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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Asian Paints Ltd

About the Company - Asian Paints Ltd

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. Deepak SatwalekarChairman & Ind.Director
Mr. Manish ChoksiVice Chairman & Non Exe.Dire
Mr. Amit SyngleManaging Director & CEO
Mr. Jigish ChoksiNon Executive Director
Mr. Malav DaniNon Executive Director
Ms. Amrita VakilNon Executive Director
Mr. Ashwin DaniNon Executive Director
Ms. Nehal VakilNon Executive Director
Mr. Suresh NarayananIndependent Director
Mrs. Pallavi ShroffIndependent Director
Mr. Milind SarwateIndependent Director
Mr. R SeshasayeeIndependent Director
Mrs. Vibha Paul RishiIndependent Director

Asian Paints Ltd. Share Price Update

Share PriceValue
Today₹3,018.55
Previous Day₹2,999.95

Basic Stock Data of Asian Paints Ltd

Market Cap 2,87,409 Cr.
Current Price 2,996
High / Low3,568/2,700
Stock P/E52.7
Book Value 173
Dividend Yield0.85 %
ROCE34.4 %
ROE27.7 %
Face Value 1.00

Data Source: screener.in

Competitors of Asian Paints Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Berger Paints India Ltd 66,646 Cr. 572680/45858.9 41.50.47 %23.8 %20.4 % 1.00
Shalimar Paints Ltd 1,645 Cr. 196226/133 37.90.00 %4.00 %10.3 % 2.00
Kansai Nerolac Paints Ltd 24,809 Cr. 307357/24738.2 65.70.58 %14.5 %10.7 % 1.00
Sirca Paints India Ltd 2,023 Cr. 369444/28841.8 52.10.40 %25.3 %18.8 % 10.0
Industry Average23.25 Cr36134.7349.30.36%16.9%15.05%3.5

Asian Paints Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6,7886,6515,5857,0968,5277,8938,6078,4588,6378,7879,1828,4799,103
Expenses5,0015,3334,6746,1926,9856,4497,0517,2307,0256,9237,0616,7627,047
Operating Profit1,7881,3189119041,5421,4431,5561,2281,6111,8652,1211,7162,056
OPM %26%20%16%13%18%18%18%15%19%21%23%20%23%
Other Income123819014887-2688118122104228194186
Interest21302124272329354139465154
Depreciation193213201203208205208216214220198209220
Profit before tax1,6971,1567798261,3941,1891,4071,0941,4781,7102,1051,6511,968
Tax %25%25%26%27%26%26%26%27%26%26%25%25%25%
Net Profit1,2658705746051,0318741,0368041,0971,2581,5751,2321,475
EPS in Rs12.918.885.936.2110.598.8710.608.1611.1812.8716.1612.5715.09

Asian Paints Ltd Quarterly Chart

Asian Paints Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9,23110,50412,22013,61514,27115,06216,82519,24020,21121,71329,10134,48935,085
Expenses7,7208,76710,21711,37211,54612,06813,62115,47516,05416,85724,29828,22927,771
Operating Profit1,5111,7372,0042,2432,7252,9943,2043,7654,1574,8564,8046,2607,314
OPM %16%17%16%16%19%20%19%20%21%22%17%18%21%
Other Income107114124142213338336274355332296431648
Interest434248424937411101029295144177
Depreciation121155246266276335360622780791816858841
Profit before tax1,4541,6551,8342,0772,6142,9603,1383,3063,6294,3044,1885,6896,944
Tax %30%30%31%31%32%32%33%33%24%26%26%26%
Net Profit1,0211,1601,2631,4271,8032,0162,0982,2082,7743,2073,0854,1955,163
EPS in Rs10.3111.6112.7114.5418.1920.2221.2622.4828.2032.7331.5942.8152.78
Dividend Payout %39%40%42%42%41%51%41%47%43%55%61%60%

Asian Paints Ltd Profit & Loss Yearly Chart

Asian Paints Ltd Growth

Compounded Sales Growth
10 Years:13%
5 Years:15%
3 Years:20%
TTM:6%
Compounded Profit Growth
10 Years:14%
5 Years:15%
3 Years:15%
TTM:43%
Stock Price CAGR
10 Years:20%
5 Years:17%
3 Years:8%
1 Year:8%
Return on Equity
10 Years:27%
5 Years:26%
3 Years:26%
Last Year:28%

Asian Paints Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital96969696969696969696969696
Reserves2,6533,2883,9434,6466,4297,5088,3149,37510,03412,71013,71615,89616,466
Borrowings3412512494183235605331,3201,1181,0931,5871,9332,327
Other Liabilities2,6233,1493,7873,7543,7114,2414,8205,4594,8896,4567,5607,8548,533
Total Liabilities5,7126,7848,0758,91410,55912,40513,76316,24916,13820,35522,95825,77927,422
Fixed Assets1,3012,4412,5622,6603,4163,3043,7326,4976,2725,8595,5195,7706,303
CWIP61759721961072581,4052101401834261,0201,999
Investments3552961,4241,5882,7122,6522,1412,5692,0194,7373,2484,2624,641
Other Assets3,4403,9894,0194,4714,3246,1926,4856,9747,7079,57713,76514,72814,478
Total Assets5,7126,7848,0758,91410,55912,40513,76316,24916,13820,35522,95825,77927,422

Asian Paints Ltd Reserves and Borrowings Chart

Asian Paints Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 7101,1871,4021,1882,2431,5272,1132,4703,0383,6839864,193
Cash from Investing Activity -386-463-586-465-866-681-1,556-918-518-541-317-1,282
Cash from Financing Activity -327-601-626-576-849-756-1,379-1,117-2,871-650-1,808-2,140
Net Cash Flow-212319014752890-822434-3512,492-1,138771

Asian Paints Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days313433323035383632444949
Inventory Days118122121123108138117119127134142121
Days Payable989610284841019590801199671
Cash Conversion Cycle516052705472606579599499
Working Capital Days111311202135323043466966
ROCE %51%47%45%42%42%38%36%33%33%34%29%34%

Asian Paints Ltd Financial Efficiency Indicators Chart

Asian Paints Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters52.79%52.79%52.79%52.79%52.63%52.63%52.63%52.63%52.63%52.63%52.63%52.63%
FIIs21.13%20.38%20.72%20.96%20.48%19.45%18.51%18.56%18.11%17.02%17.48%17.65%
DIIs7.02%7.27%7.26%6.84%7.15%7.57%8.42%8.74%9.16%9.96%10.01%10.01%
Government0.08%0.08%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.05%0.05%0.05%
Public18.98%19.48%19.18%19.35%19.68%20.29%20.37%19.99%20.02%20.32%19.82%19.64%
Others0.00%0.00%0.00%0.02%0.02%0.02%0.04%0.04%0.04%0.04%0.04%0.04%
No. of Shareholders3,52,9054,99,1854,92,8675,77,1537,12,2619,46,87610,11,4479,11,6809,79,33110,82,6509,97,4559,85,216

Asian Paints Ltd Shareholding Pattern Chart

No. of Asian Paints Ltd Shareholders

Asian Paints Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF81625601.42414.36
SBI S&P BSE Sensex ETF57736941.631707.86
UTI Nifty 50 ETF22603821.4668.59
SBI Blue Chip Fund21000001.44621.15
UTI S&P BSE Sensex ETF19915121.63589.09
UTI Flexi Cap Fund13954711.64412.76
SBI Arbitrage Opportunities Fund10344001.15305.96
Nippon India ETF Nifty 50 BeES9638491.4285.09
UTI Nifty 50 Index Fund7261121.4214.77
UTI Large Cap Fund5652781.38167.2

Asian Paints Ltd ROCE Trend

Asian Paints Ltd EPS Trend

Asian Paints Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)42.8331.5932.7328.2022.48
Diluted EPS (Rs.)42.8231.5932.7328.2022.48
Cash EPS (Rs.)51.7040.3441.3836.5329.08
Book Value[Excl.RevalReserv]/Share (Rs.)171.45148.03137.92109.82102.50
Book Value[Incl.RevalReserv]/Share (Rs.)171.45148.03137.92109.82102.50
Revenue From Operations / Share (Rs.)359.56303.39226.36210.71200.59
PBDIT / Share (Rs.)69.2954.0453.7846.5641.69
PBIT / Share (Rs.)60.3445.5345.5338.4235.20
PBT / Share (Rs.)58.3343.3344.5837.3634.10
Net Profit / Share (Rs.)42.7631.8333.1328.3922.59
NP After MI And SOA / Share (Rs.)42.8131.5932.7328.2022.48
PBDIT Margin (%)19.2717.8123.7522.0920.78
PBIT Margin (%)16.7815.0020.1118.2317.54
PBT Margin (%)16.2214.2819.6917.7217.00
Net Profit Margin (%)11.8910.4914.6313.4711.26
NPAfterMIMargin11.9010.4114.4513.3811.20
RONW25.6721.9424.5126.7022.76
ROCE32.3328.3330.2331.3030.42
Return On Assets (%)15.9113.1815.4116.7413.24
DebtEquity0.060.050.020.030.06
AssetTurnover1.321.251.101.151.19
Current Ratio (X)2.092.002.031.731.47
Quick Ratio (X)1.311.191.390.950.86
InventoryTurnoverRatio2.583.052.622.823.30
DividendPayoutNP46.4857.4410.2364.3539.59
DividendPayoutCP38.4545.258.1749.9430.72
EarningRetention53.5242.5689.7735.6560.41
CashEarningRetention61.5554.7591.8350.0669.28
InterestCoverage46.0154.3356.3043.6437.98
InterestCoveragePostTax29.7334.2135.6827.6621.64
EnterpriseValue265479.52295900.32243477.40159830.67143635.01
EVPerNetSales7.7010.1711.217.917.47
EVPerEBITDA39.9457.0847.2035.7935.92
MarketCapPerSales7.6810.1611.217.917.44
RetentionRatios53.5142.5589.7635.6460.40
PriceToBV16.5621.4019.0015.7815.11
PriceToSales7.6810.1611.217.917.44
EarningsYield0.010.010.010.010.01

Asian Paints Ltd Profitability Ratios (%)

Asian Paints Ltd Liquidity Ratios

Asian Paints Ltd Liquidity Ratios (%)

Asian Paints Ltd Interest Coverage Ratios (%)

Asian Paints Ltd Valuation Ratios

Fair Value of Asian Paints Ltd Stock

Fair Value: ₹2546.90

The stock is overvalued by 14.99% compared to the current price ₹2996

*Investments are subject to market risks

Strength and Weakness of Asian Paints Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 38.67%, which is a positive sign.
  2. The company has higher reserves (8,844.46 cr) compared to borrowings (927.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (19.00 cr) and profit (2.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 45.00 and average Dividend Yield of 17.53%.
  2. The stock has a high average Working Capital Days of 33.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 67.92, which may not be favorable.

Should I Buy Asian Paints Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Asian Paints Ltd:
    1. Net Profit Margin: 11.89%
      • 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: N/A% (Industry Average ROCE: 16.9%)
      • 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. Interest Coverage Ratio (Post Tax): N/A
      • 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.
    4. Quick Ratio: 1.31
      • 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.
    5. ✗ Stock P/E of 52.9 (Industry average Stock P/E: 34.15)
      • 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.
    6. ✗ Total Debt / Equity: N/A
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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