Asian Paints Ltd

About

Set up in 1942, the Asian Paints group is the largest paint manufacturer in India also engaged in the business of manufacturing of 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 bath, sinks, washbasins and similar articles. Recently introduced Lightings, Furnishings and Furniture thus adding more products in the Home décor and Interior Design category.

Key Points

Revenue Breakup [1]
Decorative Coatings - 83.70%
Industrial Coatings - 2.40%
International Operations - 11.60%
Home Improvement Business - 2.30%

See full details
  • Market Cap 330,789 Cr.
  • Current Price 3,449
  • High / Low 3,505 / 1,908
  • Stock P/E 97.4
  • Book Value 126
  • Dividend Yield 0.52 %
  • ROCE 38.4 %
  • ROE 28.2 %
  • Face Value 1.00

Pros

  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has a good return on equity (ROE) track record: 3 Years ROE 27.73%
  • Company has been maintaining a healthy dividend payout of 48.90%

Cons

  • Stock is trading at 27.36 times its book value
  • The company has delivered a poor sales growth of 9.37% over past five years.
  • Debtor days have increased from 28.98 to 35.67 days.
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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
3,914 4,536 4,235 4,380 4,278 4,657 3,879 2,447 4,527 5,873 5,671 4,786
3,137 3,499 3,415 3,290 3,405 3,539 3,103 1,980 3,377 4,219 4,448 3,904
Operating Profit 777 1,037 820 1,090 873 1,118 776 467 1,150 1,654 1,222 882
OPM % 20% 23% 19% 25% 20% 24% 20% 19% 25% 28% 22% 18%
Other Income 73 70 72 86 114 93 32 52 94 121 99 106
Interest 19 22 23 19 20 20 19 15 15 17 25 16
Depreciation 123 144 157 170 174 174 172 167 169 169 193 176
Profit before tax 708 941 712 986 793 1,017 616 337 1,060 1,590 1,104 795
Tax % 32% 33% 33% 34% 0% 25% 27% 25% 25% 25% 26% 25%
Net Profit 481 632 478 652 791 759 452 252 793 1,188 820 596
EPS in Rs 5.01 6.59 4.98 6.80 8.24 7.91 4.71 2.63 8.27 12.38 8.54 6.21

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
4,891 6,044 7,595 8,539 9,936 11,110 11,830 12,647 14,168 16,392 17,194 18,517 20,856
3,971 4,886 6,243 6,988 8,216 9,095 9,415 9,973 11,242 12,885 13,337 14,024 15,948
Operating Profit 920 1,158 1,352 1,551 1,719 2,015 2,415 2,674 2,926 3,507 3,857 4,493 4,908
OPM % 19% 19% 18% 18% 17% 18% 20% 21% 21% 21% 22% 24% 24%
Other Income 265 75 141 126 225 173 249 300 275 285 324 366 420
Interest 19 16 31 34 29 31 27 22 24 81 78 72 73
Depreciation 61 94 99 127 212 223 235 295 311 541 690 697 707
Profit before tax 1,105 1,122 1,363 1,516 1,703 1,934 2,403 2,657 2,866 3,170 3,413 4,090 4,548
Tax % 30% 31% 30% 31% 31% 31% 32% 32% 34% 33% 22% 25%
Net Profit 774 775 958 1,050 1,169 1,327 1,623 1,802 1,895 2,132 2,654 3,053 3,397
EPS in Rs 8.07 8.08 9.99 10.95 12.19 13.84 16.92 18.78 19.75 22.23 27.67 31.82 35.40
Dividend Payout % 33% 40% 40% 42% 43% 44% 44% 55% 44% 47% 43% 56%
Compounded Sales Growth
10 Years:12%
5 Years:9%
3 Years:9%
TTM:37%
Compounded Profit Growth
10 Years:15%
5 Years:14%
3 Years:17%
TTM:49%
Stock Price CAGR
10 Years:27%
5 Years:24%
3 Years:39%
1 Year:79%
Return on Equity
10 Years:30%
5 Years:27%
3 Years:28%
Last Year:28%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
96 96 96 96 96 96 96 96 96 96 96 96
Reserves 1,461 1,879 2,392 2,926 3,505 4,134 5,830 6,999 7,702 8,747 9,357 11,995
Borrowings 69 74 168 54 48 40 36 39 11 614 24 22
1,508 1,806 2,140 2,570 3,071 3,004 2,764 3,224 3,778 4,226 4,110 5,469
Total Liabilities 3,134 3,855 4,796 5,646 6,720 7,274 8,725 10,358 11,588 13,683 13,588 17,583
707 1,057 1,009 2,102 2,012 1,965 2,629 2,605 2,569 5,221 4,961 4,603
CWIP 381 40 603 53 38 140 93 220 1,392 179 108 110
Investments 704 548 542 465 1,671 1,894 2,797 2,914 2,577 2,964 2,658 5,341
1,342 2,210 2,642 3,027 2,999 3,275 3,207 4,620 5,050 5,318 5,861 7,529
Total Assets 3,134 3,855 4,796 5,646 6,720 7,274 8,725 10,358 11,588 13,683 13,588 17,583

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
848 743 881 1,081 1,371 1,144 1,980 1,420 2,136 2,395 2,813 3,460
-242 -410 -592 -440 -618 -292 -863 -584 -1,371 -833 -775 -437
-239 -320 -297 -591 -560 -728 -704 -956 -1,239 -1,089 -2,501 -583
Net Cash Flow 367 13 -8 51 194 124 413 -120 -474 473 -462 2,440

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 25 21 24 27 26 24 23 29 29 28 24 36
Inventory Days 119 128 114 123 121 102 89 141 117 117 127 133
Days Payable 89 112 100 101 109 74 74 107 99 94 79 120
Cash Conversion Cycle 54 38 39 49 38 52 39 62 47 51 72 49
Working Capital Days -11 -3 -1 1 -1 8 14 31 25 23 39 41
ROCE % 74% 62% 58% 53% 50% 49% 47% 41% 39% 37% 37% 38%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79
14.87 15.67 16.33 16.65 16.95 17.24 17.21 18.21 19.84 21.13 20.38 20.72
11.24 10.38 9.51 8.95 10.52 10.16 9.81 8.95 8.12 7.02 7.27 7.26
0.10 0.10 0.05 0.10 0.13 0.13 0.14 0.08 0.08 0.08 0.08 0.04
21.00 21.06 21.32 21.51 19.61 19.69 20.04 19.96 19.16 18.98 19.48 19.18

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