ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Pidilite Industries ROE % Related Terms
Pidilite Industries ROE % Historical Data
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The historical data trend for Pidilite Industries's ROE % 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.
For the Specialty Chemicals subindustry, Pidilite Industries's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Pidilite Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Pidilite Industries's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Pidilite Industries (BOM:500331) has a ROE % of 21.39% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pidilite Industries and its competitors. This is near median its historical median of 23.33. Over the past decade, Pidilite Industries' ROE % has ranged from 18.70 to 28.05. According to the industry distribution chart, Pidilite Industries ranks #69 out of 1586 companies in the Chemicals industry, placing it in the top 4.4%.
Is Pidilite Industries' ROE % too high?
Pidilite Industries' current ROE % of 21.39% is near median its 10-year median of 23.33. Over the past 10 years, this metric has ranged from a low of 18.70 to a high of 28.05. The Chemicals industry median ROE % is 5.19. Pidilite Industries' value of 21.39% is 312.5% above this industry median. Based on the distribution chart, Pidilite Industries ranks #69 out of 1586 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 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pidilite Industries' ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Pidilite Industries ranks #69 out of 1586 companies for ROE %. This places Pidilite Industries in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 5.19. Pidilite Industries' value of 21.39% is 312.5% above this benchmark. Historically, Pidilite Industries' own ROE % has ranged from 18.70 to 28.05 over the past decade. While the company's 10-year median is 23.33 vs. the industry median of 5.19, 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 ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.19, based on 1,586 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pidilite Industries's current ROE % of 21.39% is 312.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pidilite Industries and its competitors. For the Chemicals industry, the median ROE % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pidilite Industries's current ROE % is 21.39%, which is near median its own 10-year median of 23.33. 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 Fairly Valued. The stock's GF Value™ is ₹1,701.53, compared to a current price of ₹1,595.80 — trading 6.2% below its estimated fair value. The current ROE % is 21.39%, which is near median its 10-year median of 23.33 and 312.5% above the Chemicals industry median of 5.19. Pidilite Industries' overall GF Score™ is 96/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Pidilite Industries (BOM:500331), the current ROE % is 21.39% 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 ₹1,595.80 is trading 6.2% below its estimated GF Value™ of ₹1,701.53.
GuruFocus considers Pidilite Industries to be Fairly Valued.
Key valuation signals for BOM:500331:
ROE %: 21.39% (near median its 10-year median of 23.33)
GF Value™: ₹1,701.53 vs. price of ₹1,595.80 (6.2% below fair value)
Industry Position: 312.5% above the Chemicals median (#69 of 1586)
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.
96GF Score
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