NSEI:ASIANPAINT

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ASIANPAINT's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

ASIANPAINT

1.5%

IN Chemicals

1.8%

IN Market


1 Year Return

29.8%

ASIANPAINT

25.7%

IN Chemicals

7.9%

IN Market

Return vs Industry: ASIANPAINT exceeded the Indian Chemicals industry which returned 25.7% over the past year.

Return vs Market: ASIANPAINT exceeded the Indian Market which returned 7.9% over the past year.


Shareholder returns

ASIANPAINTIndustryMarket
7 Day2.3%1.5%1.8%
30 Day-0.5%6.2%10.6%
90 Day13.1%8.1%9.7%
1 Year30.7%29.8%28.9%25.7%9.9%7.9%
3 Year99.5%95.4%41.6%34.6%8.5%3.2%
5 Year175.5%165.4%153.5%135.6%55.7%43.9%

Long-Term 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?

93.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASIANPAINT (₹2215.3) is trading above our estimate of fair value (₹428.65)

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 (93.4x) compared to the IN Chemicals industry average (15.7x).

PE vs Market: ASIANPAINT is poor value based on its PE Ratio (93.4x) compared to the Indian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: ASIANPAINT is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: ASIANPAINT is overvalued based on its PB Ratio (19.3x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Asian Paints forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASIANPAINT's forecast earnings growth (20.9% per year) is above the savings rate (7.2%).

Earnings vs Market: ASIANPAINT's earnings (20.9% per year) are forecast to grow slower than the Indian market (24.4% per year).

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

Revenue vs Market: ASIANPAINT's revenue (16.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: ASIANPAINT's revenue (16.3% 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 (28.3%)


Next Steps

Past Performance

How has Asian Paints performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASIANPAINT has high quality earnings.

Growing Profit Margin: ASIANPAINT's current net profit margins (12.5%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: ASIANPAINT's earnings have grown by 8.9% 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 (-12.3%) over the past year, making it difficult to compare to the Chemicals industry average (-1.6%).


Return on Equity

High ROE: ASIANPAINT's Return on Equity (20.4%) is considered high.


Next Steps

Financial Health

How is Asian Paints's financial position?


Financial Position Analysis

Short Term Liabilities: ASIANPAINT's short term assets (₹90.9B) exceed its short term liabilities (₹47.3B).

Long Term Liabilities: ASIANPAINT's short term assets (₹90.9B) exceed its long term liabilities (₹12.0B).


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 8.7% to 3% over the past 5 years.

Debt Coverage: ASIANPAINT's debt is well covered by operating cash flow (746.9%).

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


Balance Sheet


Next Steps

Dividend

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

0.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ASIANPAINT's dividend (0.54%) is higher than the bottom 25% of dividend payers in the Indian market (0.52%).

High Dividend: ASIANPAINT's dividend (0.54%) is low compared to the top 25% of dividend payers in the Indian market (2.1%).


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 reasonable payout ratio (50.6%), ASIANPAINT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASIANPAINT's dividends in 3 years are forecast to be well covered by earnings (41.4% payout ratio).


Next Steps

Management

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

6.4yrs

Average board tenure


CEO

Amit Syngle (54 yo)

0.58

Tenure

₹31,247,068

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...


Board Members

NamePositionTenureCompensationOwnership
Amit Syngle
MD, CEO & Additional Director0.58yr₹31.25m0.000060%
₹ 1.3m
Deepak Satwalekar
Independent Director20.5yrs₹3.35mno data
Ramaswami Seshasayee
Independent Director3.83yrs₹3.23m0.00016%
₹ 3.4m
Abhay Vakil
Non-Executive Director6.33yrs₹3.79m2.66%
₹ 56.6b
Ashwin Dani
Non-Executive Chairman2yrs₹4.33m0.12%
₹ 2.5b
Manish Choksi
Non-Executive Vice Chairman2yrs₹20.87m0.25%
₹ 5.3b
Swaminathan Sivaram
Independent Director19.33yrs₹3.01mno data
Malav Dani
Non-Executive Director7.08yrs₹3.08m0.34%
₹ 7.3b
Amrita Vakil
Non-Executive Director6.5yrs₹2.93m0.27%
₹ 5.7b
Mahendra Sharma
Independent Director8.08yrs₹3.67mno data
Vibha Rishi
Independent Director6.42yrs₹2.90mno data
Jigish Choksi
Additional Non Executive Director1.58yrs₹2.90mno data

6.4yrs

Average Tenure

65yo

Average Age

Experienced Board: ASIANPAINT's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ASIANPAINT insiders have bought and sold the same number of shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: ₹2.125t
  • 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 Analysis2020/11/28 12:07
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.