[Infographics] Asian Paints | How Asian Paints Can Increase Your Profit in the future!

Set up in 1942, the Asian Paints group is the largest paint manufacturer in India also engaged in the business of manufacturing varnishes, enamels or lacquers, surfacing preparation, organic composite solvents, and thinners.

It operates in 15 countries and has 26 paint manufacturing facilities in the world serving consumers in over 60 countries.

Besides Asian Paints, the group operates around the world through its various brands viz. Asian Paints Berger, Apco Coatings, SCIB Paints, Taubmans, Causeway Paints, and Kadisco Asian Paints.

It also manufactures metal sanitary ware such as baths, sinks, washbasins, and similar articles. Recently introduced Lightings, Furnishings, and Furniture thus adding more products in the Home décor and Interior Design category.

Revenue Breakup

  • Decorative Coatings – 83.70%
  • Industrial Coatings – 2.40%
  • International Operations – 11.60%
  • Home Improvement Business – 2.30%

Leadership in

  • 3rd Largest Paint Co. in Asia.
  • 9th Largest Coatings Co. in the World.
  • 50+ Years of Market Leadership in India.
  • Leading wallpaper manufacturer under the brand NILAYA.
  • 3x of nearest Competitor in India.
  • Top 3 player in decorative paints in 12 of the 14 countries outside India.

Paint Business

The group enjoys a dominant share of over 50% in the organized domestic paints market (the second-largest player has a market share of about 16%). In the decorative paints segment, which comprises about 70-75% of the Indian paints industry, the group has a share of about 60%.

It also has a healthy position in the automotive industrial coatings segment with a market share of about 20%.

Kitchen business

The industry has been witnessing a shift towards branded modular kitchen solutions from local carpenters and interior designers.

The Company forayed into the Kitchen business by acquiring a 51% stake in Sleek in FY 2013-14. During FY 2017-18, the Company acquired the remaining 49% stake in Sleek from the previous promoters to make it a wholly-owned subsidiary.

There’s huge potential for Co. as the overall market in India is estimated to be worth more than 15,000 Crores and is a fragmented market with many unorganized players.

Bath business 

Asian Paints forayed into the Bath business by acquiring the front-end business of Ess in FY 2014-15. Over the years, the Company has expanded its network footprint as well as the range of products it offers.

Asian Paints Stock Index Presence

NIFTY100WEIGHTNIFTYEQWGTNIFTY100NIFTYNFTALLO30
NIFTY500NIFTY200QTLY30NT100LOW30NIFTYLEGMID250NIFTY200
NIFTYCONSUMPNSEQ30NFTALQLV30NFTQTLO30NT100ALP30
NIFTYLOWVOLSENSEXBSE500SNSX50BSE100
BSE200LMI250ALLCAPLRGCAPBSE100LARGECAPTMC
CDGXCARBONEXSPBSLVIPMFGS&PDIVSTABLE
ESG100SHA500S&P LARGEMIDCAP  

Asian Paints Today

ASIAN PAINTS LTD
ASIANPAINT.NS
₹ 3,080.65
-1.53%
Marketcap
2.96T
Volume
₹ 1,121,330.00
Shares
959,198,016
Range
₹ 3,066.10 - ₹ 3,121.90
52 Week Range
₹ 2,488.00 - ₹ 3,590.00
ASIAN PAINTS LTD
sectorBasic Materials
industrySpecialty Chemicals
addressAsian Paints House, Mumbai, India
countryIndia
phone91 22 6218 1000
websitehttps://www.asianpaints.com
ASIAN PAINTS LTD
₹ 3,080.65
Open ₹ 3,117.20
High ₹ 3,121.90
Marketcap 2.96T
Close ₹ 3,080.65
Low ₹ 3,066.10
Volume ₹ 1,121,330.00

Asian Paints Chart

Asian Paints Infographics

Asian Paint Infographics by Kamlesh Rode
Asian Paints Infographics by Kamlesh Rode, created in Figma.com

Asian Paints Overview

Asian Paints Overview
Asian Paints Overview

Key takeaways

  • Intrinsic value of this stock is higher than current price.
  • Asian Paints stock gave high return compare to Fixed-deposits.
  • This stock offered low dividend in past.
  • This stock is not in ASM/GSM list.
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
100.0425.2523.743.210.55%1.53%

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of Asian Paints

Asian Paints Infographics - Financials
Asian Paints Infographics – Financials

Income Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue17,160.9619,513.9020,566.3022,044.44
EBITDA3,540.424,038.714,511.875,187.25
PBIT3,179.953,416.573,731.374,395.98
PBT3,138.483,306.103,629.044,304.35
Net Income2,038.932,155.922,705.173,139.29
EPS21.2622.4828.232.73
DPS8.710.51217.85
Payout ratio0.410.470.430.55
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Income Statement

Lower than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 5.97%, vs industry avg of 6.76%

Higher than Industry Net Income

Over the last 5 years, net income has grown at a yearly rate of 12.46%, vs industry avg of 12%

Decreasing Market Share

Over the last 5 years, market share decreased from 64.28% to 61.94%

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets6,914.087,626.957,580.1112,026.60
Non-Current Assets6,849.408,621.898,557.868,328.74
Total Assets13,763.4816,248.8416,137.9720,355.34
Current Liabilities4,451.075,180.104,380.385,925.86
Non-Current Liabilities574.531,236.941,223.901,200.33
Total Liabilities5,025.606,417.045,604.287,126.19
Total Equity8,737.889,831.8010,533.6913,229.15
Total Liabilities & Shareholder’s Equity13,763.4816,248.8416,137.9720,355.34
Total Common Shares Outstanding95.9295.9295.9295.92
Shares outstanding numbers in cr. Other numbers in ₹ cr

Balance Sheet

Lower than Industry Debt to Equity Ratio

Over the last 5 years, the debt to equity ratio has been 9.09%, vs industry avg of 10.09%

Lower than Industry Current Ratio

Over the last 5 years, current ratio has been 171.57%, vs industry avg of 183.87%

Cash Flow Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash-821.84434.29-351.222,492.41
Changes in Working Capital-1,160.39-1,391.71-1,341.59-1,286.18
Capital Expenditures1,425.981,150.79403.54281.87
Free Cash Flow687.461,318.752,634.613,401.48
All numbers in ₹ cr

Cash Flow Statement

Higher than Industry Free Cash Flow Growth

Over the last 5 years, free cash flow growth has been 18.99%, vs industry avg of 15.83%

Peers of Asian Paints

Asian Paints Infographics - Peers
Asian Paints Infographics – Peers
StockPE RatioPB RatioDividend Yield
Asian Paints Ltd100.0423.740.55%
Berger Paints India Ltd100.5121.380.38%
Kansai Nerolac Paints Ltd58.577.590.91%
Indigo paints Ltd135.2517

Key takeaways

  • Asian Paints stock gave highest PE ratio compared to its peers with Berger paints.
  • This stock have highest PB ratio compared to its peers.
  • Kansai Nerolac Paints have highest dividend yield compared to other peers.

Read more about PE ratio with infographics and Dividend infographics

Asian Paints Shareholdings

Asian Paints Infographics - Shareholding
Asian Paints Infographics – Shareholding

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings are insignificant

Institutional Holdings Trend

Mutual Fund Holding

In last 3 months, mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In last 3 months, foreign institutional holding of the company has almost stayed constant

InvestorsMar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21
Promoters 52.7952.7952.7952.7952.7952.7952.7952.7952.7952.7952.7952.63
FIIs 16.3316.6516.9517.2417.2118.2119.8421.1320.3820.7220.9620.48
DIIs 9.518.9510.5210.169.818.958.127.027.277.266.847.15
Government 0.050.10.130.130.140.080.080.080.080.040.040.04
Public 21.3221.5119.6119.6920.0419.9619.1618.9819.4819.1819.3519.68
Others 00000000000.020.02

Asian Paints Dividend/Split

Asian Paints Infographics - Dividend/Split
Asian Paints Infographics – Dividend/Split

Dividend table

Cash DividendDividend/ShareEx-Date
Interim₹3.6528-Oct-21
Cash DividendDividend/ShareEx-Date
Final₹14.5010-Jun-21
Cash DividendDividend/ShareEx Date
Interim₹3.3528-Oct-20
Cash DividendDividend/ShareEx-Date
Final₹1.5023-Jul-20
Cash DividendDividend/ShareEx-Date
Interim 2₹7.153-Mar-20

Stock Split table

Share SplitRatioEx-Date
Face Value Change from 10 To 11:1030-Jul-13

Read more about dividend and dividend yield with infographics

Strength and Limitations

Strength

  • The company has shown a good profit growth of 17.23% for the Past 3 years.
  • Company has been maintaining healthy ROE of 27.66% over the past 3 years.
  • Company has been maintaining healthy ROCE of 38.55% over the past 3 years.

Limitations

  • The company has shown a poor revenue growth of 9.37% for the Past 3 years.
  • The company is trading at a high PE of 98.96.
  • The company is trading at a high EV/EBITDA of 63.96.

Expert Forecast

Asian Paints Infographics - Expert Forecast
Asian Paints Infographics – Expert Forecast

The stock forecast of Asian Paints stock for the year 2023

HIGH

Rs.4225

MEDIAN

Rs.3482

LOW

Rs.2625

Future stock price targets of Asian Paints stock

Target of Asian PaintsFuture Stock Price
20234000 to 4200
20256800 to 7000
203025000 to 27000
203595000 to 98000
2040200000 to 220000

Please Note

All the views and contents mentioned in this blog are merely for educational purposes and are not recommendations or tips offered to any person(s) with respect to the purchase or sale of the stocks/futures. I do not accept any liability/loss accruing from the use of any content from this blog. All readers of this blog must rely on their own discretion and neither any analyst nor any publisher shall be responsible for the outcome.

Stock Forecast Predictions

Asian Paints Infographics - Predictions
Asian Paints Infographics – Predictions

With the calculations on the basis of CAGR, the long-term investment in Asian Paints stock comes very amazing numbers. Look at the table below (Investment value 31680)

Prediction of Wipro StockFuture Investments
After 1 yearRs.40328
5 yearRs.105907
10 yearRs.354053
15 yearRs.1183617
20 yearRs.3956883
25 yearRs.13228032
Future values are calculated using 27.3% CAGR (Asian Paints)

Conclusion

Looking at the fundamentals of Asian Paints with infographics, this company is very strong and going very well at the CAGR rate of 27.3% from the last 5 years. It is a good opportunity for long-term investors.

This company is very strong and leading in its core business and among the top leaders. Investors showed good interest in this stock.

Let’s look at the Matrics of Asian Paints stock

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
100.0425.2523.743.210.55%1.53%

Check Asian Paints on NSE Site

Frequently Asked Questions

  1. Is Asian Paints a good stock to buy?

    Yes, it is always a good decision to invest in such fundamentally strong stock. Asian paints is been good choice for the investors and this company is leader in its core sector.

  2. Is Asian Paints a listed company?

    Asian Paints is listed on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). This stock is in Nifty 50 index list of NSE.

  3. Is Asian Paints a joint-stock company?

    PPG Asian Paints, (earlier known as Asian PPG Industries Pvt Ltd.), established in March 1997, is a 50:50 joint venture between Asian Paints

  4. Target Price of Asian Paints in 2025

    As per the expert forecast, Asian Paints could reach to the levels of 6800 to 7000.

  5. Target Price of Asian Paints in 2030

    As per the expert forecast, Asian Paints could reach to the levels of 25000 to 27000.

Why Stock forecast by Kamlesh Rode?

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