| Author |
Message |
surjeetk21
Groupie
Joined: 18/Nov/2009
Location: India
Online Status: Offline
Posts: 56
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   Posted: 18/Apr/2010 at 2:07pm |
HI
does any one feel that pidilite industries qualify for a good moat.
i have these details with me.
| PIDILITE INDUSTRIES |
2009/03 |
2008/03 |
2007/03 |
2006/03 |
2005/03 |
| RONW |
22.15 |
28.77 |
23.42 |
20.11 |
20.24 |
| ROCE |
16.88
|
21.04 |
25.17 |
27.63 |
|
| BOOK VALUE |
28.99 |
25.27 |
19.33 |
16.34 |
141.62 |
| VAR % |
14.7 |
30.7 |
18.3 |
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| |
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| EPS |
5.78 |
7.43 |
4.74 |
3.51 |
28.91 |
| VAR % |
-22.2 |
56.8 |
35.0 |
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| Sales |
1,765.78 |
1,535.31 |
1,154.98 |
908.05 |
768.39 |
| Var % |
15.01 |
32.93 |
27.19 |
18.18 |
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pls suggest if any one knows more abt it.
Edited by surjeetk21 - 18/Apr/2010 at 2:09pm
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
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Posted: 18/Apr/2010 at 3:54pm |
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A big indicator of a good moat is high gross margin. If you can put that up in comparision to its peers it should be interesting.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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surjeetk21
Groupie
Joined: 18/Nov/2009
Location: India
Online Status: Offline
Posts: 56
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Posted: 19/Apr/2010 at 3:48pm |
ihave got this details from moneycontrol about gross margin.
| Year |
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Mar '06
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Mar '07
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Mar '08
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Mar '09
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17.36
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16.93
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15.57
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14.57
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11.29
| basant sir,
pls tell ur views now.
with regards
surjeet
Edited by surjeetk21 - 19/Apr/2010 at 3:53pm
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surjeetk21
Groupie
Joined: 18/Nov/2009
Location: India
Online Status: Offline
Posts: 56
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Posted: 19/Apr/2010 at 4:21pm |
the comparision of various competetiors of pidilite in terms of gross profit margin is as under
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| Year |
|
Mar '06 |
Mar '07 |
Mar '08 |
Mar '09
|
| pidilite |
17.36 |
16.93 |
15.57 |
14.57 |
11.29
|
| tata chemicals |
|
18.57 |
18.54 |
13.33 |
10.06
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| united phosphorous |
|
17.46 |
14.75 |
2.47 |
10.09
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| boc india |
|
18.48 |
14.81 |
16.17 |
6.91
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| himadri chem |
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19.82 |
28.48 |
31.07 |
25.39
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| guj flouro chem |
|
25.81 |
57.59 |
50.52 |
55.42
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| BASF |
|
13.12 |
12.22 |
10.44 |
9.51
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| guj alkali |
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37.19 |
33.92 |
21.61 |
19.27
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pls give ur suggetion.
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 19/Apr/2010 at 7:54pm |
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I think that the numbers are not correct. Money control does not calculate Gross margin as contribution but as operating margin and hence this comparison is not a clear picture. I think Pidilite should have a far higher Gross margin.
Edited by basant - 19/Apr/2010 at 7:55pm
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kannanravi1
Senior Member
Joined: 08/May/2007
Location: United States
Online Status: Offline
Posts: 609
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Posted: 19/Apr/2010 at 3:11am |
Originally posted by surjeetk21
HI
does any one feel that pidilite industries qualify for a good moat.
i have these details with me.
| PIDILITE INDUSTRIES |
2009/03 |
2008/03 |
2007/03 |
2006/03 |
2005/03 |
| RONW |
22.15 |
28.77 |
23.42 |
20.11 |
20.24 |
| ROCE |
16.88
|
21.04 |
25.17 |
27.63 |
|
| BOOK VALUE |
28.99 |
25.27 |
19.33 |
16.34 |
141.62 |
| VAR % |
14.7 |
30.7 |
18.3 |
|
|
| |
|
|
|
|
|
| EPS |
5.78 |
7.43 |
4.74 |
3.51 |
28.91 |
| VAR % |
-22.2 |
56.8 |
35.0 |
|
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| |
|
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|
|
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| |
|
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| Sales |
1,765.78 |
1,535.31 |
1,154.98 |
908.05 |
768.39 |
| Var % |
15.01 |
32.93 |
27.19 |
18.18 |
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pls suggest if any one knows more abt it.
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Hi Surjeet,
In my opinion, a high profit margin and high RONW are usually pretty good indicators of a wide moat. Pidilite is definitely a wide moat company. But never over pay, because if you do, though the company you buy may have a wide moat, your investment itself will not give you above average returns. Hope this helps..
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kannan
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funkyappu
Senior Member
Joined: 06/Jun/2009
Location: Angola
Online Status: Offline
Posts: 445
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Posted: 20/Apr/2010 at 1:46pm |
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Further, they have got into certain capex expansions..which is unfruitful in recent times.
Plus, their future growth now depends upon infra......which is cyclical.....
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surjeetk21
Groupie
Joined: 18/Nov/2009
Location: India
Online Status: Offline
Posts: 56
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Posted: 20/Apr/2010 at 2:12pm |
basant sir , i will try to find the correct Nos and post thereafter.
thanks amit and kannan for ur views.
Edited by surjeetk21 - 20/Apr/2010 at 2:51pm
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