NSEI:ASIANPAINT

Stock Analysis Report

Executive Summary

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 16.43% per year

Earnings grew by 24.3% over the past year

Pays a high and reliable dividend of 0.63%

Risk Analysis

No risks detected for ASIANPAINT from our risk checks.


Snowflake Analysis

Flawless balance sheet with outstanding track record and pays a dividend.


Similar Companies

Share Price & News

How has Asian Paints's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.6%

ASIANPAINT

0.6%

IN Chemicals

0.8%

IN Market


1 Year Return

30.1%

ASIANPAINT

6.9%

IN Chemicals

3.6%

IN Market

Return vs Industry: ASIANPAINT exceeded the Indian Chemicals industry which returned 6.9% over the past year.

Return vs Market: ASIANPAINT exceeded the Indian Market which returned 3.6% over the past year.


Shareholder returns

ASIANPAINTIndustryMarket
7 Day1.6%0.6%0.8%
30 Day-1.0%-0.6%0.7%
90 Day14.6%5.7%7.1%
1 Year31.0%30.1%9.5%6.9%5.6%3.6%
3 Year98.4%93.8%53.5%47.3%34.1%27.0%
5 Year147.5%137.9%112.9%97.1%41.4%28.6%

Price Volatility Vs. Market

How volatile is Asian Paints's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

64.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASIANPAINT (₹1743.95) is trading above our estimate of fair value (₹497.67)

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 PE Ratio (64.5x) compared to the Chemicals industry average (10.5x).

PE vs Market: ASIANPAINT is poor value based on its PE Ratio (64.5x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: ASIANPAINT is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: ASIANPAINT is overvalued based on its PB Ratio (16.6x) compared to the IN Chemicals industry average (1x).


Next Steps

Future Growth

How is Asian Paints forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASIANPAINT's forecast earnings growth (16.4% per year) is above the savings rate (6.5%).

Earnings vs Market: ASIANPAINT's earnings (16.4% per year) are forecast to grow slower than the Indian market (19.6% per year).

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

Revenue vs Market: ASIANPAINT's revenue (13.1% per year) is forecast to grow faster than the Indian market (11.6% per year).

High Growth Revenue: ASIANPAINT's revenue (13.1% 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 (29.4%)


Next Steps

Past Performance

How has Asian Paints performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASIANPAINT has high quality earnings.

Growing Profit Margin: ASIANPAINT's current net profit margins (12.7%) are higher than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: ASIANPAINT's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: ASIANPAINT's earnings growth over the past year (24.3%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: ASIANPAINT earnings growth over the past year (24.3%) exceeded the Chemicals industry 10.4%.


Return on Equity

High ROE: ASIANPAINT's Return on Equity (25.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Asian Paints's financial position?


Financial Position Analysis

Short Term Liabilities: ASIANPAINT's short term assets (₹80.3B) exceed its short term liabilities (₹48.5B).

Long Term Liabilities: ASIANPAINT's short term assets (₹80.3B) exceed its long term liabilities (₹11.8B).


Debt to Equity History and Analysis

Debt Level: ASIANPAINT's debt to equity ratio (3%) is considered satisfactory.

Reducing Debt: ASIANPAINT's debt to equity ratio has reduced from 6.2% to 3% over the past 5 years.

Debt Coverage: ASIANPAINT's debt is well covered by operating cash flow (795.2%).

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


Balance Sheet

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

Debt Coverage by Assets: ASIANPAINT's debt is covered by short term assets (assets are 25.8x debt).


Next Steps

Dividend

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

0.63%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: ASIANPAINT's dividend (0.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: ASIANPAINT's dividend (0.63%) is low compared to the top 25% of dividend payers in the Indian market (2.54%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.7%), ASIANPAINT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASIANPAINT's dividends in 3 years are forecast to be well covered by earnings (46.7% payout ratio).


Next Steps

Management

What is the CEO of Asian Paints's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average board tenure


CEO

Kanwar Bir Anand (64yo)

7.7yrs

Tenure

₹118,080,982

Compensation

Mr. Kanwar Bir Singh Anand, B.Tech, PGDM, has been the Managing Director and Chief Executive Officer of Asian Paints Limited since April 1, 2012 and served as its President of decorative business unit. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Kanwar Bir's total compensation ($USD1.67M) is above average for companies of similar size in the Indian market ($USD1.17M).

Compensation vs Earnings: Kanwar Bir's compensation has been consistent with company performance over the past year.


Board Age and Tenure

6.2yrs

Average Tenure

69yo

Average Age

Experienced Board: ASIANPAINT's board of directors are considered experienced (6.2 years average tenure).


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

  • Amit Syngle (53yo)

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: ₹31.25m
  • Kanwar Bir Anand (64yo)

    MD, CEO & Director

    • Tenure: 7.7yrs
    • Compensation: ₹118.08m
  • Vivek Subramanian (60yo)

    General Manager of Materials

    • Tenure: 0yrs
    • Compensation: ₹7.08m
  • Jaideep Nandi (54yo)

    Chief Executive Officer of Asian Paints PPG Pvt Ltd

    • Tenure: 0yrs
    • Compensation: ₹17.99m
  • Aashish Kshetry (51yo)

    Vice President of Supply Chain

    • Tenure: 0yrs
    • Compensation: ₹16.65m
  • B. Mallik (63yo)

    Vice President of Technology

    • Tenure: 0yrs
    • Compensation: ₹17.23m
  • R. Jeyamurugan (54yo)

    CFO & Company Secretary

    • Tenure: 0.08yrs
    • Compensation: ₹16.16m
  • Satish Kulkarni (50yo)

    Vice President of Projects & Services

    • Tenure: 0yrs
    • Compensation: ₹17.52m
  • Amit Baveja (44yo)

    Chief Internal Auditor

    • Tenure: 0yrs
  • Arun Nair

    Manager of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Deepak Satwalekar (71yo)

    Independent Director

    • Tenure: 19.6yrs
    • Compensation: ₹3.68m
  • Abhay Vakil (69yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: ₹4.19m
  • Ashwin Dani (77yo)

    Non-Executive Chairman

    • Tenure: 1.1yrs
    • Compensation: ₹4.74m
  • Manish Choksi (52yo)

    Non-Executive Vice Chairman

    • Tenure: 1.1yrs
    • Compensation: ₹2.45m
  • Kanwar Bir Anand (64yo)

    MD, CEO & Director

    • Tenure: 7.7yrs
    • Compensation: ₹118.08m
  • Swaminathan Sivaram (73yo)

    Independent Director

    • Tenure: 18.4yrs
    • Compensation: ₹3.17m
  • Malav Dani (44yo)

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: ₹3.50m
  • Amrita Vakil

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹3.21m
  • M. Sharma (72yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: ₹4.22m
  • Vibha Rishi (59yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: ₹3.28m

Company Information

Asian Paints Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asian Paints Limited
  • Ticker: ASIANPAINT
  • Exchange: NSEI
  • Founded: 1942
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹1.673t
  • Shares outstanding: 959.20m
  • Website: https://www.asianpaints.com

Number of Employees


Location

  • Asian Paints Limited
  • Asian Paints House
  • 6A, Shantinagar
  • Mumbai
  • Maharashtra
  • 400055
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500820BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1995
ASIANPAINTNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1995

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:48
End of Day Share Price2019/12/13 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.