Asian Paints Fundamental Analysis: Mastering The Market

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Asian Paints- About the company

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Asian Paints Essentials- Fundamental And Financial Analysi

Asian Paints Shareholding Pattern

Shareholders Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023
Promoters  52.79% 52.79% 52.79% 52.79% 52.63% 52.63% 52.63% 52.63% 52.63% 52.63% 52.63% 52.63%
FIIs  21.13% 20.38% 20.72% 20.96% 20.48% 19.45% 18.51% 18.56% 18.11% 17.02% 17.48% 17.65%
DIIs  7.02% 7.27% 7.26% 6.84% 7.15% 7.57% 8.42% 8.74% 9.16% 9.96% 10.01% 10.01%
Government  0.08% 0.08% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.05% 0.05% 0.05%
Public  18.98% 19.48% 19.18% 19.35% 19.68% 20.29% 20.37% 19.99% 20.02% 20.32% 19.82% 19.64%
Others  0.00% 0.00% 0.00% 0.02% 0.02% 0.02% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%

Fundamental statements of Asian paints in Last 10 years

Profit & Loss | Income statements

Asian paints fundamental analysis: 10 years profit and Loss statements.
Profit and Loss statements of Asian Paints in 10 years. Source:

EPS and Dividends

Company has a rising Earnings Per Share, or EPS records for the past 10 years indicating a remarkable level of earning consistency. It suggests that Asian Paints has been able to generate increasing profits on a per-share basis, reflecting its ability to effectively manage and grow its business operations. A thing to mention here is that, if in the past 10 years, if the EPS of the company is rising, then it signifies the potential for continued growth and enhanced shareholder value. The company has made a significant leap in its EPS from March 2012 to March 2023, skyrocketing from Rs. 9.99 to an impressive Rs. 42.75.

Asian Paints has witnessed an impressive increase in its dividend payout from 40% in March 2012 to a noteworthy 60% in March 2023.

Overall, Asian Paints’ consistent revenue growth, rising operating profit, and impressive net profit highlight its success in generating increasing profits over the past decade. These numbers speak to the company’s effective business strategies and its ability to seize opportunities for growth in the market.

Cash Flows statements

Cash flow statements, which show the inflows and outflows of cash over a specific time, provide useful insights into a company’s cash flow patterns. The cash created or used in a company’s core operations can be seen in one of these categories, cash flows from operational activities. Surprisingly, the company’s cash flow from operational operations has seen a significant boost, rising from 881 crores in March 2012 to an astonishing 4,222 crores in March 2023—a growth that is over five times more than the industry average.

This substantial increase in cash flow from operational activities is a positive indicator that the company’s core businesses are producing plenty of cash to pay costs and support potential future expansion.

Asian paints fundamental analysis: 10 years records of cash flow statements
Cash Flow statements of Asian Paints in the last 10 years. Source:

If we analyse both the Income statement and the Cash Flows statements together, then we notice an interesting point that the cash flows from operational activities > Net Income. That is cash flows from operational activities in the March quarter of FY 2023 is 4,222 crores and Net income or Net profit in the same period is 4,100 crores. This consistent growth in cash flow demonstrates the company’s financial stability and underscores its capability to generate healthy profits from its primary business activities.

Overall, the notable surge in cash flow from operating activities implies that the company is on a positive trajectory.

Highlighting some important aspects

Over the past five years, Asian Paints Ltd has shown a steady growth in terms of profit, with a CAGR of 17%. This signifies a consistent increase in their profitability over this period. However, in the trailing twelve months (TTM), the company has experienced even more remarkable profit growth, achieving a growth rate of 30%.

The share price has risen by 26% over the past three years and by 24% in the last one year. In the last year alone, the company’s share price has increased from Rs 2,820.6 to Rs 3,347.2, which translates to a gain of Rs 526.55 or approximately 18.67%.

Company has a good return on equity track record as 3 Years ROE stands at 27.1% and one year ROE stands at 28%.

Asian Paints Fundamental analysis: One year Income Statement
Income Statement of Asian Paints. Source:

Despite positive performance indicators, Asian Paints Ltd. faces limitations such as a high PE ratio of 77.81, suggesting a relatively high market price compared to its profits per share. The EV/EBITDA ratio of 50.27 indicates a high valuation relative to operational earnings. Additionally, the stock is trading at 20.6 times its book value implying that investors have high expectations for the company’s future growth prospects.

A closer look at company’s annual income Statement

In the last year, Asian Paints Ltd. experienced a notable increase in annual revenue, which rose by 18.3% to reach Rs 34,875.1 Crores. Furthermore, the company’s annual net profit showed a significant growth of 35.5% to Rs 4,106.5 Crores during the same period.

Asian Paints Ltd.’s stock price increased little over the past year, by 22.8%, behind its sector by 8.8%. This means that the company’s stock performance was less strong than the sector’s average for comparable firms. Asian Paints Ltd. maintains a favourable debt to equity ratio of 0.1, showing a healthy balance between debt and equity in terms of financial health.

The company’s PE ratio is 78.2, greater than the sector’s PE ratio of 69, which is something to keep in mind. This implies that, in comparison to its business competitors, investors are paying more for the company’s earnings.

Asian Paints fundamental analysis. Financial report.
Financial report of Asian Paints. Source:

ASIANPAINT earnings for the last quarter are 12.87 INR whereas the estimation was 11.75 INR which accounts for 9.53% surprise. Company revenue for the same period amounts to 87.87B INR despite the estimated figure of 87.59B INR. 

Estimated earnings for the next quarter are 12.96 INR, and revenue is expected to reach 95.57B INR.


In conclusion, a detailed Asian paints fundamental analysis highlights the need for cautious consideration and a thorough evaluation of potential risks. Although Asian Paints Ltd. has demonstrated robust profitability and growth through increased annual revenue and net profit, it is crucial to take into account the high PE ratio, EV/EBITDA ratio, and P/B ratio, which suggest that the stock may be trading at a premium relative to its financial fundamentals.

That being said, it is important to note that Asian Paints Ltd. has a stable growth history and maintains manageable levels of debt. The company has demonstrated effective asset utilization and possesses a strong understanding of how to maximize its resources.

That’s all for today’s post. Hope you get some valuable insight from here.

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The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.

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