⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ASIANPAINT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ASIANPAINT | Market Cap | 2,17,014 Cr. | Current Price | 2,263 ₹ | High / Low | 2,986 ₹ |
| Stock P/E | 54.0 | Book Value | 199 ₹ | Dividend Yield | 1.10 % | ROCE | 27.3 % |
| ROE | 20.7 % | Face Value | 1.00 ₹ | DMA 50 | 2,430 ₹ | DMA 200 | 2,530 ₹ |
| Chg in FII Hold | 1.14 % | Chg in DII Hold | -0.42 % | PAT Qtr | 1,146 Cr. | PAT Prev Qtr | 956 Cr. |
| RSI | 39.5 | MACD | -68.2 | Volume | 8,99,653 | Avg Vol 1Wk | 11,00,582 |
| Low price | 2,163 ₹ | High price | 2,986 ₹ | PEG Ratio | 7.64 | Debt to equity | 0.08 |
| 52w Index | 12.2 % | Qtr Profit Var | 3.80 % | EPS | 39.4 ₹ | Industry PE | 32.2 |
📊 Financials
- Revenue & Profitability: PAT rose from ₹956 Cr. to ₹1,146 Cr., showing steady growth (+3.8%). EPS at ₹39.4 reflects strong earnings capacity.
- Margins & Returns: ROCE at 27.3% and ROE at 20.7% are excellent, highlighting strong efficiency and profitability.
- Debt & Liquidity: Debt-to-equity ratio of 0.08 indicates very low leverage, ensuring financial resilience.
- Cash Flow: Dividend yield of 1.10% provides moderate shareholder returns.
💹 Valuation
- P/E Ratio: 54.0 vs Industry PE of 32.2 — trading at a premium valuation.
- P/B Ratio: Current price ₹2,263 vs Book Value ₹199 — ~11.4x book value, expensive relative to assets.
- PEG Ratio: 7.64 — suggests stretched valuation relative to growth.
- Intrinsic Value: Current price is above fair value, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in paints and coatings with strong brand leadership and wide distribution network.
- High ROCE and ROE reflect operational excellence and competitive strength.
- Premium pricing power and brand loyalty provide long-term resilience.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹2,200 – ₹2,250, near support levels.
- Long-Term Holding: Strong fundamentals and brand leadership make it a good candidate for long-term holding, though valuations are stretched. Accumulate on dips.
✅ Positive
- Excellent ROCE (27.3%) and ROE (20.7%) highlight superior efficiency.
- Debt-to-equity ratio of 0.08 ensures financial stability.
- Quarterly PAT growth (+3.8%) highlights earnings consistency.
- FII holdings increased by 1.14%, showing foreign investor confidence.
⚠️ Limitation
- High P/E ratio (54.0) compared to industry average (32.2).
- PEG ratio of 7.64 indicates stretched valuation relative to growth.
- Dividend yield of 1.10% is modest.
📉 Company Negative News
- DII holdings declined by 0.42%, showing reduced domestic institutional confidence.
- RSI at 39.5 and MACD negative (-68.2) reflect bearish technical signals.
📈 Company Positive News
- Quarterly PAT growth highlights strong operational performance.
- FII holdings increased significantly, showing foreign investor confidence.
- Strong brand loyalty supports long-term resilience.
🏭 Industry
- Paints and coatings sector benefits from housing, infrastructure, and consumer demand.
- Industry PE at 32.2 is lower than company’s valuation, highlighting premium pricing for ASIANPAINT.
🔎 Conclusion
ASIANPAINT demonstrates strong fundamentals with excellent efficiency, low debt, and consistent earnings growth. However, valuations are stretched, trading at a premium compared to industry peers. Best strategy: accumulate cautiously near ₹2,200–₹2,250 and hold for long-term gains, leveraging brand leadership and industry growth.