ASIAN PAINTS

REPORT

PREPARED BY
S KIRUBA SANKARI
VITHIKA NAIR
AKASH MOHAN
LAXMI JOSHI
TABLE OF CONTENTS

About the Company...… 3-16

Company Overview
Current top Management
SWOT analysis
Top Competitors
Product line
Competition strength and weaknesses
Porters Five forces analysis

Financial analysis...…… 17 to 53
Price history
Balance sheet
1. Horizontal analysis
2. Common size analysis
3.Trend analysis
Income and expenditure
1.Horizontal analysis
2.Common size analysis
3.Trend analysis
Cash Flow statement
1.Horizontal analysis
2.Common size analysis
3.Trend analysis
Ratio Analysis
Du Pont Analysis
Intrinsic Value
Recommendation...….. 54
BUSINESS
ANALYSIS

25%
 COMPANY OVERVIEW

Over the course of 25 years, Asian Paints became a corporate force and
India's leading paints company with a group turnover of Rs 217 billion..
Driven by its strong consumer-focus and innovative spirit, the company
has been the market leader in paints since 1967. Today, it is double the
size of any other paint company in India. the group has an enviable
reputation in the corporate world for professionalism, fast track
growth, and building shareholder equity. Asian Paints operates in 14
countries and has 26 paint manufacturing facilities in the world
servicing consumers in over 60 countries. Besides Asian Paints, the
group operates around the world through its subsidiaries Asian Paints
Berger, Apco Coatings, SCIB Paints, Taubmans, Asian Paints Causeway
and Kadisco Asian Paints.
Asian Paints manufactures a wide range of paints for decorative and
industrial use. In Decorative paints, Asian Paints is present in all the four
segments v.i.z Interior Wall Finishes, Exterior Wall Finishes, Enamels and
Wood Finishes. It also offers Water proofing, wall coverings and
adhesives in its product portfolio.
In the Home Improvement and Décor category, the company is present
in the Kitchen and Bath fittings space and offers various products under
Sleek and Ess Ess brand respectively. The company has recently
launched ‘Viroprotek’ range of hand, Surface and space sanitizers and
disinfectants. It is also offering ‘San Assure’ a sanitization service and
‘Safe Painting’ service for its customers.
Asian Paints has also recently launched range of Furniture, Furnishings
and Lighting Products under three brands - Nilaya, Royale and Ador,
thus offering wide spectrum of offerings in the ‘Home Décor’ category.
It has also launched ‘Beautiful Homes Service’ - an exclusive end-to-end
solution that provides consumers a personalized interior design service
with professional execution to create their dream homes.
 “To be the fore runner of inspiring
décor and to actively empower
VISION customers to create their dream
homes”
CURRENT TOP
MANAGEMENT

35%
 SWOT ANALYSIS

STRENGTH

Asian Paints has experienced steady growth over the last few financial
years, this has made sure that the company has a good market share
which is twice the size of any other paint company in India.

·Asian Paints offers a wide range of products. Its product line allows it to
cater to a wide range of markets and sectors; it is present in automotive
coatings, decorative paints, ancillaries, royal Asian Paints, and so on. This
allows them to infiltrate various business segments and sections of
society, allowing them to maintain market share.

·The Asian Paints group operates in 14 countries across four regions: Asia,
the Middle East, the South Pacific, and Africa, using eight corporate
brands: Asian Paints, Asian Paints Berger, SCIB Paints, Apco Coatings,
35%
Taubmans, Asian Paints Causeway, and Kadisco Asian Paints.

·Asian Paints has always run effective marketing campaigns.

WEAKNESS

Limited market share in the industrial paints segment, in which Kansai

Nerolac and Akzonobel compete fiercely.

·Despite being the world's largest paint company, the company's global
business is much below average, with the exception of Bangladesh,
Nepal, and the United Arab Emirates.
 SWOT ANALYSIS

OPPURTUNITIES

Given the current market conditions, Asian paints has an opportunity to

gain market share in both the industrial and vehicle sectors.

·Change is constantly present. So, while Asian Paints is the leading

company due to Royale play, there are other things it can bring in to wow
its customers and hence maintain the overwhelming market share.

·With the rise of the Indian economy and the development of

infrastructure, Asian Paints has the opportunity to expand its revenue
base and expand into smaller cities in order to improve sales.

THREAT

Asian Paints experiences strong competition due to the growing

popularity of competitors and already established competitors. Even in
the global market, world-class technologically inventive businesses
control the majority of the market share.

Any economic slowdown will have a direct negative influence on the

construction industry, and as a result, the paint business would be
impacted as well.
 PRODUCT LINE

PRODUCTS

Paints
Chemicals
Wall Coverings
Textures Painting Aid
Waterproofing solutions
Wall Stickers
Mechanized Tools
Adhesives
Modular Kitchens and Wardrobes
Bath Fittings and Sanitary ware
Sanitizers and Surface Disinfectants
Furniture, Furnishings and Lightings

SERVICES

Home Painting Services

Interior Design Services
Experience Retail Stores
Colour Consultancy
Projects
Sanitization services
TOP COMPETITORS

Jenson & Nicolson India Limited- Jenson & Nicholson

Paints Private Limited (JNPL) is a Joint Venture of
Sheenlac Paints with Jenson & Nicholson. Jenson &
Nicholson established its presence in India, in the year 1922
and the company is considered India’s second oldest paint
company. In 2016, Jenson & Nicholson India Limited and
Sheenlac collaborated to form the joint venture Jenson &
Nicholson Paints Private Limited (JNPL), with the intent to
revive the brand and build a viable alternative in the retail
Decorative Paint market in India.

Kansai Nerolac Paints - Kansai Nerolac Paints Limited

(KNPL) was formerly known as Goodlass Nerolac Paints
Ltd is India's second largest paint company and the market
leader in the industrial segment. The company has five
strategically positioned manufacturing sites around India,
as well as a strong dealer network. The company produces
a diverse range of products ranging from decorative
paints and coatings for homes, offices, hospitals, and
hotels to advanced industrial coatings for the majority of
industries
TOP COMPETITORS

Nippon Paint - Nippon Paint is headquartered in Japan,

and it is also the top paint company in Asia and one of the
world's major paint manufacturers. Nippon Paint
manufactures high-quality paints and coatings for the
automotive, industrial, and ornamental industries. Nippon
Paint has improved its products throughout the years
using cutting-edge paint technology, with an emphasis on
innovation and eco-friendliness. They are motivated by
the principle of enhancing life through innovation - to
continually deliver paint solutions that not only meet your
demands, but also safeguard the environment in which we
live. Nippon Paint has been in the Indian market for over
ten years and is quickly becoming a household name.
Aside from a variety of interior, exterior, and enamel
treatments, they have a number of unique products that
highlight their technological capabilities.

Berger paints - Berger Paints India is headquartered at

Kolkata, with 16 strategically located manufacturing units
across India (including the subsidiaries), 2 in Nepal, 1 each
in Poland and Russia and about 162 stock points. The
company also has an international presence in 4 countries
(Nepal, Bangladesh, Poland and Russia). With employee
strength of above 3450 as on 31st March, 2019 excluding
the subsidiaries and a countrywide distribution network of
25,000+ dealers, Berger is acclaimed as a game changer in
the sector with a vibrant portfolio of paints and tailor-
made customer services in every paint segment.
COMPETITION STRENGTH
AND WEAKNESES
Jenson & Nicolson India Limited

Strength:
Stable market performance
High revenue
A large array of products
Research and development
Skilled workforce

Weaknesses:
Unethical operations
Overdependence in some products
Uneven revenue distribution
Greater Gender discrimination

Kansai Nerolac Paints

Strength:
Market leader
Robust supply chain network
Good R&D and innovative products
Top customer in the list

Weaknesses:
Changing market demand
Business model of Kansai
Decreasing net cash flow
COMPETITION STRENGTH
AND WEAKNESES
Nippon Paint

Strength:
Wide range of products
Environment friend products
Professional logo
Excellent in innovation and quality

Weaknesses:
Small range of products
Large inventory

Berger paints

Strength:
Excellent brand perception and awareness
Alone supplier of protective coatings to
Nuclear Power Plants.
Provides high quality products
Well established operation and supply chain
network

Weaknesses:
High competition
High levels of lead found leading to
negative publicity
Limited liquidity options
PORTERS FIVE FORCE
ANALYSIS

THREAT OF NEW ENTRANTS

Big brands have a well-developed and trusted distribution system that

will be extremely tough to break for a new entrant.
The paint market in India is dominated by a few competitors, making it
difficult for new entrants to compete.
·Local players pose a significant challenge to a leading paint
manufacturing corporation with operations throughout India. With a
modest facility and an efficient distribution infrastructure, local players
may pose a significant challenge to these nationalized firms. Because the
local players do not care about quality and sell their items at low prices,
they attract the attention of the majority of middle-class People.
However, if a significant corporation has a large brand name, a good-
quality product, and certain marketing gimmicks, they may attract
customers even if their prices are expensive.

THREAT TO SUBSTITUTE

In this industry, the possibility of replacements being available is low.

However, the product variety is greater.
In rural areas, lime wash is commonly used as a paint alternative.
Wallpaper is one of the decorative wall options accessible today.
However, when all considerations are considered, the threat of
substitution is low.
PORTERS FIVE FORCE
ANALYSIS

BARGAINING POWER OF SUPPLIERS

The Indian paint industry is a raw material-intensive industry, with over

300 products going into the final product, the majority of which is
imported. Pigments, additives, solvents, binders, and other raw materials
are examples of raw materials. Titanium Dioxide, which accounts for 25%
of raw materials, is a crucial pigment used in the manufacture of paint and
is suffering a global supply shortfall. Petro-based items account for 50%
of the total, and their prices are highly volatile. So, the provider of this
material has considerable bargaining leverage. As a result, suppliers'
bargaining leverage is quite strong in the paint sector.

35%
BARGAINING POWER OF CUSTOMERS

The target audience of this industry are households and industrial users.
Buyers for housing requirements include building contractors that buy in
bulk and end users who paint their homes. With nearly identical items
produced by four different competitors in the same industry, Customers
are more price sensitive since they have more options, and decisions are
made based on quality, pricing, and differentiating aspects like as weather
protection and environmentally friendly paints. Customers can properly
compare prices as a result. However, the main Industrial paint suppliers
benefit from their expertise, which reduces their bargaining power.
PORTERS FIVE FORCE
ANALYSIS

COMPETITIVE RIVALRY

The organized sector, which consists of four businesses, controls the

majority of the paint industry (Asian Paints, Berger Paints, Kansai Nerolac
and Akzo Nobel). Yet, the current market growth rate can provide
adequate chance for all industry players to thrive. However, competition
will continue to rise as the market becomes saturated, but this will take
time; in the meantime, one can continue to serve client needs while
maintaining a healthy profit margin. In addition, the presence of an
unorganized sector might lead to rivalry. Furthermore, because it is a raw
material-intensive sector, the distribution network is critical. As a result,
the competitors face fierce competition
FINANCIAL
ANALYSIS

25%
 PRICE HISTORY

BSE: 500820 NSE: ASIANPAINT ISIN: INE021A01026

Summary:
Highest 2,873.45 Lowest 691.79 Average 1333.18
 PRICE HISTORY

Summary:
Highest - 3,180.00 Lowest - 691.79 Average - 1428.31
BALANCE
SHEET
ANALYSIS

25%
BALANCE SHEET
HORIZONTAL ANALYSIS
VERTICAL ANALYSIS
TREND ANALYSIS
 COMMENT

Horizontal Analysis: For Horizontal Analysis, each year is compared to the year
before it in order to perform a comparative study. For Asian paints the total
assets started decreasing from the year 2015-16 and totally fell to 3.15% by the
end of March 2020 which is not for the financial situation. But as the year 2020-
21 came to an end as surprise the total asset value went up to 26.09% increase.
As you can see the liabilities side also had the same effect as the assets side.
The equity attributable to owners of the company also fell down to 6.41% from
35.63% during the year 2019-20.

Vertical Analysis: For Vertical Analysis, We have taken the total assets and
liabilities of each year as the base, i.e. 100%, and calculated the percentage of
each item. In the asset side the majorly contributed item in all years would be
the Property, plant and equipment next comes its inventories and sometimes
its trade receivable or the investments made by the company. In the equity and
liability side, other equity part covers the major portion of the liability total.
following that is the trade payables component for all the past 5 years.

Trend Analysis: For trend analysis, 2015- 2016 is taken as the base year. The
absolute value is calculated against the base year, then the percentage is
calculated after that. Looking at the recent year ( 2020-21 ) values, each
component has increased which is good thing. we can see an increase in the
total assets of about 200.82%. In the case of liability, the company has made
sure to decrease it borrowings from the year 2015-16 to recently (54.83% to
19.40%) and its trade payable also have shown an increase.
 INCOME
STATEMENT
ANALYSIS

25%
INCOME STATEMENT
HORIZONTAL ANALYSIS
VERTICAL ANALYSIS
TREND ANALYSIS
 COMMENT

Horizontal Analysis: For Horizontal Analysis, each year is compared to the year
before it in order to perform a comparative study. The profit for the period
2020-21 has decreased from its previous year. This might be due to the case of
its expenses increasing by 5.03% from its previous year.

Vertical Analysis: We used the total revenue of each year as the base for
vertical analysis, i.e. 100 percent, and determined the proportion of each item.
We can see that the company's expenses account for a significant portion of
the profit for the period. Expenses accounted for more than 80% of total
income in 2018-19, lowering the profit to 11.30% from 12.31 percent. However,
over the years 2020-21, expenses are set to decline, implying that profit would
increase.

Trend Analysis: 2015-2016 is used as the base year for trend analysis. After
that, the percentage is derived by comparing the absolute value to the base
year. The earnings for the time has climbed by 180.23 % from 2015-16, as have
the expenses, yet the company has remained profitable throughout.
CASHFLOW
STATEMENT
ANALYSIS

25%
CASHFLOW STATEMENT
HORIZONTAL ANALYSIS
VERTICAL ANALYSIS
TREND ANALYSIS
 COMMENT

Horizontal Analysis: For Horizontal Analysis, each year is compared to the

year before it in order to perform a comparative study. The net cash
generated from operating increased by 39.95% in the year 2020-21. The cash
and cash equivalents as at march 31st for the year 2020-21 has increased by
268.36% from previous year.

Vertical Analysis: For Vertical analysis, It is calculated by taking Net Sales as

base. During the recent year 2020-21, it can be seen that the operating profit
before working capital changes contributes to the major part of the sales.

Trend Analysis: 2015-2016 is used as the base year for trend analysis. After
that, the percentage is derived by comparing the absolute value to the base
year. The cash and cash equivalents available at the end of the financial year
for the year 2020-21 has increased to 212.10% which is a gradual increase
compared to the previous years
 RATIO ANALYSIS

LIQUIDITY RATIO

CURRENT RATIO:

A current ratio is a liquidity ratio that indicates how well a company can pay
off short-term loans or obligations with current assets that are due within a
year. The current ratio of Asian paints has been greater than one for the
previous four years, and it has shown an increase in 2020-21, indicating that
the company has more current assets than is required to pay off its short-
term liabilities. This ratio also demonstrates the company's good financial
situation.

QUICK RATIO:

The quick ratio is another liquidity measure that measures a company's ability
to pay off current liabilities without selling inventory. In the last five years,
Asian Paints' quick ratio has shown no consistent increase or decline, but it
has increased in the year 2020-21 which is a positive sign for the company. It
will be able to meet its short-term obligations without having to liquidate its
inventory.
 RATIO ANALYSIS

CASH RATIO:

The cash ratio, also known as the liquidity ratio, indicates the company's ability
to pay off its current liabilities solely with cash and cash equivalents. Since it
only includes cash, the cash ratio is more conservative than the current and
quick ratios.A good cash ratio for a company would be greater than one, but
Asian Paints will be unable to meet its short-term obligations solely with cash
and cash equivalents, plus marketable securities, if any.

LEVERAGE RATIO

DEBT TO EQUITY RATIO:

The debt-to-equity ratio conveys a company's debt as a percentage of its

shareholders' equity. The debt to equity ratio (D/E) is said to indicate a
company's riskiness. It is said that the lower the debt to equity ratio (i.e. less
than one), the less risky the firm. This company's debt to equity ratios are all
less than one, indicating that it does not rely on debt to fund its operations.
 RATIO ANALYSIS
INTEREST COVERAGE RATIO:

The interest coverage ratio calculates how many times a company's earnings
can cover its interest payments.

TURNOVER RATIO

INVENTORY TURNOVER RATIO:

Inventory turnover is a measure of how quickly a company sells its inventory.

A low turnover rate indicates poor sales and, possibly, excess inventory, also
known as overstocking. A high ratio, on the other hand, indicates either high
sales or a lack of inventory. It is critical to compare the ratios of companies in
the same industry rather than companies in different industries. Depending
on the industry, the benchmark ratio varies greatly. Inventory can help
determine a company's liquidity depending on the industry in which it
operates.
 RATIO ANALYSIS

DEBTOR TURNOVER RATIO:

The debtors turnover ratio measures how efficiently a company collects its
receivables. A greater ratio shows that the company collects receivables
from its customers more frequently and efficiently, which is desirable. A high
ratio also implies that the company has a large number of good customers
who pay their bills on time. It is beneficial to compare a company's ratio to
that of its competitors or similar companies in the same industry. Rather than
viewing the number in isolation, looking at a company's ratio in relation to that
of similar firms will provide a more meaningful analysis of the company's
performance.

FIXED ASSET TURNOVER RATIO:

The Fixed Asset Turnover Ratio assesses the efficiency with which a
company generates revenue from its fixed assets. Asian Paints' fixed asset
turnover ratio gradually decreased over the last few years until 2019-20, but
then gone up significantly during the year 2020-21, indicating that the
company has been generating revenue through efficiently using its fixed
assets.
 RATIO ANALYSIS

TOTAL ASSET TURNOVER RATIO:

The total asset turnover ratio assesses a company's efficiency in generating

revenue by utilizing its total assets. Asian Paints' total asset turnover ratio has
been decreasing since 2015-16, indicating that revenue is not being
generated efficiently from the company's total assets.

PROFITABILITY RATIO

EBITDA MARGIN RATIO:

The EBITDA margin compares a company's earnings before interest, taxes,

depreciation, and amortization to its total revenue. Because EBITDA is
calculated before interest, taxes, depreciation, and amortization, the EBITDA
margin measures how much cash profit a company made in a given year. A
good EBITDA margin varies by industry, but a high EBITDA percentage
indicates that your company has fewer operating expenses and higher
earnings, indicating that you can cover your operating expenses while still
having a reasonable amount of revenue left over. For Asian paints the EBITDA
margin has been increasing so we can assume that its a good sign.
 RATIO ANALYSIS

NET PROFIT RATIO:

The net profit margin is defined as the ratio of profit after tax to net sales.
This ratio compares the amount of Net income generated by the company to
the total amount of sales generated. The higher the ratio, the more efficiently
the company converts its sales to actual profit. Asian paint's net profit margin
has fluctuated over the years, but it has recently increased, indicating that it
has been generating more profits from its revenue.

RETURN ON ASSET:

The Return on Assets (ROA) ratio is used to calculate how much profit a
company can make from its total assets. Asian paint's return on asset has
shown that it is not consistent, gradually increasing and decreasing. It has a
return of around 12.17 % in 2020-21, which appears to be a better return when
compared with the previous years.
 RATIO ANALYSIS

EARNINGS POWER:

The earnings power ratio is another type of ratio which measures how much
profit before interest and tax the company generates using its total assets.
So basically higher ratio indicates better profit generation. For Asian paints,
the ratio was higher during the year 2015-16, a sudden decrease in the year
2016-17 but later got back on its track, and now its is around 16.58%.

RETURN ON CAPITAL EMPLOYED:

Return on Capital Employed is a good indicator of a company's profitability.

This ratio calculates the percentage of income generated by capital,
indicating how effectively the company uses its capital for investment and
how much profit it can generate. A higher ratio is a good indicator, but Asian
Paint's return on capital employed has been gradually decreasing.
 RATIO ANALYSIS

EARNINGS PER SHARE(EPS):

Asian paint's EPS has been increasing yearly which is a good sign because
Investors will pay more for a company's shares if they believe the company's
profits are higher than its share price, so a higher EPS signals more value.

RETURN ON EQUITY:

ROE Return on equity (ROE) is a ratio that measures how well a company uses
money from its shareholders to generate profits and grow the business. Unlike
other return on investment ratios, ROE is a profitability measure calculated
from the standpoint of the investor rather than the company.Investors, on the
other hand, prefer to see a high return on equity ratio because it indicates that
the company is making good use of its investors' money.
 RATIO ANALYSIS

VALUATION RATIO

PRICE EARNING (P/E) RATIO:

P/E This is a ratio calculated by dividing a stock's current market price by its
most recent (annualized) earnings per share. We've used the TTM (trailing
twelve months) adjusted earnings per share in this example.
Asian Paints P/E Ratio: 96.52

YIELD:

Yield represents the rate of return actually earned by the equity

shareholders, which has increased recently during the year 2020-21.

RETURN ON NET WORTH:

Return on Net Worth measures the return the company has earned from it
capital.
 RATIO ANALYSIS

DIVIDEND PAYOUT RATIO:

Dividend pay-out ratio indicates the amount of earnings is distributed as

dividends. A high Dividend pay-out ratio means that the company paying out
more of its earnings and reinvesting less back into the business. A low
Dividend pay-out ratio means that more of the company's earnings are
reinvested back into the business for expansion.

BOOK VALUE PER SHARE:

The book value per share (BVPS) ratio compares a company's common
shareholder equity to the number of shares outstanding. Book value per
share is commonly used in relative valuation to compare a company's market
value per share. The BVPS can evaluate whether a stock is under or
overvalued, and it can assist investors in understanding how a stock acts.
 DU PONT ANALYSIS

The Dupont analysis is a financial ratio that is based on the return on equity
ratio which is used to assess a company's ability to grow its return on equity.
This analysis deconstructs the return on equity ratio to explain how
companies can boost shareholder returns.

The Dupont analysis looks at three main components of the ROE ratio.

Profit Margin
Total asset turnover
Financial leverage

This analysis also suggests that a company can increase its ROE by
maintaining a high profit margin, increasing asset turnover, or leveraging
assets more effectively based on these three performance measures.

A good ROE is around 15-20%, Asian paint's ROE is decreased from 23.58%
in 2015-16 to 21.43% in 2016-17 and decreased since then until the year 2019-
20. it has increased to around 19.40% recently.
INSTRINSIC
VALUATION

25%
 INTRINSIC VALUATION

WHAT IS INTRINSIC VALUE?

Intrinsic value is the projected or predicted value of a company, stock, currency,

or product based on fundamental study. It considers both tangible and
intangible aspects. Intrinsic value, often known as true worth, is not always equal
to market value. It is often referred to as the price a reasonable investor is
willing to pay for an investment based on its risk level.

METHODS USED TO CALCULATE INTRINSIC VALUE:

Warren Buffet Model

Mohnish Pabrai Model
Benjamin Graham Model
Discounted Profit Model

We have calculated the Intrinsic value of Asian Paints using Benjamin

Graham Model
 INTRINSIC VALUATION

STEP 1: Future growth prospect estimation

We are assuming Future Prospect of Asian paints as "Good". The benchmark

of the Maximum Growth rates is given below. if EPS Growth Rates is higher
than Benchmark Growth Rate in the then we can consider it further
calculation

STEP 2: EPS growth rate calculation

Fetch last 1o years EPS Data and Calculate EPS Growth of years
 INTRINSIC VALUATION

Then Calculate EPS Growth by

taking Average of EPS Growth, we
we get EPS Growth Rate (13.66%).
After get EPS TTM (sum of EPS's
of last four quarters), PE Zero
Growth Rate, Bank Repo Rate, AAA
Rated Government issued Bonds
and Book value per share.

Then Calculate Intrinsic Value using below formula

Intrinsic Value (IV) = (EPSttm * (PEzerogrowth + G)*RR)/Y
 INTRINSIC VALUATION

Apply Margin of Safety according to Market Capitalisation

Then Intrinsic value after applying Margin of Safety is Calculates as:-

= Rs 411*2.5/3

we get an intrinsic value Rs 342

Book Value of Share is Rs 126.05 so stock is currently trading at a 801 %

premium on its intrinsic value.
 RECOMMENDATION

The debt-to-equity ratio conveys a company's debt as a percentage of its

shareholders' equity. The debt to equity ratio (D/E) is said to indicate a
company's riskiness. It is said that the lower the debt to equity ratio (i.e. less
than one), the less risky the firm. This company's debt to equity ratios are all
less than one, indicating that it does not rely on debt to fund its operations.

Earnings Per Share is a widely used indicator for measuring corporate value
since it shows how much money a company makes for each share of its stock.
Asian paint's EPS has been increasing yearly which is a good sign because
Investors will pay more for a company's shares if they believe the company's
profits are higher than its share price, so a higher EPS signals more value.

The book value per share (BVPS) ratio compares a company's common
shareholder equity to the number of shares outstanding. Book value per
share is commonly used in relative valuation to compare a company's market
value per share. The BVPS can evaluate whether a stock is under or
overvalued, and it can assist investors in understanding how a stock acts.
Asian paints book value per share has been increasing year by year which is a
good sign.

Book Value of Share is Rs 126.05 so stock is currently trading at a 801 %

premium on its intrinsic value. so if the stock is already bought then it is
advised to sell it. Asian paints will be doing good for the next years
considering the EPS and also its debt to equity ratio where it has no debt so
the investors will get its return on time and also with a premium.