Asian Paints (NSEI:ASIANPAINT) - Share price, News & Analysis

ASIANPAINT fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

ASIANPAINT Stock Overview

Asian Paints Limited, together with its subsidiaries, manufactures, sells, and distributes paints and coatings for decorative and industrial use in India and internationally.

Rewards

Earnings are forecast to grow 21.01% per year

Risk Analysis

High level of non-cash earnings

Dividend of 0.67% is not well covered by earnings

Asian Paints Competitors

Akzo Nobel India

BSE:500710

₹79.3b

Indigo Paints

BSE:543258

₹75.1b

Shalimar Paints

BSE:509874

₹10.2b

Sherwin-Williams

NYSE:SHW

US$71.5b

Price History & Performance

Summary of all time highs, changes and price drops for Asian Paints
Historical stock prices
Current Share Price	₹2,834.85
52 Week High	₹3,590.00
52 Week Low	₹2,599.35
Beta	0.38
1 Month Change	-9.96%
3 Month Change	-9.12%
1 Year Change	-3.60%
3 Year Change	101.44%
5 Year Change	143.48%
Change since IPO	6,557.18%

Recent News & Updates

May 13

Asian Paints (NSE:ASIANPAINT) Is Paying Out A Larger Dividend Than Last Year

Asian Paints Limited ( NSE:ASIANPAINT ) has announced that it will be increasing its dividend on the 29th of July to...

Apr 29

Is Now The Time To Put Asian Paints (NSE:ASIANPAINT) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

	ASIANPAINT	IN Chemicals	IN Market
7D	-8.8%	-3.7%	-0.9%
1Y	-3.6%	6.3%	7.1%

Return vs Industry: ASIANPAINT underperformed the Indian Chemicals industry which returned 4.1% over the past year.

Return vs Market: ASIANPAINT underperformed the Indian Market which returned 5.6% over the past year.

Price Volatility

Is ASIANPAINT's price volatile compared to industry and market?
ASIANPAINT volatility
ASIANPAINT Average Weekly Movement	5.0%
Chemicals Industry Average Movement	6.7%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.7%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: ASIANPAINT is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ASIANPAINT's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1942	7,134	Amit Syngle	https://www.asianpaints.com

Asian Paints Limited, together with its subsidiaries, manufactures, sells, and distributes paints and coatings for decorative and industrial use in India and internationally. It operates in Paints and Home Improvement segments. The company offers decorative coatings for interior and exterior walls, metal finishes, and wood finishes; mechanized tools and waterproofing products; adhesives; bath fittings and accessories; modular kitchens and wardrobes; wall coverings and stickers; furniture; furnishings and lightings; kitchen hardware, accessories, and appliances; home décor products; and sanitizers and surface disinfectants, as well as services, including color consultancy, home painting, décor, project, interior design, and sanitization services.

Asian Paints Fundamentals Summary

How do Asian Paints's earnings and revenue compare to its market cap?
ASIANPAINT fundamental statistics
Market Cap	₹2.72t
Earnings (TTM)	₹30.31b
Revenue (TTM)	₹289.23b

89.7x

P/E Ratio

9.4x

P/S Ratio

Is ASIANPAINT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASIANPAINT income statement (TTM)
Revenue	₹289.23b
Cost of Revenue	₹183.01b
Gross Profit	₹106.23b
Other Expenses	₹75.92b
Earnings	₹30.31b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	31.59
Gross Margin	36.73%
Net Profit Margin	10.48%
Debt/Equity Ratio	5.5%

How did ASIANPAINT perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

61%

Payout Ratio

Does ASIANPAINT pay a reliable dividends?

See ASIANPAINT dividend history and benchmarks

When do you need to buy ASIANPAINT by to receive an upcoming dividend?
Asian Paints dividend dates
Ex Dividend Date	Jun 09 2022
Dividend Pay Date	Jul 29 2022
Days until Ex dividend	12 days
Days until Dividend pay date	62 days

Does ASIANPAINT pay a reliable dividends?

See ASIANPAINT dividend history and benchmarks

Valuation

Is Asian Paints undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

89.73x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: ASIANPAINT (₹2834.85) is trading above our estimate of fair value (₹705.79)

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

Price To Earnings Ratio

PE vs Industry: ASIANPAINT is poor value based on its Price-To-Earnings Ratio (89.7x) compared to the Indian Chemicals industry average (17.7x).

PE vs Market: ASIANPAINT is poor value based on its Price-To-Earnings Ratio (89.7x) compared to the Indian market (19.4x).

Price to Earnings Growth Ratio

PEG Ratio: ASIANPAINT is poor value based on its PEG Ratio (4.3x)

Price to Book Ratio

PB vs Industry: ASIANPAINT is overvalued based on its Price-To-Book Ratio (19.7x) compared to the IN Chemicals industry average (2.3x).

Future Growth

How is Asian Paints forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASIANPAINT's forecast earnings growth (21% per year) is above the savings rate (6.7%).

Earnings vs Market: ASIANPAINT's earnings (21% per year) are forecast to grow faster than the Indian market (17.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ASIANPAINT's revenue (12% per year) is forecast to grow faster than the Indian market (12% per year).

High Growth Revenue: ASIANPAINT's revenue (12% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ASIANPAINT's Return on Equity is forecast to be high in 3 years time (29.5%)

Past Performance

How has Asian Paints performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASIANPAINT has a high level of non-cash earnings.

Growing Profit Margin: ASIANPAINT's current net profit margins (10.5%) are lower than last year (14.6%).

Past Earnings Growth Analysis

Earnings Trend: ASIANPAINT's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: ASIANPAINT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASIANPAINT had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Chemicals industry average (33.6%).

Return on Equity

High ROE: ASIANPAINT's Return on Equity (21.7%) is considered high.

Financial Health

How is Asian Paints's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ASIANPAINT's short term assets (₹151.5B) exceed its short term liabilities (₹75.7B).

Long Term Liabilities: ASIANPAINT's short term assets (₹151.5B) exceed its long term liabilities (₹12.1B).

Debt to Equity History and Analysis

Debt Level: ASIANPAINT has more cash than its total debt.

Reducing Debt: ASIANPAINT's debt to equity ratio has reduced from 7% to 5.5% over the past 5 years.

Debt Coverage: ASIANPAINT's debt is well covered by operating cash flow (127.2%).

Interest Coverage: ASIANPAINT's interest payments on its debt are well covered by EBIT (41.8x coverage).

Balance Sheet

Dividend

What is Asian Paints's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.67%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: ASIANPAINT's dividend (0.67%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: ASIANPAINT's dividend (0.67%) is low compared to the top 25% of dividend payers in the Indian market (1.72%).

Stability and Growth of Payments

Stable Dividend: ASIANPAINT's dividends per share have been stable in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.6%), ASIANPAINT's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (409.8%), ASIANPAINT's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average board tenure

CEO

Amit Syngle (55 yo)

2.08yrs

Tenure

₹104,159,592

Compensation

Mr. Amit Syngle has been the Managing Director, Chief Executive Officer and Director of Asian Paints Limited since April 1, 2020. Mr. Syngle has been working with Asian Paints for the last 30 years in vari...

CEO Compensation Analysis

Compensation vs Market: Amit's total compensation ($USD1.34M) is about average for companies of similar size in the Indian market ($USD1.26M).

Compensation vs Earnings: Amit's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Board Members

Experienced Board: ASIANPAINT's board of directors are considered experienced (4.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31