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 16.2% annually (CAGR) over the past ten years.

Is Asian Paints a good buy now?

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

Asian Paints Ltd - Stock Valuation and Financial Performance

Name: Asian Paints
Brand: Asian Paints

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

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Asian Paints Share Price

₹2,938.10 -58.90 -1.97%
as on 31-Oct'24 16:01

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'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	44.9%	44.4%	39.6%	36.4%	36%	36.3%	37.2%	30.9%	37%	41.1%	-
Value Creation Index ⓘ	3.0	2.9	2.5	2.2	2.2	2.2	2.3	1.7	2.3	2.7	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	14,183	14,271	15,168	16,844	19,248	20,211	21,713	29,101	34,489	35,495	35,172
Sales YoY Gr.	-	0.6%	6.3%	11.1%	14.3%	5%	7.4%	34%	18.5%	2.9%	-
Adj EPS ⓘ	14.4	18.1	19.8	20.3	22.5	28.2	32.5	31.3	43.5	57	53
YoY Gr.	-	25.3%	9.7%	2.4%	10.7%	25.3%	15.3%	-3.5%	38.9%	30.9%	-
BVPS (₹) ⓘ	49.4	68	79.3	87.7	98.7	105.6	133.5	143.9	166.5	194.8	206.7
Adj Net Profit ⓘ	1,385	1,735	1,903	1,947	2,155	2,701	3,113	3,005	4,174	5,464	5,080
Cash Flow from Ops. ⓘ	1,188	2,243	1,527	2,113	2,470	3,038	3,683	986	4,193	6,104	-
Debt/CF from Ops. ⓘ	0.4	0.1	0.4	0.3	0.3	0.1	0.1	0.8	0.2	0.2	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	10.7%	13%	17.8%	2.9%
Adj EPS ⓘ	16.5%	20.5%	20.6%	30.9%
BVPSⓘ	16.5%	14.6%	13.4%	17%
Share Price	16.2%	10.7%	-2%	0.1%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	31.5	30.8	26.9	24.3	24.1	27.6	27.2	22.6	28	31.5	26.4
Op. Profit Mgn % ⓘ	15.8	19.5	19.7	19	19.6	20.6	22.4	16.5	18.3	21.4	20.4
Net Profit Mgn % ⓘ	10	12.3	13.1	11.9	11.5	13.7	14.7	10.5	12.4	15.7	14.4
Debt to Equity ⓘ	0.1	0.1	0.1	0.1	0.1	0	0	0.1	0.1	0.1	-
Working Cap Days ⓘ	89	83	89	105	104	105	114	116	119	120	90
Cash Conv. Cycle ⓘ	22	16	17	20	25	30	24	33	44	45	45

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 17.80%

Net Profit is growing at healthy rate in last 3 years 20.62%

Return on Equity has declined versus last 3 years average to 26.40%

Sales growth is not so good in last 4 quarters at 0.71%

Latest Financials - Asian Paints Ltd.

	Standalone	Consolidated
TTM EPS (₹)	52.2	53
TTM Sales (₹ Cr.)	30,495	35,172
BVPS (₹.) ⓘ	204	206.7
Reserves (₹ Cr.) ⓘ	19,473	19,734
P/BV ⓘ	14.40	14.21
PE ⓘ	56.30	55.48

From the Market
52 Week Low / High (₹)	2671.00 / 3422.00
All Time Low / High (₹)	2.73 / 3590.00
Market Cap (₹ Cr.)	2,81,822
Equity (₹ Cr.)	95.9
Face Value (₹)	1
Industry PE ⓘ	54.5

Management X-Ray of Asian Paints:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

10.99

10.63

7.62

7.41

7.26

6.49

6.58

7.04

7.15

7.70

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

Valuation of Asian Paints

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Analyst's Notes

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Key Ratios of Asian Paints

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	14,183	14,271	15,168	16,844	19,248	20,211	21,713	29,101	34,489	35,495
Operating Expenses ⓘ	11,940	11,494	12,174	13,640	15,478	16,049	16,857	24,298	28,229	27,910
Manufacturing Costs	1,635	1,650	1,769	1,802	2,015	2,044	2,154	2,998	3,054	2,900
Material Costs	6,727	6,769	7,030	8,290	9,656	9,743	10,333	15,798	18,676	17,775
Employee Cost	907	990	1,034	1,115	1,237	1,366	1,541	1,787	2,028	2,326
Other Costs ⓘ	2,671	2,086	2,342	2,433	2,569	2,897	2,829	3,715	4,470	4,909
Operating Profit ⓘ	2,243	2,777	2,994	3,204	3,771	4,162	4,856	4,804	6,260	7,585
Operating Profit Margin (%)	15.8%	19.5%	19.7%	19.0%	19.6%	20.6%	22.4%	16.5%	18.2%	21.4%
Other Income ⓘ	170	213	262	221	233	304	303	380	386	688
Interest ⓘ	42	49	37	41	110	102	92	95	144	205
Depreciation ⓘ	266	276	335	360	622	781	791	816	858	853
Exceptional Items ⓘ	-28	-52	0	0	0	0	0	-116	-49	0
Profit Before Tax ⓘ	2,077	2,614	2,934	3,068	3,312	3,634	4,304	4,188	5,689	7,348
Tax ⓘ	650	844	943	1,041	1,098	855	1,098	1,103	1,494	1,790
Profit After Tax	1,427	1,769	1,990	2,028	2,214	2,779	3,207	3,085	4,195	5,558
PAT Margin (%)	10.1%	12.4%	13.1%	12.0%	11.5%	13.8%	14.8%	10.6%	12.2%	15.7%
Adjusted EPS (₹)	14.5	18.2	20.2	21.3	22.5	28.2	32.7	31.6	42.8	56.9
Dividend Payout Ratio (%)	42%	41%	51%	41%	47%	43%	55%	61%	60%	59%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	4,742	6,525	7,604	8,410	9,471	10,130	12,806	13,798	15,965	18,680
Share Capital ⓘ	96	96	96	96	96	96	96	96	96	96
Reserves ⓘ	4,646	6,429	7,508	8,314	9,375	10,034	12,710	13,702	15,870	18,584
Minority Interest	264	384	375	328	361	404	423	388	454	695
Debt	410	304	546	521	616	340	340	776	972	1,089
Long Term Debt	78	73	41	28	19	19	15	45	76	54
Short Term Debt	332	231	504	492	597	321	326	731	896	1,035
Trade Payables	1,549	1,565	1,923	2,160	2,394	2,137	3,379	4,164	3,635	3,831
Others Liabilities ⓘ	1,950	1,782	1,958	2,345	3,407	3,128	3,407	3,833	4,753	5,605
Total Liabilities ⓘ	8,915	10,559	12,405	13,763	16,249	16,138	20,355	22,958	25,779	29,901
Fixed Assets
Gross Block	4,112	3,744	3,966	4,758	7,943	8,282	8,392	8,604	9,676	11,622
Accumulated Depreciation	1,438	275	610	973	1,394	1,957	2,481	3,019	3,814	4,381
Net Fixed Assetsⓘ	2,675	3,469	3,356	3,785	6,549	6,325	5,911	5,585	5,862	7,240
CWIP ⓘ	196	107	258	1,405	210	140	183	426	1,020	2,698
Investmentsⓘ	1,588	2,712	2,652	2,141	2,569	2,019	4,737	3,248	4,262	4,588
Inventories	2,259	1,998	2,627	2,658	3,150	3,390	3,799	6,153	6,211	5,923
Trade Receivables	1,182	1,187	1,447	1,731	1,907	1,795	2,602	3,871	4,637	4,889
Cash Equivalents	204	424	801	405	445	783	611	864	844	1,084
Others Assetsⓘ	811	662	1,265	1,639	1,420	1,686	2,513	2,811	2,944	3,478
Total Assets ⓘ	8,915	10,559	12,405	13,763	16,249	16,138	20,355	22,958	25,779	29,901

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	1,188	2,243	1,527	2,113	2,470	3,038	3,683	986	4,193	6,104
PBT ⓘ	2,077	2,614	2,964	3,139	3,305	3,628	4,304	4,188	5,689	7,348
Adjustment ⓘ	194	234	91	135	557	751	665	770	771	581
Changes in Working Capital ⓘ	-450	198	-603	-80	-410	-331	-206	-2795	-772	10
Tax Paid ⓘ	-633	-802	-925	-1,081	-982	-1,011	-1,080	-1,176	-1,494	-1,835
Cash Flow From Investing Activity ⓘ	-478	-866	-656	-1,599	-944	-521	-548	-322	-1,275	-2,518
Capex	-438	-802	-667	-1,409	-1,154	-377	-261	-511	-1,420	-2,491
Net Investments	35	-148	-95	117	130	-237	-368	97	2	-253
Others ⓘ	-75	84	106	-308	79	92	81	92	143	226
Cash Flow From Financing Activityⓘ	-576	-849	-756	-1,379	-1,117	-2,871	-650	-1,808	-2,140	-2,983
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	0	-75	0	1
Net Proceeds from Borrowing ⓘ	34	5	-27	-17	-11	7	-12	32	78	-8
Interest Paid ⓘ	-35	-40	-36	-35	-106	-101	-89	-94	-142	-191
Dividend Paid ⓘ	-695	-638	-947	-1,218	-994	-1,916	-499	-1,763	-1,936	-2,551
Others ⓘ	119	-176	253	-109	-6	-862	-50	92	-141	-234
Net Cash Flow ⓘ	134	528	115	-865	408	-355	2,485	-1,143	779	603

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	32.51	31.41	28.18	25.32	24.76	28.36	27.96	23.19	28.19	32.08
ROCE (%)	44.85	44.35	39.58	36.36	35.95	36.31	37.19	30.88	36.98	41.05
Asset Turnover Ratio	1.95	1.83	1.66	1.52	1.47	1.44	1.39	1.59	1.69	1.54
PAT to CFO Conversion(x)	0.83	1.27	0.77	1.04	1.12	1.09	1.15	0.32	1	1.1
Working Capital Days
Receivable Days	25	24	25	29	30	29	32	34	38	41
Inventory Days	48	44	44	48	48	51	52	53	55	52
Payable Days	89	84	91	90	86	85	97	87	73	71

Asian Paints Ltd Stock 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 31-Oct-2024 16:01 is ₹2,938.1.

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 31-Oct-2024 16:01 the market cap of Asian Paints stood at ₹2,81,821.9.

What is the P/E ratio of Asian Paints?

The latest P/E ratio of Asian Paints as of 31-Oct-2024 16:01 is 56.30.

What is the P/B ratio of Asian Paints?

The latest P/B ratio of Asian Paints as of 31-Oct-2024 16:01 is 14.40.

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

The 52-week high of Asian Paints is ₹3,422 and the 52-week low is ₹2,671.

What is the TTM revenue of Asian Paints?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Asian Paints is ₹30,495 ( 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.