Trend analysis

P/E Ratio – As we can see in above chart there is no much change in price to
earnings ratio in the last five year as industry growing very well, Price to earnings
shows the how much have price to pay on 1 Rs earning of the share, When
investors buy any stock they mostly compare the ratio with industry ratio if it less
the industry’s ratio so it is undervalued and if it is more than industry’s ration so it
is overvalued which means prices of the share are high in this case So investor will
wait to buy the stock.
EPS – Earning per share indicates how much we are earns on per share it is
calculated by the net profit of the company divided by total number of shares. Here
in the above chart we can see that EPS of the industry in the last five year is
slightly different so it indicates Industry gives good return and investor will happy
to invest in the paint’s stock

ROCE % - Return on capital employed should be higher than cost of capital it

means cost which company infusing in their operations should generate the good
return in the above chart in FY 16 & 17 capital employed is good but in FY 18 it is
decreased it depends on company to company here we are seeing for industry we
can not determine the actual situation of the company but it is less than previous so
it should more.
PAT Growth – Profit after Tax it is also known as net profit of the company AS
we can see in the FY 18 It is increased by 159% which shows that industry did
well and business from the industry generated more profit but after FY 18 it again
went down so something external factors depends on this type of situation like we
can say that covid 19 is going on so all industry shut down their businesses their
quarter result of FY 21 shows losses which impacted by the covid 19 due to no
sales of the products
EBITDA margin – It shows the companies profit percentage of the revenue in the
given year I have taken a average of 4 companies to set a benchmark for industry
so here we can see the EBITDA margin is good for the industry and there is
slightly (4-5%) increase and decrease and in the last five year.

Sales Growth – Sales is the most important part of the country off course
everything comes from the sales if there is no sales so there is no profit but yes loss
can be happen to the company so Sales growth is must for every industry and
company here is not much good number in sales growth as we can see in above
chart industry it depends but in last 2 years sales growth seems good as it is
increased but in FY 21 again covid is happened so Sales growth will gain fall down
so it is very difficult to cop up with situation but industry gradually doing practices
to cop up with the situation
P/B Ratio – Price to book value shows the how much surplus assets companies
have after paying all liabilities if anyone wants to buy so how much he has to pay.
P/B more than 1 shows the greater profitability of the company. Here in above
chart we can see the good P/B ratio.