Asian Paints Ltd’s fundamental analysis underscores key financial metrics, with a market capitalization of ₹3,02,626.90 crore, a PE ratio of 60.43, a debt-to-equity ratio of 0.13, and a return on equity (ROE) of 31.4%. These figures indicate the company’s robust financial health and minimal reliance on leverage.
Content:
- Asian Paints Ltd Overview
- Asian Paints Financial Results
- Asian Paints Financial Analysis
- Asian Paints Company Metrics
- Asian Paints Stock Performance
- Asian Paints Peer Comparison
- Asian Paints Shareholding Pattern
- Asian Paints History
- How To Invest In Asian Paints Ltd Share?
- Asian Paints Limited Fundamental Analysis – FAQs
Asian Paints Ltd Overview
Asian Paints Ltd is one of India’s leading paint manufacturers, offering a wide range of products, including decorative paints, industrial coatings, and home improvement solutions. The company is known for its strong brand presence and innovative marketing strategies, which have helped it maintain a dominant market position.
The company has a market capitalization of ₹3,02,626.90 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading near its 52-week high of ₹3,423, significantly above its 52-week low of ₹2,670, showcasing strong investor confidence. The all-time high of the stock is ₹3,590, while the all-time low is ₹36.2, reflecting the company’s long-term growth trajectory.
Asian Paints Financial Results
Asian Paints demonstrated strong financial growth from FY 22 to FY 24, with sales increasing from ₹29,101 crore to ₹35,495 crore, EBITDA rising from ₹5,184 crore to ₹8,273 crore, and EPS growing from ₹31.59 to ₹56.95. Return on Net Worth (RoNW) improved from 23.48% to 28.88%.
- Revenue Trend
Asian Paints demonstrated strong revenue growth from FY 22 to FY 24, with sales rising from ₹29,101 crore in FY 22 to ₹34,489 crore in FY 23, and further to ₹35,495 crore in FY 24. This reflects robust market demand and effective business strategies.
- Equity and Liabilities
The company’s equity and liabilities structure showed consistent growth and stability. Equity capital remained steady at ₹96 crore, while reserves increased from ₹13,716 crore in March 2022 to ₹18,632 crore in March 2024. Total liabilities grew from ₹22,958 crore to ₹29,901 crore.
- Profitability
Asian Paints maintained a strong operating profit margin (OPM) with a steady increase from 17% in FY 22 to 21% in FY 24. This reflects the company’s ability to efficiently manage operations and sustain profitability despite challenges.
- Earnings per Share (EPS)
Earnings per Share (EPS) showed significant growth, increasing from ₹31.59 in FY 22 to ₹56.95 in FY 24. This rise indicates enhanced profitability and the company’s ability to generate higher returns for shareholders over time.
- Return on Net Worth (RoNW)
Return on Net Worth (RoNW) improved consistently, rising from 23.48% in FY 22 to 28.88% in FY 24. This trend showcases the company’s ability to effectively utilize shareholders’ equity to generate substantial returns, highlighting strong financial management.
- Financial Position
The company’s financial position strengthened significantly, with EBITDA increasing from ₹5,184 crore in FY 22 to ₹8,273 crore in FY 24. This growth underscores improving financial health and operational efficiency, reinforcing Asian Paints’ solid market position.
Asian Paints Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 35,495 | 34,489 | 29,101 |
| Expenses | 27,910 | 28,229 | 24,298 |
| Operating Profit | 7,585 | 6,260 | 4,804 |
| OPM % | 21 | 18 | 17 |
| Other Income | 687.96 | 337.61 | 264.31 |
| EBITDA | 8,273 | 6,646 | 5,184 |
| Interest | 205.17 | 144.45 | 95.41 |
| Depreciation | 853 | 858.02 | 816.36 |
| Profit Before Tax | 7,215 | 5,595 | 4,156 |
| Tax % | 24.81 | 26.69 | 26.54 |
| Net Profit | 5,558 | 4,195 | 3,085 |
| EPS | 56.95 | 42.83 | 31.59 |
| Dividend Payout % | 58.47 | 59.89 | 60.62 |
All values in ₹ Crores.
Asian Paints Company Metrics
Asian Paints Ltd has a market cap of ₹3,02,626.90 crore, an EBITDA of ₹8,273 crore, and a book value of ₹195 per share. With a debt of ₹2,474 crore, the company maintains strong financial health and stability.
- Market Capitalization
Asian Paints Ltd has a market capitalization of ₹3,02,626.90 crore, reflecting its significant market value and leading position in the Indian paint and coatings industry.
- EBITDA
Asian Paints Ltd achieved an EBITDA of ₹8,273 crore in FY 24, up from ₹6,646 crore in FY 23 and ₹5,184 crore in FY 22, showcasing consistent growth in profitability.
- Face Value
The face value of Asian Paints’ shares is ₹1.00, representing the nominal value of each share as stated on the share certificate, crucial for dividend calculations.
- Asset Turnover
Asian Paints Ltd has an asset turnover ratio of 1.27, indicating the company’s efficiency in utilizing its assets to generate revenue, reflecting strong operational management.
- Debt
Asian Paints Ltd carries a relatively low debt of ₹2,474 crore, demonstrating prudent financial management and a conservative approach to leverage, ensuring financial stability.
- Dividend Yield
Asian Paints Ltd offers a dividend yield of 1.06%, providing shareholders with a steady income while balancing reinvestment for future growth and financial sustainability.
- Book Value
Asian Paints Ltd has a book value of ₹195 per share, indicating the net asset value of the company divided by its outstanding shares, showcasing its intrinsic financial strength.
Asian Paints Stock Performance
Asian Paints showed varied returns on investment with -3.21% over 1 year, 1.25% over 3 years, and 14.6% over 5 years, indicating fluctuating performance and moderate long-term growth for investors.
| Period | Return on Investment (%) |
| 1 Year | -3.21 |
| 3 Years | 1.25 |
| 5 Years | 14.6 |
Example: If an investor had invested ₹1,000 in Asian Paints’ stock:
1 year ago, their investment would be worth ₹968.
3 years ago, their investment would have grown to ₹1,012.50.
5 years ago, their investment would have increased to approximately ₹1,146.
This reflects the company’s mixed performance and steady long-term returns for investors.
Asian Paints Peer Comparison
Asian Paints leads in market capitalization among peers, with a strong ROE of 31.44% and a high P/E ratio of 59.57. Despite a slight negative 1-year return, it outperforms competitors like Berger and Kansai Nerolac in ROCE and dividend yield, showcasing robust profitability and stability.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| 1 | Asian Paints | 3154.65 | 302593.33 | 60.43 | 31.44 | 52.96 | -3.21 | 37.5 | 1.06 |
| 2 | Berger Paints | 565.7 | 65949.08 | 56.51 | 23.54 | 10.01 | -3.62 | 27.51 | 0.62 |
| 3 | Kansai Nerolac | 294.3 | 23790.67 | 35.68 | 12.79 | 8.39 | -8.66 | 16.56 | 0.85 |
| 4 | Akzo Nobel | 3271.6 | 14898.97 | 34.54 | 32.33 | 94.73 | 18.34 | 42.29 | 2.29 |
| 5 | Indigo Paints | 1449.4 | 6902.19 | 47.99 | 17.52 | 30.2 | -4.36 | 23.18 | 0.24 |
| 6 | Shalimar Paints | 137.95 | 1154.8 | NA | -19.81 | -11.31 | -12.13 | -12.28 | 0 |
| 7 | MCON Rasayan | 186 | 117.25 | 52.58 | 15.37 | 3.55 | 18.47 | 17.32 | 0 |
Asian Paints Shareholding Pattern
From FY 2022 to FY 2024 the promoter holdings in Asian Paints remained stable at 52.63%. Foreign Institutional Investors (FIIs) reduced their stake from 19.45% to 15.89%, while Domestic Institutional Investors (DIIs) increased their holdings from 7.58% to 11.67%. Retail participation remained consistent.
| All values in % | FY 2024 | FY 2023 | FY 2022 |
| Promoters | 52.63 | 52.63 | 52.63 |
| FII | 15.89 | 17.02 | 19.45 |
| DII | 11.67 | 10.01 | 7.58 |
| Retail & others | 19.82 | 20.36 | 20.35 |
Asian Paints History
Asian Paints, founded in 1942 by four friends in Mumbai, started as a small paint company. Over the years, it evolved into India’s largest paint manufacturer, expanding its reach across the country with innovative products and marketing strategies.
In the 1960s, Asian Paints pioneered the concept of consumer-centric branding in India, launching its iconic mascot, Gattu, created by R.K. Laxman. This marked a turning point, establishing the company as a household name synonymous with quality and reliability.
The 1990s saw Asian Paints expand internationally, entering markets across Asia and the Middle East. The company also diversified its product offerings, venturing into industrial coatings, home improvement, and decor solutions, further solidifying its market leadership.
Today, Asian Paints is a global leader with a presence in over 15 countries. It continues to innovate, focusing on sustainable products and cutting-edge technologies, maintaining its position as a dominant force in the paint and coatings industry worldwide.
How To Invest In Asian Paints Ltd Share?
Investing in Asian Paints Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Asian Paints Ltd shares and place your buy order.
Asian Paints Limited Fundamental Analysis – FAQs
Asian Paints Ltd’s fundamental analysis highlights strong financial health, with a market cap of ₹3,02,626.90 crore, a PE ratio of 60.43, a low debt-to-equity ratio of 0.13, and an impressive ROE of 31.4%.
Asian Paints Ltd has a market capitalization of ₹3,02,626.90 crore, making it one of the largest and most valuable companies in the Indian paint and coatings industry.
Asian Paints Ltd is India’s largest paint manufacturer, known for its wide range of decorative and industrial coatings. Founded in 1942, the company has grown into a global leader with operations in over 15 countries.
Asian Paints was founded by four friends in 1942, but today it is a publicly-traded company with no single owner. The major shareholders include promoters, FIIs, DIIs, and retail investors.
The main shareholders of Asian Paints are promoters holding 52.63%, FIIs with 15.89%, DIIs holding 11.67%, and retail and others holding 19.82%. This diverse ownership reflects strong investor confidence.
Asian Paints operates in the paint and coatings industry, specializing in decorative paints, industrial coatings, and home improvement solutions. It is a leading player in both the Indian and international markets.
To invest in Asian Paints Ltd shares, you can buy stocks through a stockbroker like Alice Blue or an online trading platform. Ensure to analyze its market trends, and financial health, and consult with a financial advisor before investing.
Determining if Asian Paints is overvalued or undervalued requires analyzing its current market price against its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 60.43, Asian Paints may be considered overvalued based on traditional metrics, but its market leadership and consistent growth could justify this premium.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
