Thread by @techlunatic

Atul, Pidilite, Alkyl amine, Fine Org and Aarti Ind have among the best margins in the sector.

https://twitter.com/techlunatic/status/1370644064740077568

Pidilite, Atul, Alkyl amines, FinOrg have among the best ROE.

Pidilite, Atul, Alkyl amine and FineOrg have among the lowest debt.

Pidilite, Aarti, Atul, Alkyl amines have cornered most of the sector's market cap.

Question : Does it imply that Pidilite must be making the largest revenues?

BASF makes the largest revenues and gets a relatively miniscule market cap

Reason? BASF's low margins (~2%) vs Pidilite's margins of 21%

Lesson : Revenues ain't everything. It is margins (i.e ability to convert revenues into shareholder wealth) that fetches premium valuations.