ScoreWhy is Asian Paints Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.72%
- Healthy long term growth as Net Sales has grown by an annual rate of 8.81%
- The company is Net-Debt Free
2
Positive results in Jun 26
- OPERATING CF(Y) Highest at Rs 7,088.18 Cr
- DEBTORS TURNOVER RATIO(HY) Highest at 7.96 times
- NET SALES(Q) Highest at Rs 10,541.94 cr
3
With ROE of 20.8, it has a Expensive valuation with a 10.8 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -2.96%, its profits have risen by 26.6% ; the PEG ratio of the company is 1.8
4
High Institutional Holdings at 34.09%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
With its market cap of Rs 2,35,387 cr, it is the biggest company in the sector and constitutes 72.36% of the entire sector
- Its annual Sales of Rs 37,186.93 are 58.26% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Asian Paints should be less than 10%
- Overall Portfolio exposure to Paints should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paints)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Asian Paints for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Asian Paints
-2.96%
-0.12
23.87%
Sensex
-10.5%
-0.78
13.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.81%
EBIT Growth (5y)
6.02%
EBIT to Interest (avg)
32.77
Debt to EBITDA (avg)
0.38
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
1.75
Tax Ratio
26.60%
Dividend Payout Ratio
60.98%
Pledged Shares
9.54%
Institutional Holding
34.09%
ROCE (avg)
34.40%
ROE (avg)
23.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
47
Industry P/E
44
Price to Book Value
10.79
EV to EBIT
37.83
EV to EBITDA
31.39
EV to Capital Employed
12.67
EV to Sales
6.11
PEG Ratio
1.78
Dividend Yield
1.14%
ROCE (Latest)
30.47%
ROE (Latest)
20.77%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
OPERATING CF(Y)
Highest at Rs 7,088.18 Cr
PAT(9M)
At Rs 3,884.91 cr has Grown at 28.31%
DEBTORS TURNOVER RATIO(HY)
Highest at 7.96 times
NET SALES(Q)
Highest at Rs 10,541.94 cr
PBDIT(Q)
Highest at Rs 2,168.76 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 20.57%
PBT LESS OI(Q)
Highest at Rs 1,854.90 cr.
EPS(Q)
Highest at Rs 16.05
-2What is not working for the Company
ROCE(HY)
Lowest at 25.12%
Loading Valuation Snapshot...
Here's what is working for Asian Paints
Operating Cash Flow - Annually
Highest at Rs 7,088.18 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 10,541.94 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 2,168.76 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 20.57%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 1,854.90 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1,854.90 cr has Grown at 36.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1,359.31 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1,539.25 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 1,539.25 cr has Grown at 38.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1,109.75 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 16.05
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 7.96 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Asian Paints
Non Operating Income - Quarterly
Highest at Rs 240.85 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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