SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Talk to Advisor
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Asian Paints Ltd

BSE: 500820 NSE: ASIANPAINT ISIN: INE021A01026
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Paints

Snapshot

Q.1 Which industry/sub-sector does Asian Paints Ltd belong to?
Asian Paints Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Paints segment.
Q.2 Is Asian Paints Ltd a good quality company?
Asian Paints Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Asian Paints Ltd undervalued or overvalued?
Asian Paints Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 64.81 67.71
Price to Book 12.11 14.85
Price to Sales 7.2 7.90
EV to EBITDA 35.75 36.85
Q.4 Is Asian Paints Ltd a good buy now?
Asian Paints Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Asian Paints Ltd?
Asian Paints Ltd revenue growth is -4.5% for FY-2025, which is below its 5-year CAGR of 10.9%, indicating slower growth.

Q.2 Gross Profit margin of Asian Paints Ltd?
Asian Paints Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.2% for FY-2025, which is in line with its 5-year median of 15.8%, indicating stable margins.

Q.3 Operating Profit Margin of Asian Paints Ltd?
Asian Paints Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.71% for FY-2025, which is in line with its 5-year median of 18.33% indicating stable margins.

Q.4 Net Profit Margin of Asian Paints Ltd?
Asian Paints Ltd Net Profit Margin is 10.94% for FY-2025, is below its 5-year median of 12.16%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15.2 15.8
Operating Profit Margin (%) 17.71 18.33
Net Profit Margin (%) 10.94 12.16

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Asian Paints Ltd?
Asian Paints Ltd Return on Asset is 12.31%, which is below its 5-year historical median of 17.22%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Asian Paints Ltd?
Asian Paints Ltd Return on capital employed is 26.58% for FY-2025, which is below its 5-year historical median of 36.98%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Asian Paints Ltd?
Asian Paints Ltd Return on equity is 19.51% for FY-2025, which is below its 5-year historical median of 27.96%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Asian Paints Ltd?
Asian Paints Ltd Cash conversion cycle is 48 days, above its 5-year historical median of 45 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.39 1.54
ROE (%) 19.51 27.96
ROCE (%) 26.58 36.98
Cash Conversion Cycle 48 days 45 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Asian Paints Ltd?
Asian Paints Ltd Debt-to-Equity ratio is 0.04, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Asian Paints Ltd?
Asian Paints Ltd Debt to cash flow from operations is 0.2, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Asian Paints Ltd?

Q.1 Promoter shareholding and pledge status of Asian Paints Ltd?
Promoters hold 52.63% of the Asian Paints Ltd, with 9.85% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Asian Paints Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Asian Paints Ltd vs industry peers?
Asian Paints Ltd revenue CAGR is 10.90%, compared to the industry median CAGR of 10.90%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -4.5 10.9
Gross Profit Growth (%) -21.3 7.8
Operating Profit Growth (%) -20.8 7.6
Net Profit Growth (%) -33.3 6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.39 1.54
ROE (%) 19.51 27.96
ROCE (%) 26.58 36.98
Cash Conversion Cycle (days) 48.42 45

Valuation & price assessment

Q.1 Stock return of Asian Paints Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 10.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 10.5% -1.7% -5.6% 13%
Q.2 Valuation ratios of Asian Paints Ltd vs historical?
The current P/E ratio of 64.81 is in line with than its historical median of 67.71, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median		 5-year
Industry Median
Price to Earnings 64.81 67.71 50.53
Price to Book 12.11 14.85 8.05
Price to Sales 7.2 7.90 5.71
EV to EBITDA 35.75 36.85 32.09

Check more companies

1. Asian Paints
2. Solar Industries
3. Pidilite Inds.

Check trending companies

1. Granules India Ltd.
2. Nestle India Ltd.
3. National Aluminium Company Ltd.
4. Muthoot Finance Ltd.
5. Motilal Oswal Financial Services Ltd.
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×