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 Overvalued zone.
3. Is Asian Paints Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Asian Paints Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘValue Creation Index Colour Code Guide ⓘ
|ROCE % ⓘ||35.1%||31.7%||29.9%||28.4%||28%||24.8%||22.5%||22.6%||25.9%||26%||-|
|Value Creation Index ⓘ||2.1||1.8||1.7||1.5||1.5||1.2||1.0||1.0||1.3||1.3||-|
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||13.6%||16.2%||11.6%||0.6%||7.9%||9.7%||14.6%||4.7%||7.2%||-|
|Adj EPS ⓘ||10.3||11.5||12.7||14.4||18.1||20.1||20.5||22.4||28.1||32.5||31.6|
|YoY Gr. Rt. %||-||11.4%||11.1%||13.4%||25.3%||11.2%||2.2%||9.1%||25.4%||15.5%||-|
|BVPS (₹) ⓘ||28.7||35.3||42.1||49.4||68||79.3||87.7||98.7||105.6||133.5||140.9|
|Adj Net Profit ⓘ||986||1,098||1,220||1,385||1,735||1,928||1,970||2,149||2,696||3,113||3,032|
|Cash Flow from Ops. ⓘ||700||1,187||1,402||1,188||2,243||1,527||2,113||2,470||3,038||3,683||-|
|Debt/CF from Ops. ⓘ||0.5||0.3||0.2||0.4||0.1||0.4||0.3||0.3||0.1||0.1||-|
CAGR ⓘCAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||13.6%||12.4%||16.5%||15.5%|
Key Financial Parameters ⓘPerformance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||40||35.8||32.9||31.5||30.8||27.3||24.6||24||27.5||27.2||23|
|Op. Profit Mgn % ⓘ||16||16||15.9||15.8||19.5||19.6||19||19.5||20.5||22.4||16.8|
|Net Profit Mgn % ⓘ||10.6||10.5||9.9||10||12.3||12.7||11.7||11.2||13.4||14.5||10.9|
|Debt to Equity ⓘ||0.1||0.1||0.1||0.1||0.1||0.1||0.1||0.1||0||0||-|
|Working Cap Days ⓘ||84||88||87||89||83||88||105||104||105||114||0|
|Cash Conv. Cycle ⓘ||18||21||19||22||16||16||20||25||29||24||0|
Net Profit is growing at healthy rate in last 3 years 16.48%
Sales growth is good in last 4 quarters at 48.21%
Return on Equity has declined versus last 3 years average to 23.00%
Sales growth has been subdued in last 3 years 8.74%
|TTM EPS (₹)||31.8||31.6|
|TTM Sales (₹ Cr.)||24,100||27,860|
|BVPS (₹.) ⓘ||134.2||140.9|
|Reserves (₹ Cr.) ⓘ||12,777||13,423|
|From the Market|
|52 Week Low / High (₹)||2261.45 / 3588.05|
|All Time Low / High (₹)||2.73 / 3588.05|
|Market Cap (₹ Cr.)||3,01,792|
|Equity (₹ Cr.)||95.9|
|Face Value (₹)||1|
|Industry PE ⓘ||89.1|
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.
Awards & Recognitions