ASIAN PAINTS LTD
Asian Paints is the largest home decor company in India. The 80+yr old company has major brands like Asian Paints, Berger, Apco, etc under its umbrella. The co. is into wall paints, wall coverings, waterproofing, texture painting, wall stickers, mechanized tools, adhesives, modular kitchens, sanitaryware, lightings, soft furnishings, and uPVC windows.
Key Business
Decorative Business
International Business
Industrial Business
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2022 | March 2023 | March 2024 |
| Sales | 29,101 | 34,489 | 35,495 |
| Sales Growth % | 34.03% | 18.51% | 2.92% |
| Expenses | 24,298 | 28,229 | 27,910 |
| Operating Profit | 4,804 | 6,260 | 7,585 |
| OPM % | 17% | 18% | 21% |
| Net Profit | 3,085 | 4,195 | 5,558 |
| EPS in Rs | 31.59 | 42.81 | 56.92 |
Synopsis of Financials
- Q4 showed slow overall value delivery, impacted by a total price decrease of 3.7%.
- Double-digit volume growth maintained, but overall value was depressed at -1.8%.
- For FY24, value growth was around 3% with a volume growth of 9%.
- Strong high double-digit CAGR numbers over the last four years.
- Industrial business performing well, with Industrial sales showing strong growth in both volume and value.
- Industrial JVs with PPG of U.S. performing strongly.
- Overall volume trajectory has been consistently strong with double-digit growth.
- Urban markets slightly outperforming rural markets, but both are being focused on.
- Product mix affected in Q4, but Economy and Luxury segments performing well.
- Distribution network strength highlighted, with an increase of about 40,000-45,000 retail points in the last three years.
Final Outlook
If we see last years quarterly report, we can clearly see that asian paints does not have clear growth, its revenue and profits had volatility.
Asian paints share price made high of 3576 in 2022 and then came back to its base of 2600, the again in 2023 came to its high price of 3568 then started declining till 2900 and is currently trailing at 2900 right now.
2900 is the base price where it can be bought and swing traded at 3500 again because if we see company fundamentally is standing all stable.
Hold or Sell, holding and selling in long term would be prefer but returns in long term will be around 30-40% only. If someone invest it in nifty index, it will give better returns when compared to asian paints.
Hold/Sell Is recommended
Asian-Paints-Ltd