Asian Paints Ltd - Stock Valuation and Financial Performance

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

Asian Paints Share Price

2,407 18.05 0.76%
as on 13-Dec'24 15:04

DeciZen - make an informed investing decision on Asian Paints

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Asian Paints stock performance -

mw4me loader
P/E Ratio (CD):
50.15
Market Cap:
2,29,147.6 Cr.
52-wk low:
2,370
52-wk high:
3,422

Is Asian Paints Ltd an attractive stock to invest in?

1. Is Asian Paints Ltd a good quality company?

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

2. Is Asian Paints Ltd 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 Somewhat Undervalued zone.

3. Is Asian Paints Ltd 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.

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

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

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Asian Paints Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 44.9%44.4%39.6%36.4%36%36.3%37.2%30.9%37%41.1%-
Value Creation
Index
3.02.92.52.22.22.22.31.72.32.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 14,18314,27115,16816,84419,24820,21121,71329,10134,48935,49534,723
Sales YoY Gr.-0.6%6.3%11.1%14.3%5%7.4%34%18.5%2.9%-
Adj EPS 14.418.119.820.322.528.232.531.343.55747.6
YoY Gr.-25.3%9.7%2.4%10.7%25.3%15.3%-3.5%38.9%30.9%-
BVPS (₹) 49.46879.387.798.7105.6133.5143.9166.5194.8187.9
Adj Net
Profit
1,3851,7351,9031,9472,1552,7013,1133,0054,1745,4644,569
Cash Flow from Ops. 1,1882,2431,5272,1132,4703,0383,6839864,1936,104-
Debt/CF from Ops. 0.40.10.40.30.30.10.10.80.20.2-

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%
BVPS16.5%14.6%13.4%17%
Share Price 12% 6.7% -9.8% -25.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
31.530.826.924.324.127.627.222.62831.524.9
Op. Profit
Mgn %
15.819.519.71919.620.622.416.518.321.419.2
Net Profit
Mgn %
1012.313.111.911.513.714.710.512.415.713.2
Debt to
Equity
0.10.10.10.10.1000.10.10.10
Working Cap
Days
89838910510410511411611912091
Cash Conv.
Cycle
2216172025302433444544

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 24.90%

Sales growth is not so good in last 4 quarters at -0.69%

Latest Financials - Asian Paints Ltd.

Standalone Consolidated
TTM EPS (₹) 46.4 47.6
TTM Sales (₹ Cr.) 30,020 34,723
BVPS (₹.) 185 187.9
Reserves (₹ Cr.) 17,650 17,928
P/BV 12.91 12.71
PE 51.52 50.15
From the Market
52 Week Low / High (₹) 2370.00 / 3422.00
All Time Low / High (₹) 2.73 / 3590.00
Market Cap (₹ Cr.) 2,29,148
Equity (₹ Cr.) 95.9
Face Value (₹) 1
Industry PE 49.6

Management X-Ray of Asian Paints:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *10.9910.637.627.417.266.496.587.047.157.70
* Pledged shares as % of Promoter's holding (%)

Event Update

Login/Register to view analysis.

Analyst's Notes

Key Ratios of Asian Paints

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales14,18314,27115,16816,84419,24820,21121,71329,10134,48935,495
Operating Expenses 11,94011,49412,17413,64015,47816,04916,85724,29828,22927,910
Manufacturing Costs1,6351,6501,7691,8022,0152,0442,1542,9983,0542,900
Material Costs6,7276,7697,0308,2909,6569,74310,33315,79818,67617,775
Employee Cost 9079901,0341,1151,2371,3661,5411,7872,0282,326
Other Costs 2,6712,0862,3422,4332,5692,8972,8293,7154,4704,909
Operating Profit 2,2432,7772,9943,2043,7714,1624,8564,8046,2607,585
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 170213262221233304303380386688
Interest 424937411101029295144205
Depreciation 266276335360622781791816858853
Exceptional Items -28-5200000-116-490
Profit Before Tax 2,0772,6142,9343,0683,3123,6344,3044,1885,6897,348
Tax 6508449431,0411,0988551,0981,1031,4941,790
Profit After Tax 1,4271,7691,9902,0282,2142,7793,2073,0854,1955,558
PAT Margin (%) 10.1%12.4%13.1%12.0%11.5%13.8%14.8%10.6%12.2%15.7%
Adjusted EPS (₹)14.518.220.221.322.528.232.731.642.856.9
Dividend Payout Ratio (%)42%41%51%41%47%43%55%61%60%59%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 4,7426,5257,6048,4109,47110,13012,80613,79815,96518,680
Share Capital 96969696969696969696
Reserves 4,6466,4297,5088,3149,37510,03412,71013,70215,87018,584
Minority Interest264384375328361404423388454695
Debt4103045465216163403407769721,089
Long Term Debt78734128191915457654
Short Term Debt3322315044925973213267318961,035
Trade Payables1,5491,5651,9232,1602,3942,1373,3794,1643,6353,831
Others Liabilities 1,9501,7821,9582,3453,4073,1283,4073,8334,7535,605
Total Liabilities 8,91510,55912,40513,76316,24916,13820,35522,95825,77929,901

Fixed Assets

Gross Block4,1123,7443,9664,7587,9438,2828,3928,6049,67611,622
Accumulated Depreciation1,4382756109731,3941,9572,4813,0193,8144,381
Net Fixed Assets2,6753,4693,3563,7856,5496,3255,9115,5855,8627,240
CWIP 1961072581,4052101401834261,0202,698
Investments 1,5882,7122,6522,1412,5692,0194,7373,2484,2624,588
Inventories2,2591,9982,6272,6583,1503,3903,7996,1536,2115,923
Trade Receivables1,1821,1871,4471,7311,9071,7952,6023,8714,6374,889
Cash Equivalents 2044248014054457836118648441,084
Others Assets8116621,2651,6391,4201,6862,5132,8112,9443,478
Total Assets 8,91510,55912,40513,76316,24916,13820,35522,95825,77929,901

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 1,1882,2431,5272,1132,4703,0383,6839864,1936,104
PBT 2,0772,6142,9643,1393,3053,6284,3044,1885,6897,348
Adjustment 19423491135557751665770771581
Changes in Working Capital -450198-603-80-410-331-206-2795-77210
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 35-148-95117130-237-368972-253
Others -7584106-30879928192143226
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 0000000-7501
Net Proceeds from Borrowing 345-27-17-117-123278-8
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 119-176253-109-6-862-5092-141-234
Net Cash Flow 134528115-865408-3552,485-1,143779603
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)32.5131.4128.1825.3224.7628.3627.9623.1928.1932.08
ROCE (%)44.8544.3539.5836.3635.9536.3137.1930.8836.9841.05
Asset Turnover Ratio1.951.831.661.521.471.441.391.591.691.54
PAT to CFO Conversion(x)0.831.270.771.041.121.091.150.3211.1
Working Capital Days
Receivable Days25242529302932343841
Inventory Days48444448485152535552
Payable Days89849190868597877371

Asian Paints Ltd Stock News

Asian Paints Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Asian Paints on 13-Dec-2024 15:04 is ₹2,407.
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 13-Dec-2024 15:04 the market cap of Asian Paints stood at ₹2,29,147.6.
The latest P/E ratio of Asian Paints as of 13-Dec-2024 15:04 is 51.52.
The latest P/B ratio of Asian Paints as of 13-Dec-2024 15:04 is 12.91.
The 52-week high of Asian Paints is ₹3,422 and the 52-week low is ₹2,370.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Asian Paints is ₹30,020 ( 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.
Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.