Both the market and Pidilite have grown during last 3-5 years, and so has its competitive advantages. The market cap of Pidilite tripled in last 5 years. With the benefit of hindsight, now we can say that Pidilite was undervalued 5 years back, even though it was quoting at high PE multiple back then.
What concerns us is whether we can still make the same statement 5 years later. Its result has been good, but it seems already priced in. Which I take as not a good sign, and have reduced my position here to chase better opportunities.