Stock below Rs 200: Can this small-cap stock be the next Pidilite Industries?

Stock below Rs 200: Can this small-cap stock be the next Pidilite Industries?

Karan Dsij
/ Categories: Trending, Mindshare

Coming back to markets, on the cricket field, or in any walk of life, it’s rare to find the carbon copy or person with a similar skill set but sometimes you do

Former Team India Head Coach Ravi Shastri had special praise for former India Capitan MS Dhoni. He had said, “MS Dhoni was unreal. I have never seen a guy like him in my life. Whether he makes a zero or a hundred or lifts a World Cup or gets knocked out in the first round, it never mattered to him." I’m sure everyone would nod their head in affirmation that he was one of the best captains in cricketing history and it’s hard to find a rare gem pretty soon. 

At this point, you must be wondering, are we reading a cricketing post or a stock market-related post?! It’s indeed a stock market-related post but just to draw an analogy, I’m still not able to sink in that great nail-biter win of the Indian men’s cricket team with Pakistan. Hence, the cricket element! Coming back to markets, on the cricket field, or in any walk of life, it’s rare to find the carbon copy or person with a similar skill set but sometimes you do, and as the quote goes, “When opportunity knocks on your door, always be willing to take a chance, because you never know how perfect something could turn out to be.” 

So, talking about stocks, we all know about Pidilite Industries. It has been a wonderful wealth creator for its shareholders. There is one more stock, which is making the round on D-Street as this could be the next Pidilite Industries. The name of the stock is Nikhil Adhesives

With more than three decades of industry experience, Nikhil Adhesives (Nikhil) is one of the recognised players in speciality chemicals and industrial emulsions & adhesives with a strong domestic presence catering to PAN India with an excellent distribution network. Leveraging its well-equipped manufacturing infrastructure, the company has a result-oriented research & development team. 

Here are some of the strengths of Nikhil Adhesives: 

·        Well-equipped manufacturing infrastructure 

·        Rich history of more than 30 years 

·        Strong domestic network (PAN-India distribution) 

·        Manufacturing units in the North, West, and South of India. 

Going forward, these are the opportunities for the company: 

·        New opportunity areas with huge potential for growth such as construction chemicals and consumer products. 

Here is a comparison of the stocks between Pidilite Industries and Nikhil Adhesives

Name of stock 

Pidilite Inds 

Nikhil Adhesives 

5-year PE 

61.74 

11.13 

Six-month returns in % 

7.55 

79.94 

Twelve-month returns in % 

15.64 

138.64 

36-month returns in % 

25.46 

132.7 

60-month returns in % 

27.38 

64.94 

RoE 3-year in % 

22.85 

28.35 

RoE in % 

20.23 

34.52 

Debtor days 

53 

65 

Cash conversion cycle 

96 

19 

  

Do you think in the coming years, old will be goldLike staying invested in Pidilite Industries would be a perfect strategy or switching to Nikhil Adhesives would be a better option? Share in the comments section. 

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