Akzo Nobel India Ltd - Stock Valuation and Financial Performance

BSE: 500710 | NSE: AKZOINDIA | Paints | Small Cap

Akzo Nobel India Share Price

2,460 -2.75 -0.11%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Akzo Nobel India

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Akzo Nobel India stock performance -

mw4me loader
P/E Ratio (SA):
27.14
Market Cap:
11,215.4 Cr.
52-wk low:
2,252.6
52-wk high:
3,076.4

Is Akzo Nobel India Ltd an attractive stock to invest in?

1. Is Akzo Nobel India Ltd a good quality company?

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

2. Is Akzo Nobel India Ltd undervalued or overvalued?

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

3. Is Akzo Nobel India Ltd a good buy now?

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

10 Year X-Ray of Akzo Nobel India:

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.
Akzo Nobel India 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 16%21%20.7%22.7%18.4%17.8%21%17.5%23.8%27%-
Value Creation
Index
0.20.60.50.70.40.30.60.30.81.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,4182,5272,6402,5732,7192,9182,6622,4213,1493,8023,940
Sales YoY Gr.-4.5%4.5%-2.6%5.7%7.3%-8.8%-9%30%20.8%-
Adj EPS 33.339.645.952.544.946.753.44764.47490.8
YoY Gr.-18.7%16.1%14.3%-14.5%4.1%14.3%-11.9%36.9%15%-
BVPS (₹) 181.2196.7248.6215.7276248.6271.6282.6276.2288.7318.2
Adj Net
Profit
156185214245209213243214293337413
Cash Flow from Ops. 171155263143181141375283121486-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.2%6.9%12.6%20.8%
Adj EPS 9.3%10.5%11.5%15%
BVPS5.3%0.9%2.1%4.5%
Share Price 11% 7% 2.9% 9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
15.920.920.622.618.217.520.5172326.229.9
Op. Profit
Mgn %
8.310.311.512.811.111.814.214.413.813.915.9
Net Profit
Mgn %
6.47.38.19.57.77.39.18.89.38.910.5
Debt to
Equity
0000000000-
Working Cap
Days
11010610411621029133739233730690
Cash Conv.
Cycle
-331-3210155151528

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 29.90%

Sales growth is growing at healthy rate in last 3 years 12.62%

Net Profit is growing at healthy rate in last 3 years 11.52%

Sales growth is not so good in last 4 quarters at 6.05%

Latest Financials - Akzo Nobel India Ltd.

Standalone Consolidated
TTM EPS (₹) 90.8 90.8
TTM Sales (₹ Cr.) 3,940 3,940
BVPS (₹.) 318.2 318.4
Reserves (₹ Cr.) 1,405 1,405
P/BV 7.74 7.74
PE 27.14 27.14
From the Market
52 Week Low / High (₹) 2252.55 / 3076.40
All Time Low / High (₹) 25.00 / 3076.40
Market Cap (₹ Cr.) 11,215
Equity (₹ Cr.) 45.5
Face Value (₹) 10
Industry PE 47.3

Management X-Ray of Akzo Nobel India:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Akzo Nobel India

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,4182,5272,6402,5732,7192,9182,6622,4213,1493,802
Operating Expenses 2,2262,2672,3372,2602,4232,5762,2832,0812,7183,277
Manufacturing Costs321353277280298313336305369415
Material Costs1,2501,2721,4861,3891,5261,6911,4431,3231,8782,290
Employee Cost 194206233245276265255251263300
Other Costs 462437341347323307249202208272
Operating Profit 192260304312296342379340430525
Operating Profit Margin (%) 7.9%10.3%11.5%12.1%10.9%11.7%14.2%14.0%13.7%13.8%
Other Income 57665765474338242527
Interest 2223459101514
Depreciation 44535454586579767683
Exceptional Items 0310421-5020
Profit Before Tax 203275314324283316323278367456
Tax 53891009078105867177121
Profit After Tax 150186214234206211237208290335
PAT Margin (%) 6.2%7.4%8.1%9.1%7.6%7.2%8.9%8.6%9.2%8.8%
Adjusted EPS (₹)32.239.945.950.144.146.352.245.663.773.7
Dividend Payout Ratio (%)233%50%153%44%50%52%27%110%118%88%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 8489201,1631,0091,2901,1361,2371,2881,2591,316
Share Capital 47474747474646464646
Reserves 8018731,1169621,2441,0901,1921,2421,2131,270
Minority Interest0000000000
Debt0033330000
Long Term Debt0033330000
Short Term Debt0000000000
Trade Payables493459589623664606677799845893
Others Liabilities 6994202892491,5051,6631,8061,9082,0282,192
Total Liabilities 2,0391,7992,0431,8843,4623,4073,7203,9944,1324,401

Fixed Assets

Gross Block905959577624697752856877924965
Accumulated Depreciation40244354105158222282334404454
Net Fixed Assets503516523519539530574543520511
CWIP 3112923271716174273
Investments 62939460033657337784100
Inventories324365361405351392424488664598
Trade Receivables308278352412395444396413496552
Cash Equivalents 726055348462553733458563
Others Assets1731731431541,4931,5861,6741,8001,9532,104
Total Assets 2,0391,7992,0431,8843,4623,4073,7203,9944,1324,401

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 171155263143181141375283121486
PBT 203275314342542316323278367456
Adjustment -8-1299-2255571663673
Changes in Working Capital -31-3553-9640-1059120-16999
Tax Paid 6-73-113-112-177-124-111-82-113-143
Cash Flow From Investing Activity 251239-156225-61854-225230-15
Capex -120-49-29-75-103-42-48-28-63-104
Net Investments 370287-1292969322145-21927564
Others 0024468221925
Cash Flow From Financing Activity -438-410-113-392-126-360-157-174-346-302
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid -2-2-1-2-2-2-9-8-12-12
Dividend Paid -373-350-93-324-103-100-110-155-319-273
Others -63-58-19-67-21-258-39-11-15-17
Net Cash Flow -17-16-6-2450-34222-1166169
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)15.4121.1220.621.5917.9217.4220.0416.4722.8126.08
ROCE (%)21.0231.3430.3930.0724.9126.3628.0322.8829.9936.57
Asset Turnover Ratio1.241.461.531.461.040.850.750.630.770.89
PAT to CFO Conversion(x)1.140.831.230.610.880.671.581.360.421.45
Working Capital Days
Receivable Days38383949535258615350
Inventory Days43454549494656696761
Payable Days138131122153147129152193152133

Akzo Nobel India Ltd Stock News

Akzo Nobel India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Akzo Nobel India on 12-Apr-2024 10:20 is ₹2,460.
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 12-Apr-2024 10:20 the market cap of Akzo Nobel India stood at ₹11,215.4.
The latest P/E ratio of Akzo Nobel India as of 12-Apr-2024 10:20 is 27.14.
The latest P/B ratio of Akzo Nobel India as of 12-Apr-2024 10:20 is 7.74.
The 52-week high of Akzo Nobel India is ₹3,076.4 and the 52-week low is ₹2,252.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Akzo Nobel India is ₹3,940 ( Cr.) .

About Akzo Nobel India Ltd

Akzo Nobel India Limited (‘the Company’) was incorporated in India on 12 March 1954 as Indian Explosives Limited. It is currently known as Akzo Nobel India Limited with effect from 15 February 2010 under Section 23(1) of the Companies Act, 1956.

Akzo Nobel is the world's largest coatings company, with leading market positions and brands in countries around the world. The company creates everyday essentials to make people’s lives more liveable and inspiring, present in India for over many decades. As a leading paints and coatings company, it supplies essential protection and essential colour to industries and consumers. Backed by a pioneering heritage, its innovative products and sustainable technologies are designed to meet the growing demands of its fast-changing planet, while making life easier. Ranked as a leader in sustainability, it is dedicated to energising cities and communities while creating a protected, colourful world where life is improved by what it does.

Company’s history

In the year 1911, the ICI Group commenced its operations in India. Brunner Mond & Co, one of the four companies that combined in 1926 to form ICI in the UK, opened a trading office in Calcutta (now Kolkata) to sell alkalis and dyes. In 1923, it became Brunner Mond & Co (India) and, in 1929, the name was changed to Imperial Chemical Industries (India) Ltd. This was followed by a period of sustained expansion, diversification and growth leading to 1954, with the formation of Indian Explosives Ltd, promoted jointly by ICI PLC and the Government of India. Its name was changed to IEL Limited in 1985 and to ICI India Limited in 1989. The Government of India’s holding became nil in 2003.

Along with the other group companies of ICI PLC in India, it sponsored the establishment of the ICI India Research and Technology Centre in Thane in 1976. Over the years, it saw more consolidation, restructuring and divestment. The highlights of this period include the merger of three other group companies of ICI plc in India - The Alkali and Chemical Corporation of India Ltd, Chemicals and Fibres India Limited and Crescent Dyes and Chemicals Limited - in 1984. Nalco Chemicals India Ltd was formed in 1987. A paints plant as well as a polyurethanes systems house were commissioned at Thane in 1997; another paints plant was commissioned at Mohali near Chandigarh; the Uniqema Innovation Centre opened at Thane in the following year.

Business area of the company

The Company is engaged in the business of manufacturing, trading and selling of paints and related products. The Company also provides research and development services to the holding company and its group companies.

Product and services

  • Decorative Paints 
  • Waterproofing Solutions 
  • Woodcare & Specialty Products 
  • Automotive & Specialty Coatings
  • Marine & Protective Coatings 
  • Powder Coatings 
  • Industrial Coatings

Awards and Recognitions

FY2016-17

  • The company has received the Globe Platinum Awards for ‘Pioneering Coatings Technology’,
  • The company’s Chairman Nihal Kaviratne CBE was awarded for ‘Business Excellence’ at the World Business Conclave in Hong Kong.

FY2017-18

  • The company has received ICSI (Institute of Company Secretaries of India) CSR Excellence Award 2017 in ‘Emerging Companies’ category.

FY2018-19

  • The company won three awards at the prestigious Asia Best CSR Award 2018 organized by CMO Asia for Best CSR Practice, Education and Skill Development.

FY2019-20

  • The Golden Globe Tiger Award 2019 in Kuala Lumpur for undertaking CSR project in Vocational Skill Training in Painting.
  • Honored with Excellence in Supply Chain Planning in an event organised by The Alden Global, the 7th Inflection Conference & Awards in India.
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