🟢 At a Glance

Pidilite Industries Ltd — India’s king of glue, adhesives, and your school projects — just got stuck in a real mess.

🧾 ₹97.88 lakh GST penalty confirmed by the appellate authority
🚨 Related to FY2017–2020 and non-payment of CGST under Rule 88C
📍 Registered office: Nariman Point, Mumbai
Signed by: Manisha Shetty, Company Secretary (not “Nisha Ltd”, bro)
So yes — even Fevicol couldn’t hold Pidilite’s tax filings together this time.

🏢 About the Company

Pidilite Industries is the homegrown adhesive giant behind:

• Fevicol (wood glue)
• FeviKwik (super glue)
• Dr. Fixit (waterproofing)
• M-Seal, Roff, Hobby Ideas (art/craft/home)

With 60+ years of dominance, it’s the poster child of brand recall in India. But even legends make mistakes…

🧑‍💼 Key Managerial Personnel (KMP)

💸 What Was the Penalty?

• Amount: ₹97,88,383 (CGST + interest + penalty)
• Years: FY 2017–18, 2018–19, 2019–20
• Nature: Mismatch of liabilities under Rule 88C(1)
• Authority passed the final order on 29 May 2025

🧾 Rule 88C (Translation for Humans)

If you under-report GST liabilities in your return compared to portal records, the department sends you a notice. And if you don’t fix it or pay up — it gets ugly.

In short: “Apka maths galat nikla. Ab paisa do.”

📉 Does This Hit Financials?

Not really. Here’s a snapshot of Pidilite’s FY24 financials:

A ₹98 lakh penalty is just 0.006% of revenue. Not material.
But it raises 🟠 compliance questions for a company this big.

🧮 Forward-Looking FV Estimate

With adhesives and waterproofing still dominating the market, let’s project:

• FY25E EPS: ₹33–₹36
• Assign P/E range: 60–65× (premium FMCG-type valuation)

🎯 Fair Value Range: ₹1,980 – ₹2,340/share

CMP: ₹2,140 (as of June 4, 2025)
Fevicol ain’t breaking down anytime soon — unless GST notices pile up.

🔍 EduInvesting Take

“For a company that sells glue, they really let this tax return slip.”

This isn’t a red flag. It’s a yellow sticky note saying “Hire better accountants.”
The business is still robust, the moat is wide, and Fevicol memes remain intact.

But damn — even Fevikwik couldn’t fix a ₹98 lakh mismatch?

🚨 Risks & Red Flags

• Rule 88C is a system-generated mismatch — likely recurring unless addressed
• FY2021–24 scrutiny next? This was just till 2020
• Doesn’t dent financials, but repeat errors may raise governance concerns

📊 Edu Scorecard

Author: Prashant Marathe
Date: June 4, 2025
Tags: Pidilite Industries, GST penalty, Fevicol, DRC-07, Rule 88C, tax compliance, EduInvesting