Is Asian Paints a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Asian Paints Ltd is a good quality company .

Is Asian Paints undervalued or overvalued?

The key valuation ratios of Asian Paints Ltd's currently when compared to its past seem to suggest it is in the Fair zone .

What is Asian Paints share price return in the past 10 years ?

Asian Paints Ltd share price has appreciated 21.3% annually (CAGR) over the past ten years.

Is Asian Paints a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Asian Paints Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

Asian Paints Ltd Stock Analysis

Item: Asian Paints Ltd
Rating: 5
Author: MoneyWorks4me Rating

BSE: 500820 | NSE: ASIANPAINT | Paints | Large Cap

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BSE Share Price 05-Jun-2023 18:01
3199.05 -36.10 (-1.12%)

10 Year X-Ray of Asian Paints:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ Value Creation Index Colour Code Guide ⓘ
	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
ROCE % ⓘ	29.9%	28.4%	28%	24.5%	22.5%	22.6%	25.9%	26%	21.5%	26.3%	-
Value Creation Index ⓘ	1.7	1.5	1.5	1.2	1.0	1.0	1.3	1.3	0.9	1.3	-

Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	12,715	14,183	14,271	15,168	16,887	19,350	20,263	21,713	29,101	34,489	34,489
YoY Gr. Rt. %	-	11.6%	0.6%	6.3%	11.3%	14.6%	4.7%	7.2%	34%	18.5%	-
Adj EPS ⓘ	12.7	14.4	18.1	19.8	20.5	22.4	28.1	32.5	31.3	43.3	42.8
YoY Gr. Rt. %	-	13.4%	25.3%	9.7%	3.6%	9.1%	25.4%	15.5%	-3.5%	38.3%	-
BVPS (₹) ⓘ	42.1	49.4	68	79.3	87.7	98.7	105.6	133.5	143.9	166.5	166.5
Adj Net Profit ⓘ	1,220	1,385	1,735	1,903	1,970	2,149	2,696	3,113	3,005	4,157	4,106
Cash Flow from Ops. ⓘ	1,402	1,188	2,243	1,527	2,113	2,470	3,038	3,683	986	4,193	-
Debt/CF from Ops. ⓘ	0.2	0.4	0.1	0.4	0.3	0.3	0.1	0.1	0.8	0.2	-

CAGR ⓘ CAGR Colour Code Guide ⓘ
	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	11.7%	15.4%	19.4%	18.5%
Adj EPS ⓘ	14.6%	16.1%	15.5%	38.3%
BVPS ⓘ	16.5	13.7	16.4	15.7
Share Price	21.3%	20.4%	25%	13.5%

Key Financial Parameters ⓘ Performance Ratio Colour Code Guide ⓘ
	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
Return on Equity % ⓘ	32.9	31.5	30.8	26.9	24.6	24	27.5	27.2	22.6	27.9	25.7
Op. Profit Mgn % ⓘ	15.9	15.8	19.5	19.7	19	19.5	20.5	22.4	16.5	18.3	18.2
Net Profit Mgn % ⓘ	9.9	10	12.3	13.1	11.7	11.2	13.4	14.5	10.5	12.3	11.9
Debt to Equity ⓘ	0.1	0.1	0.1	0.1	0.1	0.1	0	0	0.1	0.1	0
Working Cap Days ⓘ	87	89	83	89	105	104	105	114	116	119	170
Cash Conv. Cycle ⓘ	19	22	16	17	20	25	29	24	33	42	89

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 19.40%

Net Profit is growing at healthy rate in last 3 years 15.54%

Sales growth is good in last 4 quarters at 21.86%

Return on Equity has declined versus last 3 years average to 25.70%

Latest Financials - Asian Paints Ltd.

	Standalone	Consolidated
TTM EPS (₹)	42.8	42.8
TTM Sales (₹ Cr.)	30,078	34,489
BVPS (₹.) ⓘ	162.2	166.5
Reserves (₹ Cr.) ⓘ	15,463	15,870
P/BV ⓘ	19.72	19.23
PE ⓘ	74.84	74.75

From the Market
52 Week Low / High (₹)	2560.25 / 3590.00
All Time Low / High (₹)	2.73 / 3590.00
Market Cap (₹ Cr.)	3,06,852
Equity (₹ Cr.)	95.9
Face Value (₹)	1
Industry PE ⓘ	69.9

Management X-Ray of Asian Paints :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

10.67

9.44

9.03

7.92

7.64

11.08

10.99

10.63

7.62

7.41

* Pledged shares as % of Promoter's holding (%)

Valuation of Asian Paints

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Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Asian Paints

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

News

Asian Paints Ltd FAQs

What is the share price of Asian Paints ?

Company share prices are keep on changing according to the market conditions. The closing price of Asian Paints on 05-Jun-2023 18:01 is : 3,199.1.

What is the market cap of Asian Paints ?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 05-Jun-2023 18:01 the market cap of Asian Paints stood at ₹ 3,06,852.2.

What is the PE ratio of Asian Paints ?

The latest PE ratio of Asian Paints as of 05-Jun-2023 18:01 is 74.84.

What is the PB ratio of Asian Paints?

The latest PB ratio of Asian Paints as of 05-Jun-2023 18:01 is 19.72

What is the 52-week high and low of Asian Paints ?

The 52-week high of Asian Paints is ₹ 3,590 and the 52-week low is ₹ 2,560.3.

What is the TTM revenue of Asian Paints ?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Asian Paints is ₹ 30,078 ( Cr.) .

About Asian Paints Ltd

Asian Paints has come a long way since its small beginnings in 1942. It was set up as a partnership firm by four friends who were willing to take on the world’s biggest, most famous paint companies operating in India at that time. Over the course of 25 years, Asian Paints became a corporate force and India's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1967. Today, it is double the size of any other paint company in India.

The company also operates through ‘PPG Asian Paints Pvt Ltd’ (50:50 JV between Asian Paints and PPG Inc, USA, one of the largest automotive coatings manufacturer in the world) to service the increasing requirements of the Indian automotive coatings market. The second 50:50 JV with PPG named ‘Asian Paints PPG Pvt Ltd’ services the protective, industrial powder, industrial containers and light industrial coatings markets in India. Vertical integration has seen Asian Paints diversify into chemical products such as Phthalic Anhydride and Pentaerythritol, which are used in the paint manufacturing process. The company has discontinued production of Phthalic Anhydride from end of July 2017. Today, the Asian Paints group operates in several countries across the world across four regions viz. Asia, Middle East, South Pacific and Africa through the eight corporate brands viz. Asian Paints, Asian Paints Berger, SCIB Paints, Apco Coatings, Taubmans, Causeway Paints and Kadisco.

Business area of the company

Asian Paints manufactures a wide range of paints for decorative and industrial use. In Decorative paints, the company is present in all the four segments v.i.z Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also offers Water proofing, wall coverings and adhesives in its product portfolio. In the Home Improvement and Decor category, the company is present in the Kitchen and Bath fittings space and offers various products under Sleek and Ess Ess brand respectively.

Products:

Paints
Chemicals
Wall coverings
Textures Painting aid
Waterproofing solutions
Wall stickers
Mechanised tools
Kitchen fittings
Bath fittings and sanitaryware
Sanitizers and surface disinfectants
Adhesives
Kitchens & Wardrobes

Services:

Home Painting Services
Interior Design Services
Experience Retail Stores
Colour Consultancy
Projects
Sanitization services

Awards & Recognitions

2002: Forbes Global Magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world'.
2002: The Asset - one of Asia's leading financial magazines ranked Asian Paints amongst the leading Indian companies in Corporate Governance.
2003: Asian Paints received the Ernst & Young 'Entrepreneur of the Year – Manufacturing' award.
2003: Forbes Global Magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world'.
2005: Forbes Global Magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia.
2005: Forbes Global Magazine, USA ranked Asian Paints amongst the top 200 'Under a Billion Firms' of Asia.
2005: The Asset - one of Asia's leading financial magazines ranked Asian Paints amongst the leading Indian companies in Corporate Governance.
2011: Asian Paints receives the Best Audit Committee Award from the Asian Centre for Corporate Governance & Sustainability.
2011: Asian Paints was included in Forbes Magazine's - Asia's Fab 50 List of companies.
2012: In March 2012, Asian Paints was presented the Asian Centre for Corporate Governance & Sustainability Award for the Best Governed Company in 2011.
2012: Asian Paints was included in Forbes Magazine's - Asia's Fab 50 List of companies.
2013: Asian Paints was included in Forbes Magazine's - Asia's Fab 50 List of companies.
2014: Asian Paints was included in Forbes Magazine's - Asia's Fab 50 List of companies.
2015: Asian Paints felicitated as one of the Most Impactful Companies of the Decade by CNBC Awaaz.
2015: Asian Paints included in the list of India's Super 50 companies by Forbes India.
2015: Asian Paints was ranked 11th amongst the Top paint companies in the world by Coatings World - Top Companies Report 2015.
2016: Asian Paints wins ‘Outstanding Company of the year’ award for 2016 - ‘CNBC TV18 - India Business Leader Awards.
2016: Top Ranked Indian company in the ‘Forbes Most Innovative company List’ in 2016 (Ranked 18th in the world).
2017: Top Ranked Indian company in the Forbes Most Innovative company List’ (Ranked 8th in the world).
2017: Asian Paints included in the list of India's Super 50 companies by Forbes India.
2017: Asian Paints was ranked 10th amongst the Top paint companies in the world by Coatings World - Top Companies Report 2017.
2018: Asian Paints was ranked 9th amongst the Top paint companies in the world by Coatings World - Top Companies Report 2018.
2019: Asian Paints was ranked 9th amongst the Top paint companies in the world by Coatings World - Top Companies Report 2019.
2019: Included in the Forbes List of World’s Best Regarded Companies. Second Consecutive appearance for Asian Paints in the coveted list.
2020: Ranked 9th among the world’s leading paint companies by Coatings World - Top Companies Report.

Milestones:

2006: Consolidated turnover crosses Rs 3000 crore.
2007: Board of Directors approves setting up of new paint plant in Haryana, India.
2007: Enter into a share purchase agreement for the sale of its stake in Asian Paints Queensland.
2008: Asian Paints performs Bhoomi Pooja at its proposed paint plant site at Rohtak Haryana.
2010: Signs MoU with Maharashtra Government to set up a Mega Project for manufacture of Paints and Intermediates at Kesurdi in Maharashtra.
2010: Commencement of commercial production at its new paint manufacturing facility in Rohtak, Haryana.
2011: The Board of Directors approved company’s plans to enhance its fourteen year old relationship with PPG Industries Inc. to accelerate growth of the non-decorative coatings businesses in India.
2013: Completes acquisition of Sleek Group.
2020: Asian Paints has received approval for Scheme of amalgamation of Reno Chemicals Pharmaceuticals & Cosmetics, a wholly owned subsidiary of the Company.
2020: Forays into Hand & Surface Sanitizer category.
2020: Launches range of furniture, furnishings, lighting products.