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Last Updated on: 26 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 500820 | NSE: ASIANPAINT

Asian Paints Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 9:09 pm

Market Cap 2,19,100 Cr.
Current Price 2,284
High / Low 3,423/2,265
Stock P/E46.6
Book Value 188
Dividend Yield1.46 %
ROCE37.5 %
ROE31.4 %
Face Value 1.00
PEG Ratio4.61

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Asian Paints Ltd

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sirca Paints India Ltd 1,765 Cr. 322 444/28238.0 59.10.45 %24.0 %17.9 % 10.0
Shalimar Paints Ltd 1,092 Cr. 130 226/97.0 41.40.00 %12.6 %20.2 % 2.00
Kansai Nerolac Paints Ltd 21,281 Cr. 263 357/25234.8 69.80.95 %16.6 %12.8 % 1.00
Berger Paints India Ltd 51,734 Cr. 444 630/43845.2 48.00.79 %27.5 %23.5 % 1.00
Akzo Nobel India Ltd 15,832 Cr. 3,484 4,674/2,26536.4 3132.15 %42.3 %32.3 % 10.0
Industry Average51,800.67 Cr1,154.5040.20119.880.97%26.75%23.02%4.17

All Competitor Stocks of

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales5,5857,0968,5277,8938,6078,4588,6378,7879,1828,4799,1038,7318,970
Expenses4,6746,1926,9856,4497,0517,2307,0256,9237,0616,7627,0477,0397,276
Operating Profit9119041,5421,4431,5561,2281,6111,8652,1211,7162,0561,6911,694
OPM %16%13%18%18%18%15%19%21%23%20%23%19%19%
Other Income9014887-2688118122104228194186212193
Interest21242723293541394651545455
Depreciation201203208205208216214220198209220226228
Profit before tax7798261,3941,1891,4071,0941,4781,7102,1051,6511,9681,6241,604
Tax %26%27%26%26%26%27%26%26%25%25%25%21%26%
Net Profit5746051,0318741,0368041,0971,2581,5751,2321,4751,2751,187
EPS in Rs5.936.2110.598.8710.608.1611.1812.8716.1612.5715.0913.1012.20

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales10,50412,22013,61514,27115,06216,82519,24020,21121,71329,10134,48935,49535,282
Expenses8,76710,21711,37211,54612,06813,62115,47516,05416,85724,29828,22927,91028,125
Operating Profit1,7372,0042,2432,7252,9943,2043,7654,1574,8564,8046,2607,5857,157
OPM %17%16%16%19%20%19%20%21%22%17%18%21%20%
Other Income114124142213338336274355332296431821786
Interest4248424937411101029295144205215
Depreciation155246266276335360622780791816858853882
Profit before tax1,6551,8342,0772,6142,9603,1383,3063,6294,3044,1885,6897,3486,846
Tax %30%31%31%32%32%33%33%24%26%26%26%24%
Net Profit1,1601,2631,4271,8032,0162,0982,2082,7743,2073,0854,1955,5585,170
EPS in Rs11.6112.7114.5418.1920.2221.2622.4828.2032.7331.5942.8156.9252.96
Dividend Payout %40%42%42%41%51%41%47%43%55%61%60%58%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)8.88%12.98%26.35%11.81%4.07%5.24%25.63%15.61%-3.80%35.98%32.49%
Change in YoY Net Profit Growth (%)0.00%4.11%13.36%-14.54%-7.75%1.18%20.39%-10.02%-19.41%39.78%-3.49%

Asian Paints Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:13%
3 Years:18%
TTM:-1%
Compounded Profit Growth
10 Years:16%
5 Years:21%
3 Years:20%
TTM:-8%
Stock Price CAGR
10 Years:12%
5 Years:5%
3 Years:-11%
1 Year:-33%
Return on Equity
10 Years:28%
5 Years:28%
3 Years:28%
Last Year:31%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:49 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital96969696969696969696969696
Reserves3,2883,9434,6466,4297,5088,3149,37510,03412,71013,71615,89618,63217,928
Borrowings2512494183235605331,3201,1181,0931,5871,9332,4742,516
Other Liabilities3,1493,7873,7543,7114,2414,8205,4594,8896,4567,5607,8548,6988,934
Total Liabilities6,7848,0758,91410,55912,40513,76316,24916,13820,35522,95825,77929,90129,474
Fixed Assets2,4412,5622,6603,4163,3043,7326,4976,2725,8595,5195,7707,1477,879
CWIP59721961072581,4052101401834261,0202,6982,272
Investments2961,4241,5882,7122,6522,1412,5692,0194,7373,2484,2624,5883,695
Other Assets3,9894,0194,4714,3246,1926,4856,9747,7079,57713,76514,72815,46815,629
Total Assets6,7848,0758,91410,55912,40513,76316,24916,13820,35522,95825,77929,90129,474

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,1871,4021,1882,2431,5272,1132,4703,0383,6839864,1936,104
Cash from Investing Activity +-463-586-465-866-681-1,556-918-518-541-317-1,282-2,548
Cash from Financing Activity +-601-626-576-849-756-1,379-1,117-2,871-650-1,808-2,140-2,982
Net Cash Flow12319014752890-822434-3512,492-1,138771573

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-250.00-247.00-416.00-321.00-558.00-530.002.003.003.003.005.005.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days343332303538363244494950
Inventory Days122121123108138117119127134142121122
Days Payable961028484101959080119967179
Cash Conversion Cycle605270547260657959949993
Working Capital Days131120213532304346696662
ROCE %47%45%42%42%38%36%33%33%34%29%34%38%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters52.63%52.63%52.63%52.63%52.63%52.63%52.63%52.63%52.63%52.63%52.63%52.63%
FIIs20.48%19.45%18.51%18.56%18.11%17.02%17.48%17.65%17.32%15.89%15.27%15.28%
DIIs7.15%7.57%8.42%8.74%9.16%9.96%10.01%10.01%10.52%11.61%12.30%13.10%
Government0.04%0.04%0.04%0.04%0.04%0.05%0.05%0.05%0.06%0.06%0.06%0.06%
Public19.68%20.29%20.37%19.99%20.02%20.32%19.82%19.64%19.44%19.78%19.68%18.88%
Others0.02%0.02%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.06%0.05%
No. of Shareholders7,12,2619,46,87610,11,4479,11,6809,79,33110,82,6509,97,4559,85,2169,75,31911,05,32611,11,6019,75,807

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF8,192,5541.232389.818,192,5542024-12-240%
SBI BSE Sensex ETF5,889,6091.451718.188,192,5542024-12-24-28.11%
UTI Nifty 50 ETF2,367,6331.23690.658,192,5542024-12-24-71.1%
UTI BSE Sensex ETF2,155,2221.45628.748,192,5542024-12-24-73.69%
UTI Flexi Cap Fund1,337,3361.52390.118,192,5542024-12-24-83.68%
Nippon India ETF Nifty 50 BeES1,242,5941.23362.478,192,5542024-12-24-84.83%
SBI Blue Chip Fund1,100,0000.65320.888,192,5542024-12-24-86.57%
UTI Nifty 50 Index Fund776,8621.24226.618,192,5542024-12-24-90.52%
ICICI Prudential Nifty 50 ETF737,1201.23215.028,192,5542024-12-24-91%
HDFC Index Nifty 50 Plan - Regular Plan702,2331.23204.848,192,5542024-12-24-91.43%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)56.9542.8331.5932.7328.20
Diluted EPS (Rs.)56.9442.8231.5932.7328.20
Cash EPS (Rs.)65.4551.7040.3441.3836.53
Book Value[Excl.RevalReserv]/Share (Rs.)202.50171.45148.03137.92109.82
Book Value[Incl.RevalReserv]/Share (Rs.)202.50171.45148.03137.92109.82
Revenue From Operations / Share (Rs.)370.05359.56303.39226.36210.71
PBDIT / Share (Rs.)86.2569.2954.0453.7846.56
PBIT / Share (Rs.)77.3660.3445.5345.5338.42
PBT / Share (Rs.)75.2258.3343.3344.5837.36
Net Profit / Share (Rs.)56.5542.7631.8333.1328.39
NP After MI And SOA / Share (Rs.)56.9242.8131.5932.7328.20
PBDIT Margin (%)23.3019.2717.8123.7522.09
PBIT Margin (%)20.9016.7815.0020.1118.23
PBT Margin (%)20.3216.2214.2819.6917.72
Net Profit Margin (%)15.2811.8910.4914.6313.47
NP After MI And SOA Margin (%)15.3811.9010.4114.4513.38
Return on Networth / Equity (%)29.1525.6721.9424.5126.70
Return on Capital Employeed (%)34.6332.3328.3330.2331.30
Return On Assets (%)18.2415.9113.1815.4116.74
Total Debt / Equity (X)0.050.060.050.020.03
Asset Turnover Ratio (%)1.271.411.341.101.15
Current Ratio (X)2.062.092.002.031.73
Quick Ratio (X)1.371.311.191.390.95
Inventory Turnover Ratio (X)2.622.803.272.622.82
Dividend Payout Ratio (NP) (%)46.3746.4857.4410.2364.35
Dividend Payout Ratio (CP) (%)40.1138.4545.258.1749.94
Earning Retention Ratio (%)53.6353.5242.5689.7735.65
Cash Earning Retention Ratio (%)59.8961.5554.7591.8350.06
Interest Coverage Ratio (X)40.3246.0154.3356.3043.64
Interest Coverage Ratio (Post Tax) (X)27.4429.7334.2135.6827.66
Enterprise Value (Cr.)273706.83265479.52295900.32243477.40159830.67
EV / Net Operating Revenue (X)7.717.7010.1711.217.91
EV / EBITDA (X)33.0839.9457.0847.2035.79
MarketCap / Net Operating Revenue (X)7.697.6810.1611.217.91
Retention Ratios (%)53.6253.5142.5589.7635.64
Price / BV (X)14.5816.5621.4019.0015.78
Price / Net Operating Revenue (X)7.697.6810.1611.217.91
EarningsYield0.020.010.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Asian Paints Ltd as of December 26, 2024 is: 2,791.05

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 26, 2024, Asian Paints Ltd is Undervalued by 22.20% compared to the current share price 2,284.00

Intrinsic Value of Asian Paints Ltd as of December 26, 2024 is: 3,073.04

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 26, 2024, Asian Paints Ltd is Undervalued by 34.55% compared to the current share price 2,284.00

Last 5 Year EPS CAGR: 10.10%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 37.58%, which is a positive sign.
  2. The company has higher reserves (10,186.08 cr) compared to borrowings (1,105.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (21.00 cr) and profit (3.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 37.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 71.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Asian Paints Ltd:
    1. Net Profit Margin: 15.28%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 34.63% (Industry Average ROCE: 26.75%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 29.15% (Industry Average ROE: 23.02%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 27.44
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.37
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 46.6 (Industry average Stock P/E: 40.2)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.05
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Asian Paints Ltd. is a Public Limited Listed company incorporated on 24/10/1945 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24220MH1945PLC004598 and registration number is 004598. Currently Company is involved in the business activities of Manufacture of paints and varnishes, enamels or lacquers. Company’s Total Operating Revenue is Rs. 25188.51 Cr. and Equity Capital is Rs. 95.92 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paints/Varnishes6A, Shantinagar, Santacruz East, Mumbai Maharashtra 400055investor.relations@asianpaints.com
http://www.asianpaints.com
Management
NamePosition Held
Mr. R SeshasayeeChairman & Ind.Director
Mr. Manish ChoksiVice Chairman & Non Exe.Dire
Mr. Amit SyngleManaging Director & CEO
Mr. Malav DaniNon Executive Director
Ms. Amrita VakilNon Executive Director
Mr. Jigish ChoksiNon Executive Director
Ms. Nehal VakilNon Executive Director
Mr. Milind SarwateIndependent Director
Ms. Ireena VittalIndependent Director
Mr. Soumitra BhattacharyaIndependent Director
Dr. Gopichand KatragaddaIndependent Director

FAQ

What is the latest intrinsic value of Asian Paints Ltd?

The latest intrinsic value of Asian Paints Ltd as on 26 December 2024 is ₹2791.05, which is 22.20% higher than the current market price of ₹2,284.00. The stock has a market capitalization of 2,19,100 Cr. and recorded a high/low of 3,423/2,265 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹17,928 Cr and total liabilities of ₹29,474 Cr.

What is the Market Cap of Asian Paints Ltd?

The Market Cap of Asian Paints Ltd is 2,19,100 Cr..

What is the current Stock Price of Asian Paints Ltd as on 26 December 2024?

The current stock price of Asian Paints Ltd as on 26 December 2024 is 2,284.

What is the High / Low of Asian Paints Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Asian Paints Ltd stocks is 3,423/2,265.

What is the Stock P/E of Asian Paints Ltd?

The Stock P/E of Asian Paints Ltd is 46.6.

What is the Book Value of Asian Paints Ltd?

The Book Value of Asian Paints Ltd is 188.

What is the Dividend Yield of Asian Paints Ltd?

The Dividend Yield of Asian Paints Ltd is 1.46 %.

What is the ROCE of Asian Paints Ltd?

The ROCE of Asian Paints Ltd is 37.5 %.

What is the ROE of Asian Paints Ltd?

The ROE of Asian Paints Ltd is 31.4 %.

What is the Face Value of Asian Paints Ltd?

The Face Value of Asian Paints Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Asian Paints Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE