Grasim Paints’s fundamental analysis highlights essential financial metrics, including a total market capitalisation of ₹1,63,235 crore, a debt-to-equity ratio of 1.70, and a return on equity (ROE) of 6.90%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
Table of Contents
Overview of the Paint Sector
The paint sector is a key component of the global economy, encompassing the production of coatings for various applications, including residential, commercial, industrial, and automotive. It serves industries like construction, automotive, and manufacturing, with constant innovations in formulations.
With growing demand for eco-friendly products, the paint industry is increasingly focused on sustainability. Manufacturers are developing low-VOC and water-based paints to meet environmental regulations, while also advancing durability and aesthetic properties. This shift aims to balance performance with minimal environmental impact.
Financial Analysis of Grasim Paints India Ltd
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 1,30,978 | 1,17,627 | 95,701 | 76,398 |
| Expenses | 1,03,783 | 96,038.00 | 75,270.00 | 57,769 |
| Operating Profit | 27,195 | 21,589.00 | 20,431.00 | 18,629 |
| OPM % | 20.56 | 17.81 | 21.17 | 24 |
| Other Income | 694.74 | 3,524.00 | 752.23 | 710 |
| EBITDA | 28,459 | 25,201.00 | 21,253.00 | 19,681 |
| Interest | 9,277 | 6,044.00 | 4,776 | 5,723 |
| Depreciation | 5,001 | 4,552.00 | 4,161 | 4,033 |
| Profit Before Tax | 13,611 | 14,518.00 | 12,247 | 9,582 |
| Tax % | 27.73 | 25.13 | 15.81 | 32 |
| Net Profit | 9,926.00 | 11,078 | 11,206.00 | 6,987 |
| EPS | 85.42 | 103.69 | 114.69 | 65 |
| Dividend Payout % | 11.71 | 9.64 | 8.72 | 14 |
* Consolidated Figures in Rs. Crores
Grasim Paints India Limited Company Metrics
Grasim Paints India Ltd’s financial metrics showcase consistent growth: In FY24, sales reached ₹1,30,978 crore, up from ₹1,17,627 crore in FY23 and ₹95,701 crore in FY22. Operating profit improved to ₹27,195 crore, reflecting robust financial health and operational efficiency.
Sales Growth: Sales grew steadily, reaching ₹1,30,978 crore in FY24, an 11.34% rise from ₹1,17,627 crore in FY23. The prior year, FY23, saw a 22.85% increase from ₹95,701 crore in FY22, demonstrating a consistent upward trend in revenue generation.
Expense Trends: Expenses increased to ₹1,03,783 crore in FY24 from ₹96,038 crore in FY23, reflecting an 8.08% rise. In FY23, expenses were 27.55% higher than ₹75,270 crore in FY22, indicating controlled growth despite rising operational costs.
Operating Profit & Margins: Operating profit grew to ₹27,195 crore in FY24, a 25.98% rise over FY23’s ₹21,589 crore. OPM improved to 20.56% from 17.81% in FY23. FY22’s profit of ₹20,431 crore showcased margins of 21.17%, slightly better than FY23.
Profitability Indicators: Net profit dipped to ₹9,926 crore in FY24, a 10.41% drop from ₹11,078 crore in FY23. FY22’s profit stood at ₹11,206 crore. Earnings per share (EPS) declined to ₹85.42 in FY24 from ₹103.69 in FY23, reflecting moderated profit growth.
Taxation & Dividend: The tax rate increased to 27.73% in FY24 from 25.13% in FY23. Dividend payout rose to 11.71% in FY24 from 9.64% in FY23. In FY22, the tax was 15.81%, and the dividend stood at 8.72%, reflecting improved shareholder returns.
Key Financial Metrics: EBITDA surged to ₹28,459 crore in FY24, up from ₹25,201 crore in FY23 and ₹21,253 crore in FY22. Interest expenses rose significantly to ₹9,277 crore in FY24, while depreciation was ₹5,001 crore, indicating increasing capital investments.
Grasim Paints Stock Performance
Grasim Paints has shown consistent growth in stock performance. Over the past year, it delivered a return of 16.6%, with a 15.4% return over three years and an impressive 27.4% return over five years, reflecting its strong market presence and growth potential.
| Duration | Return |
| 1 year | 16.6 % |
| 3 years | 15.4 % |
| 5 years | 27.4 % |
Grasim Paints Shareholding Pattern
The shareholding Pattern of Grasim Paints shows a stable distribution over the years. Promoters maintain a steady stake of around 43%, while FIIs and DIIs have increased their holdings. The public shareholding has slightly reduced, with an overall increase in the number of shareholders.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 42.76% | 42.75% | 43.05% | 43.11% |
| FIIs | 12.71% | 12.45% | 12.70% | 13.78% |
| DIIs | 14.43% | 16.82% | 16.69% | 17.75% |
| Public | 29.87% | 27.69% | 27.24% | 25.04% |
| Others | 0.23% | 0.30% | 0.31% | 0.31% |
| No. of Shareholders | 2,62,650 | 2,47,265 | 2,52,317 | 2,65,202 |
Grasim Paints Partnerships and acquisitions
Grasim Paints has made significant moves in the acquisition and partnership space. In March 2019, the company acquired 100% equity shareholding in Soktas India Private Limited for INR 165 Crores, expanding its presence in textiles and manufacturing.
In 2021, Grasim ventured into the paints business, announcing a Rs 10,000 crore investment to become the second-largest player in the Indian market. This strategic move aims to capture significant market share and position Grasim as a major competitor in the paints sector.
Grasim is also in talks to acquire a majority stake in Akzo Nobel India, a leading paint maker, with Asian Paints being another key contender. This potential acquisition further strengthens Grasim’s growth prospects in the paints industry.
Grasim Paints Peer comparison
The competitor analysis of Grasim Paints highlights its strong market capitalization of ₹163,234.67 Crore and a P/E ratio of 34.84. In comparison, competitors like Bombay Dyeing have a market cap of ₹3,904.56 Crore with a P/E of 1.10, and Filatex India shows a P/E of 23.46.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| Grasim Inds | 2,478.85 | 163234.67 | 34.84 | 6.9 | 9.3 | -9.56 | 16.65 | 0.4 |
| Bombay Dyeing | 189.05 | 3904.56 | 1.10 | -103.74 | 0.97 | -11.86 | 25.23 | 0.63 |
| Filatex India | 61.16 | 2714.62 | 23.46 | 9.6 | 12.72 | 5.2 | 23.15 | 0.32 |
| Century Enka | 620.6 | 1356.01 | 18.44 | 2.56 | 3.61 | 5.92 | 43.63 | 1.61 |
| Indo Rama Synth. | 40.1 | 1,047.07 | -7.19 | -42.71 | -4.37 | -16.42 | -23.47 | 0 |
| Vardhman Acrylic | 54.16 | 435.24 | 25.93 | 7.23 | 8.89 | -3.5 | -8.59 | 3.7 |
| Pasupati Acrylon | 44.22 | 394.13 | 11.08 | 4.09 | 6.09 | 12.09 | 18.24 | 0 |
Future of Grasim Paints
Grasim Paints is poised for growth, focusing on expanding its product portfolio and increasing market penetration in both urban and rural markets. Its strategic acquisitions and partnerships are expected to enhance its operational capacity and strengthen its market position.
The company is leveraging advancements in technology to innovate and improve product offerings, particularly in eco-friendly and sustainable paint solutions. Grasim’s emphasis on digital transformation and automation aims to optimize production processes and reduce costs, boosting its profitability in the long term.
With its strong market presence and continuous innovation, Grasim Paints is expected to see significant expansion in the decorative and industrial paint segments. Its future growth will be driven by strong brand equity, a diverse product range, and an increasing focus on customer satisfaction.
How to Invest in Grasim Paints Share?
To invest in Grasim Paints shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze Grasim Paints’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for Grasim on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
Grasim Paints – FAQs
Grasim Paints has a market capitalization of ₹1,63,235 Crore as of the latest available data. This reflects its strong presence in the paint industry and highlights its significant position in the market.
Grasim Paints is a leading player in the Indian paint industry, but it is not the dominant leader. Companies like Asian Paints and Berger Paints have a larger market share. However, Grasim is growing steadily and expanding its market presence.
Grasim Paints has made several strategic acquisitions. These include merging with Aditya Birla Chemicals India Limited in 2015 and Aditya Birla Nuvo in 2017. In 2019, it acquired Soktas India Private Limited for an enterprise value of INR 165 Crores.
Grasim Paints manufactures and sells a wide range of decorative and industrial paints. The company is engaged in the production of high-quality paints, coatings, and related products. It focuses on providing solutions for both residential and commercial applications.
Grasim Paints is a part of the Aditya Birla Group, one of India’s largest conglomerates. The company operates under the leadership of the group, with its chairman and managing director overseeing its strategic direction and growth initiatives.
The main shareholders of Grasim Paints include its promoters, who hold a substantial portion of shares (43.11% as of September 2024), along with institutional investors such as FIIs (13.78%) and DIIs (17.75%). Public shareholders own around 25.04%.
Grasim Paints operates in the paint industry, which falls under the broader chemicals and coatings sector. The company manufactures decorative and industrial paints, serving residential, commercial, and industrial customers, and is involved in the production of paint-related products.
Grasim Paints has seen substantial growth in its order book, reflecting its expanding market footprint. With increased demand for paint products and improved distribution channels, the company is poised for significant growth in the upcoming year.
To invest in Grasim Industries shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
Grasim Paints currently trades at a Price-to-Earnings (P/E) ratio of 34.8, indicating a relatively high valuation compared to the industry average. Whether it is overvalued or undervalued depends on future earnings growth and market conditions.
The future of Grasim Paints looks promising with continued expansion in the paint sector. It is expected to grow further through acquisitions, product innovation, and strengthening its presence in both domestic and international markets, thus solidifying its position in the industry.
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.
