Pidilite Industries vs Asian Paints Which Is More Profitable?

Pidilite Industries and Asian Paints are two leading players in the Indian paint and adhesive industry. Pidilite Industries is known for its diverse product portfolio, including popular brands like Fevicol and Dr. Fixit, while Asian Paints is a market leader in the decorative paint segment. Both companies have shown strong growth in recent years, but their stock performances have differed. Investors may want to consider factors like market dynamics, financials, and growth potential before making investment decisions in these stocks.

Pidilite Industries or Asian Paints?

When comparing Pidilite Industries and Asian Paints, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Pidilite Industries and Asian Paints.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Pidilite Industries has a dividend yield of 0.5%, while Asian Paints has a dividend yield of 1.35%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Pidilite Industries reports a 5-year dividend growth of 12.89% year and a payout ratio of 0.00%. On the other hand, Asian Paints reports a 5-year dividend growth of 24.29% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Pidilite Industries P/E ratio at 84.71 and Asian Paints's P/E ratio at 50.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Pidilite Industries P/B ratio is 18.59 while Asian Paints's P/B ratio is 12.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Pidilite Industries has seen a 5-year revenue growth of 0.75%, while Asian Paints's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Pidilite Industries's ROE at 22.85% and Asian Paints's ROE at 24.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹3135.05 for Pidilite Industries and ₹2354.00 for Asian Paints. Over the past year, Pidilite Industries's prices ranged from ₹2488.10 to ₹3415.00, with a yearly change of 37.25%. Asian Paints's prices fluctuated between ₹2354.00 and ₹3422.95, with a yearly change of 45.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.