pidilite Industries (BOM:500331) has a Return-on-Tangible-Equity of 29.00% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pidilite Industries and its competitors. This is 12% below median its historical median of 32.88. Over the past decade, Pidilite Industries' Return-on-Tangible-Equity has ranged from 27.82 to 39.75. According to the industry distribution chart, Pidilite Industries ranks #75 out of 1570 companies in the Chemicals industry, placing it in the top 4.8%.
Is Pidilite Industries' Return-on-Tangible-Equity too high?
Pidilite Industries' current Return-on-Tangible-Equity of 29.00% is 12% below median its 10-year median of 32.88. Over the past 10 years, this metric has ranged from a low of 27.82 to a high of 39.75. The Chemicals industry median Return-on-Tangible-Equity is 5.75. Pidilite Industries' value of 29.00% is 404.8% above this industry median. Based on the distribution chart, Pidilite Industries ranks #75 out of 1570 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Pidilite Industries has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pidilite Industries' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Pidilite Industries ranks #75 out of 1570 companies for Return-on-Tangible-Equity. This places Pidilite Industries in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.75. Pidilite Industries' value of 29.00% is 404.8% above this benchmark. Historically, Pidilite Industries' own Return-on-Tangible-Equity has ranged from 27.82 to 39.75 over the past decade. While the company's 10-year median is 32.88 vs. the industry median of 5.75, Pidilite Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.75, based on 1,570 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pidilite Industries's current Return-on-Tangible-Equity of 29.00% is 404.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pidilite Industries and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pidilite Industries's current Return-on-Tangible-Equity is 29.00%, which is 12% below median its own 10-year median of 32.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pidilite Industries stock overvalued right now?
Based on GuruFocus' analysis, Pidilite Industries (BOM:500331) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,717.07, compared to a current price of ₹1,552.30 — trading 9.6% below its estimated fair value. The current Return-on-Tangible-Equity is 29.00%, which is 12% below median its 10-year median of 32.88 and 404.8% above the Chemicals industry median of 5.75. Pidilite Industries' overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Pidilite Industries (BOM:500331), the current Return-on-Tangible-Equity is 29.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pidilite Industries (BOM:500331) Overvalued in 2026?
Based on GuruFocus' analysis, Pidilite Industries stock appears to be undervalued.
The current stock price of ₹1,552.30 is trading 9.6% below its estimated GF Value™ of ₹1,717.07.
GuruFocus considers Pidilite Industries to be Modestly Undervalued.
Key valuation signals for BOM:500331:
Return-on-Tangible-Equity: 29.00% (12% below median its 10-year median of 32.88)
GF Value™: ₹1,717.07 vs. price of ₹1,552.30 (9.6% below fair value)
Industry Position: 404.8% above the Chemicals median (#75 of 1570)
No single metric tells the full story. See the BOM:500331 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pidilite Industries Ltd manufactures and sells paints, adhesives, and sealants in two segments based on the customer: The Branded Consumer & Bazaar segment, which generates the majority of revenue, sells adhesives and sealants, construction and paint chemicals, art and craft materials, and others. These products are widely used by carpenters, painters, plumbers, mechanics, households, students, offices, etc. The Business to Business segment sells industrial products such as industrial adhesives, resins, and organic pigments and preparations, etc., and caters to various industries like packaging, joineries, textiles, paints, printing inks, paper, leather, etc. Pidilite Industries sells its products through dealers and distribution networks. The vast majority of its revenue comes from India.
98GF Score
Get the complete analysis for BOM:500331
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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