BSE:500710

Stock Analysis Report

Executive Summary

Akzo Nobel India Limited manufactures and sells a range of paints and coatings in India and internationally.

Snowflake

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Akzo Nobel India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500710 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

500710

-0.8%

IN Chemicals

0.5%

IN Market


1 Year Return

21.6%

500710

8.3%

IN Chemicals

5.6%

IN Market

Return vs Industry: 500710 exceeded the Indian Chemicals industry which returned 8.3% over the past year.

Return vs Market: 500710 exceeded the Indian Market which returned 5.6% over the past year.


Shareholder returns

500710IndustryMarket
7 Day-0.1%-0.8%0.5%
30 Day-4.2%-1.1%2.1%
90 Day13.6%9.3%10.4%
1 Year23.3%21.6%11.0%8.3%7.6%5.6%
3 Year41.0%35.6%57.4%51.0%37.0%29.9%
5 Year59.7%45.0%116.2%99.7%39.6%27.0%

Price Volatility Vs. Market

How volatile is Akzo Nobel India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Akzo Nobel India undervalued compared to its fair value and its price relative to the market?

37.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500710 (₹1930.95) is trading above our estimate of fair value (₹649.87)

Significantly Below Fair Value: 500710 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500710 is poor value based on its PE Ratio (37.1x) compared to the Chemicals industry average (10.7x).

PE vs Market: 500710 is poor value based on its PE Ratio (37.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: 500710 is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: 500710 is overvalued based on its PB Ratio (7.9x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Akzo Nobel India forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500710's forecast earnings growth (9.3% per year) is above the savings rate (7.6%).

Earnings vs Market: 500710's earnings (9.3% per year) are forecast to grow slower than the Indian market (19.4% per year).

High Growth Earnings: 500710's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500710's revenue (10.6% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: 500710's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500710's Return on Equity is forecast to be high in 3 years time (21.3%)


Next Steps

Past Performance

How has Akzo Nobel India performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500710 has high quality earnings.

Growing Profit Margin: 500710's current net profit margins (8.3%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 500710's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: 500710's earnings growth over the past year (13.9%) exceeds its 5-year average (4.4% per year).

Earnings vs Industry: 500710 earnings growth over the past year (13.9%) exceeded the Chemicals industry 10.7%.


Return on Equity

High ROE: 500710's Return on Equity (21.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Akzo Nobel India's financial position?


Financial Position Analysis

Short Term Liabilities: 500710's short term assets (₹13.4B) exceeds its short term liabilities (₹8.5B)

Long Term Liabilities: 500710's short term assets (₹13.4B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: 500710's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 500710's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 500710's debt is well covered by operating cash flow (1825.5%).

Interest Coverage: 500710 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500710 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500710's debt is covered by short term assets (assets are 108.9x debt).


Next Steps

Dividend

What is Akzo Nobel India's current dividend yield, its reliability and sustainability?

1.24%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: 500710's dividend (1.24%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500710's dividend (1.24%) is low compared to the top 25% of dividend payers in the Indian market (2.46%).


Stability and Growth of Payments

Stable Dividend: 500710's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500710's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.1%), 500710's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500710's dividends in 3 years are forecast to be well covered by earnings (44.1% payout ratio).


Next Steps

Management

What is the CEO of Akzo Nobel India's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Rajiv Rajagopal (51yo)

1yrs

Tenure

₹11,210,000

Compensation

Mr. Rajiv Rajagopal, MBA, Managing Director and Director of Akzo Nobel India Limited since November 1, 2018. He served as Director of Sales & Marketing - Deco at Akzo Nobel India Limited from February 2013 ...


CEO Compensation Analysis

Compensation vs Market: Rajiv's total compensation ($USD156.22K) is below average for companies of similar size in the Indian market ($USD595.46K).

Compensation vs Earnings: Insufficient data to compare Rajiv's compensation with company performance.


Management Age and Tenure

1.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: 500710's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 500710's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rajasekaran Guha (60yo)

    Company Secretary & Head of Business Relation

    • Tenure: 0yrs
    • Compensation: ₹17.09m
  • T. Ghoshal (67yo)

    Works Manager of Panki

    • Tenure: 0yrs
    • Compensation: ₹3.57m
  • Shrikant Choubey (62yo)

    GM & Head of Project Management Group

    • Tenure: 10.8yrs
    • Compensation: ₹2.97m
  • Shrikant Kulkarni (59yo)

    Head of Sales & Marketing - South Asia and Marketing Manager global - Pharma segment (BUPC)

    • Tenure: 0yrs
  • Rajiv Rajagopal (51yo)

    MD & Director

    • Tenure: 1yrs
    • Compensation: ₹11.21m
  • Lakshay Kataria (41yo)

    CFO & Whole Time Director

    • Tenure: 0.8yrs
    • Compensation: ₹3.90m
  • A. Bhattacharya

    Sales Head of Marine & Protective Coatings

    • Tenure: 0yrs
  • A. Kumar

    Head of Manufacturing

    • Tenure: 0yrs
  • H. Rastogi

    Accounting & Tax Controller

    • Tenure: 0yrs

Board Members

  • Arvind Uppal (57yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: ₹1.45m
  • Amit Jain (55yo)

    Chairman

    • Tenure: 2.3yrs
    • Compensation: ₹1.65m
  • Rahul Bhatnagar (60yo)

    Independent Director

    • Tenure: 0.3yrs
  • Hemant Sahai (56yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹930.00k
  • Sucheta Govil (56yo)

    Alternate Director

    • Tenure: 6.5yrs
  • Rajiv Rajagopal (51yo)

    MD & Director

    • Tenure: 1yrs
    • Compensation: ₹11.21m
  • Oscar Christian Maria Wezenbeek (55yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Lakshay Kataria (41yo)

    CFO & Whole Time Director

    • Tenure: 0.8yrs
    • Compensation: ₹3.90m
  • Smriti Vijay

    Independent Director

    • Tenure: 0.3yrs

Company Information

Akzo Nobel India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Akzo Nobel India Limited
  • Ticker: 500710
  • Exchange: BSE
  • Founded: 1646
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹88.710b
  • Shares outstanding: 45.54m
  • Website: https://www.akzonobel.co.in

Number of Employees


Location

  • Akzo Nobel India Limited
  • Magnum Towers
  • 9th Floor
  • Gurugram
  • Haryana
  • 122011
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500710BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1998
AKZOINDIANSEI (National Stock Exchange of India)YesEquity SharesININROct 1998

Biography

Akzo Nobel India Limited manufactures and sells a range of paints and coatings in India and internationally. It operates through Coatings and Others segments. The company offers marine coatings, protective ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 12:36
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.