Financial Modelling and

Valuation Report

Prepared By: Deepak Gupta

 ASIAN PAINTS LTD
Model Flow

Valuation Model Flow

Supplementary Financial Analysis

 ASIAN PAINTS LTD

Historical Financial Statement (Consolidated)

Historical Financial Statement - ASIAN PAINTS LTD

Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 LTM

# Income Statement
Sales ₹ 12,220.4 ₹ 13,615.3 ₹ 14,271.5 ₹ 15,062.0 ₹ 16,824.6 ₹ 19,240.1 ₹ 20,211.3 ₹ 21,712.8 ₹ 29,101.3 ₹ 34,488.6 ₹ 35,551.3
Sales Growth - 11.41% 4.82% 5.54% 11.70% 14.36% 5.05% 7.43% 34.03% 18.51% 3.08%

COGS ₹ 8,439.0 ₹ 9,298.8 ₹ 9,413.8 ₹ 9,732.7 ₹ 11,194.2 ₹ 12,905.8 ₹ 13,158.0 ₹ 14,035.1 ₹ 20,590.6 ₹ 23,766.7 ₹ 27,792.9
COGS % Sales 69.06% 68.30% 65.96% 64.62% 66.53% 67.08% 65.10% 64.64% 70.75% 68.91% 78.18%

Gross Profit ₹ 3,781.39 ₹ 4,316.49 ₹ 4,857.65 ₹ 5,329.33 ₹ 5,630.38 ₹ 6,334.32 ₹ 7,053.23 ₹ 7,677.72 ₹ 8,510.71 ₹ 10,721.89 ₹ 7,758.37
Gross Margins 30.94% 31.70% 34.04% 35.38% 33.47% 32.92% 34.90% 35.36% 29.25% 31.09% 21.82%

Selling & General Expenses ₹ 1,777.73 ₹ 2,073.60 ₹ 2,132.61 ₹ 2,335.57 ₹ 2,426.37 ₹ 2,569.38 ₹ 2,896.41 ₹ 2,822.12 ₹ 3,707.10 ₹ 4,462.05
S&G Exp % Sales 14.55% 15.23% 14.94% 15.51% 14.42% 13.35% 14.33% 13.00% 12.74% 12.94% 0.00%

EBITDA ₹ 2,003.66 ₹ 2,242.89 ₹ 2,725.04 ₹ 2,993.76 ₹ 3,204.01 ₹ 3,764.94 ₹ 4,156.82 ₹ 4,855.60 ₹ 4,803.61 ₹ 6,259.84 ₹ 8,367.92
y-o-y Growth 11.94% 21.50% 9.86% 7.02% 17.51% 10.41% 16.81% -1.07% 30.32% 33.68%
EBITDA Margins 16.40% 16.47% 19.09% 19.88% 19.04% 19.57% 20.57% 22.36% 16.51% 18.15% 23.54%

Depreciation ₹ 245.66 ₹ 265.92 ₹ 275.58 ₹ 334.79 ₹ 360.47 ₹ 622.14 ₹ 780.50 ₹ 791.27 ₹ 816.36 ₹ 858.02 ₹ 847.56
Depreciation%Sales 2.01% 1.95% 1.93% 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49% 2.38%

EBIT 1758 1976.97 2449.46 2658.97 2843.54 3142.8 3376.32 4064.33 3987.25 5401.82 7520.36
y-o-y Growth 12.46% 23.90% 8.55% 6.94% 10.52% 7.43% 20.38% -1.90% 35.48% 39.22%
EBIT Margins 14.39% 14.52% 17.16% 17.65% 16.90% 16.33% 16.71% 18.72% 13.70% 15.66% 21.15%

Other Income ₹ 124.26 ₹ 142.14 ₹ 213.39 ₹ 337.90 ₹ 336.41 ₹ 273.77 ₹ 355.05 ₹ 331.65 ₹ 295.88 ₹ 431.46 ₹ 0.00

Interest ₹ 47.99 ₹ 42.24 ₹ 49.00 ₹ 37.33 ₹ 41.47 ₹ 110.47 ₹ 102.33 ₹ 91.63 ₹ 95.41 ₹ 144.45 ₹ 189.98
Interest % Sales 0.39% 0.31% 0.34% 0.25% 0.25% 0.57% 0.51% 0.42% 0.33% 0.42% 0.53%

Earnings Before Tax ₹ 1,834.3 ₹ 2,076.9 ₹ 2,613.9 ₹ 2,959.5 ₹ 3,138.5 ₹ 3,306.1 ₹ 3,629.0 ₹ 4,304.4 ₹ 4,187.7 ₹ 5,688.8 ₹ 7,330.4
y-o-y Growth 13.23% 25.86% 13.23% 6.05% 5.34% 9.77% 18.61% -2.71% 35.85% 28.86%
EBT % Sales 15.01% 15.25% 18.32% 19.65% 18.65% 17.18% 17.96% 19.82% 14.39% 16.49% 20.62%

Tax ₹ 571.5 ₹ 649.5 ₹ 844.5 ₹ 943.3 ₹ 1,041.0 ₹ 1,098.1 ₹ 854.9 ₹ 1,097.6 ₹ 1,102.9 ₹ 1,493.5 ₹ 1,892.7
Effective Tax Rate 31.16% 31.27% 32.31% 31.87% 33.17% 33.21% 23.56% 25.50% 26.34% 26.25% 25.82%

Net Profit ₹ 1,262.8 ₹ 1,427.3 ₹ 1,769.4 ₹ 2,016.3 ₹ 2,097.5 ₹ 2,208.0 ₹ 2,774.2 ₹ 3,206.8 ₹ 3,084.8 ₹ 4,195.3 ₹ 5,437.7
y-o-y Growth 13.03% 23.96% 13.95% 4.03% 5.27% 25.64% 15.59% -3.80% 36.00% 29.61%
Net Margins 10.33% 10.48% 12.40% 13.39% 12.47% 11.48% 13.73% 14.77% 10.60% 12.16% 15.30%

No of Equity Shares 95.92 95.92 95.92 95.92 95.92 95.92 95.92 95.92 95.92 95.92 95.92

Earnings per Share ₹ 13.16 ₹ 14.88 ₹ 18.45 ₹ 21.02 ₹ 21.87 ₹ 23.02 ₹ 28.92 ₹ 33.43 ₹ 32.16 ₹ 43.74 ₹ 56.69
EPS Growth % 13.03% 23.96% 13.95% 4.03% 5.27% 25.64% 15.59% -3.80% 36.00% 29.61%

Dividend per Share ₹ 5.3 ₹ 6.1 ₹ 7.5 ₹ 10.3 ₹ 8.7 ₹ 10.5 ₹ 12.0 ₹ 17.8 ₹ 19.2 ₹ 25.7 -
Dividend payout ratio 40.26% 40.99% 40.66% 49.00% 39.79% 45.61% 41.49% 53.39% 59.55% 58.64% 0.00%

Retained Earnings 59.74% 59.01% 59.34% 51.00% 60.21% 54.39% 58.51% 46.61% 40.45% 41.36% 100.00%

# Balance Sheet
Equity Share Capital ₹ 95.9 ₹ 95.9 ₹ 95.9 ₹ 95.9 ₹ 95.9 ₹ 95.9 ₹ 95.9 ₹ 95.9 ₹ 95.9 ₹ 95.9
Reserves ₹ 3,943.3 ₹ 4,646.4 ₹ 6,428.9 ₹ 7,508.0 ₹ 8,314.3 ₹ 9,374.6 ₹ 10,034.2 ₹ 12,710.4 ₹ 13,715.6 ₹ 15,896.3
Borrowings ₹ 249.2 ₹ 418.2 ₹ 323.3 ₹ 560.3 ₹ 533.4 ₹ 1,319.6 ₹ 1,118.5 ₹ 1,093.1 ₹ 1,586.9 ₹ 1,932.6
Other Liabilities ₹ 3,787.0 ₹ 3,754.0 ₹ 3,710.9 ₹ 4,241.0 ₹ 4,819.8 ₹ 5,458.7 ₹ 4,889.3 ₹ 6,455.9 ₹ 7,560.0 ₹ 7,854.5
Total Liabilities ₹ 8,075.4 ₹ 8,914.5 ₹ 10,559.0 ₹ 12,405.2 ₹ 13,763.5 ₹ 16,248.8 ₹ 16,138.0 ₹ 20,355.3 ₹ 22,958.4 ₹ 25,779.3

Fixed Assets Net Block ₹ 2,561.6 ₹ 2,660.0 ₹ 3,416.4 ₹ 3,303.7 ₹ 3,732.2 ₹ 6,496.6 ₹ 6,272.3 ₹ 5,858.5 ₹ 5,519.1 ₹ 5,770.5
Capital Work in Progress ₹ 71.6 ₹ 196.0 ₹ 106.6 ₹ 257.5 ₹ 1,405.1 ₹ 209.7 ₹ 140.2 ₹ 183.0 ₹ 426.4 ₹ 1,019.6
Investments ₹ 1,423.6 ₹ 1,587.8 ₹ 2,712.1 ₹ 2,652.0 ₹ 2,140.7 ₹ 2,568.6 ₹ 2,018.9 ₹ 4,736.8 ₹ 3,247.5 ₹ 4,261.7
Other Assets ₹ 609.5 ₹ 825.7 ₹ 714.7 ₹ 1,317.2 ₹ 1,691.8 ₹ 1,472.0 ₹ 1,738.7 ₹ 2,565.5 ₹ 2,876.7 ₹ 3,036.2
Total Non Current Assets ₹ 4,666.2 ₹ 5,269.5 ₹ 6,949.8 ₹ 7,530.4 ₹ 8,969.9 ₹ 10,746.8 ₹ 10,170.1 ₹ 13,343.8 ₹ 12,069.7 ₹ 14,087.9

Receivables ₹ 1,110.3 ₹ 1,182.1 ₹ 1,186.8 ₹ 1,446.6 ₹ 1,730.6 ₹ 1,907.3 ₹ 1,795.2 ₹ 2,602.2 ₹ 3,871.4 ₹ 4,636.9
Inventory ₹ 2,069.9 ₹ 2,258.5 ₹ 1,998.2 ₹ 2,626.9 ₹ 2,658.3 ₹ 3,149.9 ₹ 3,389.8 ₹ 3,798.6 ₹ 6,153.0 ₹ 6,210.6
Cash & Bank ₹ 229.0 ₹ 204.4 ₹ 424.2 ₹ 801.2 ₹ 404.7 ₹ 444.9 ₹ 782.8 ₹ 610.8 ₹ 864.3 ₹ 843.8
Total Current Assets ₹ 3,409.2 ₹ 3,645.0 ₹ 3,609.3 ₹ 4,874.8 ₹ 4,793.6 ₹ 5,502.1 ₹ 5,967.9 ₹ 7,011.5 ₹ 10,888.8 ₹ 11,691.4

Total Assets ₹ 8,075.4 ₹ 8,914.5 ₹ 10,559.0 ₹ 12,405.2 ₹ 13,763.5 ₹ 16,248.8 ₹ 16,138.0 ₹ 20,355.3 ₹ 22,958.4 ₹ 25,779.3

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

# Cash Flow Statements

Cash from Operating Activities ₹ 1,402.0 ₹ 1,187.7 ₹ 2,243.0 ₹ 1,527.3 ₹ 2,113.4 ₹ 2,469.5 ₹ 3,038.2 ₹ 3,683.4 ₹ 986.5 ₹ 4,193.4

Cash from Investing Activities (₹ 586.0) (₹ 465.0) (₹ 866.2) (₹ 681.1) (₹ 1,556.1) (₹ 917.8) (₹ 517.9) (₹ 540.5) (₹ 316.8) (₹ 1,282.3)

Cash from Financing Activities (₹ 625.9) (₹ 576.1) (₹ 849.0) (₹ 756.4) (₹ 1,379.1) (₹ 1,117.5) (₹ 2,871.5) (₹ 650.4) (₹ 1,807.6) (₹ 2,140.1)

Net Cash Flow ₹ 190.1 ₹ 146.6 ₹ 527.8 ₹ 89.8 (₹ 821.8) ₹ 434.3 (₹ 351.2) ₹ 2,492.4 (₹ 1,137.9) ₹ 771.0
 ASIAN PAINTS LTD

Ratio Analysis

Ratio Analysis of - ASIAN PAINTS LTD

Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Means Mediam

Growth Rate

SalesGrowth 11.41% 4.82% 5.54% 11.70% 14.36% 5.05% 7.43% 34.03% 18.51% 12.54% 11.41%
EBITDA Growth 11.94% 21.50% 9.86% 7.02% 17.51% 10.41% 16.81% -1.07% 30.32% 13.81% 11.94%
EBIT Growth 13.23% 25.86% 13.23% 6.05% 5.34% 9.77% 18.61% -2.71% 35.85% 13.91% 13.23%
Net Profit Growth 13.03% 23.96% 13.95% 4.03% 5.27% 25.64% 15.59% -3.80% 36.00% 14.85% 13.95%
Dividend Growth 15.09% 22.95% 37.33% -15.53% 20.69% 14.29% 48.75% 7.28% 33.94% 20.53% 20.69%

Profitability

Gross Margin 30.94% 31.70% 34.04% 35.38% 33.47% 32.92% 34.90% 35.36% 29.25% 31.09% 33.12% 33.47%
EBITDA Margin 16.40% 16.47% 19.09% 19.88% 19.04% 19.57% 20.57% 22.36% 16.51% 18.15% 19.07% 19.09%
EBIT Margin 14.39% 14.52% 17.16% 17.65% 16.90% 16.33% 16.71% 18.72% 13.70% 15.66% 16.37% 16.71%
EBT Margin 15.01% 15.25% 18.32% 19.65% 18.65% 17.18% 17.96% 19.82% 14.39% 16.49% 17.52% 17.96%
Net Profit Margin 10.33% 10.48% 12.40% 13.39% 12.47% 11.48% 13.73% 14.77% 10.60% 12.16% 12.39% 12.40%

SalesExpenses%Sales 14.55% 15.23% 14.94% 15.51% 14.42% 13.35% 14.33% 13.00% 12.74% 12.94% 14.05% 14.33%
Depreciation%Sales 2.01% 1.95% 1.93% 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49% 2.70% 2.49%
OperatingIncome%Sales 14.39% 14.52% 17.16% 17.65% 16.90% 16.33% 16.71% 18.72% 13.70% 15.66% 16.37% 16.71%

Return

Return on Capital Employed 40.99% 38.31% 35.77% 32.57% 31.79% 29.13% 30.02% 29.24% 25.89% 30.14% 31.43% 30.14%
Retained Earnings% 59.74% 59.01% 59.34% 51.00% 60.21% 54.39% 58.51% 46.61% 40.45% 41.36% 52.32% 54.39%
Return on Equity% 31.26% 30.10% 27.12% 26.52% 24.94% 23.31% 27.39% 25.04% 22.33% 26.23% 25.89% 26.23%
Self Sustained Growth Rate 18.68% 17.76% 16.09% 13.52% 15.02% 12.68% 16.02% 11.67% 9.04% 10.85% 13.63% 13.52%
Interest Coverage Ratio 36.63x 46.80x 49.99x 71.23x 68.57x 28.45x 32.99x 44.36x 41.79x 37.40x 4684.18% 4435.59%

Turnover

Debtor Turnover Ratio 11.01x 11.52x 12.02x 10.41x 9.72x 10.09x 11.26x 8.34x 7.52x 7.44x 981.35% 1008.75%
Creditor Turnover Ratio 3.23x 3.63x 3.85x 3.55x 3.49x 3.52x 4.13x 3.36x 3.85x 4.39x 375.30% 362.69%
Inventory Turnover 5.90x 6.03x 7.14x 5.73x 6.33x 6.11x 5.96x 5.72x 4.73x 5.55x 592.25% 596.24%
Fixed Asset Turnover 4.77x 5.12x 4.18x 4.56x 4.51x 2.96x 3.22x 3.71x 5.27x 5.98x 438.92% 450.79%
Capital Turnover Ratio 3.03x 2.87x 2.19x 1.98x 2.00x 2.03x 2.00x 1.70x 2.11x 2.16x 211.39% 203.16%

Turnover in Days

In Days
Debtor Days 33 32 30 35 38 36 32 44 49 49 3829.13% 3618.35%
Payable Days 113 101 95 103 105 104 88 109 95 83 9791.18% 10063.70%
Inventory Days 62 61 51 64 58 60 61 64 77 66 6230.14% 6121.74%
Cash Conversion Cycle -18 -8 -13 -4 -9 -8 5 -1 31 32 268.09% -405.71%

Cash Flow

CFO/Sales 11.47% 8.72% 15.72% 10.14% 12.56% 12.84% 15.03% 16.96% 3.39% 12.16% 11.95% 12.56%
CFO/Total Assets 17.36% 13.32% 21.24% 12.31% 15.36% 15.20% 18.83% 18.10% 4.30% 16.27% 14.99% 15.36%
CFO/Total Debt 562.73% 284.02% 693.79% 272.57% 396.20% 187.14% 271.63% 336.96% 62.17% 216.98% 302.38% 272.57%
 ASIAN PAINTS LTD

Forcasting

ASIAN PAINTS LTD - Sales Forcasting ASIAN PAINTS LTD - EBITDA Forcasting
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth
1 2014A 12220.4 1 2014A 2003.7
2 2015A 13615.3 11.41% 2 2015A 2242.9 11.94%
3 2016A 14271.5 4.82% 3 2016A 2725.0 21.50%
4 2017A 15062.0 5.54% 4 2017A 2993.8 9.86%
5 2018A 16824.6 11.70% 5 2018A 3204.0 7.02%
6 2019A 19240.1 14.36% 6 2019A 3764.9 17.51%
7 2020A 20211.3 5.05% 7 2020A 4156.8 10.41%
8 2021A 21712.8 7.43% 8 2021A 4855.6 16.81%
9 2022A 29101.3 34.03% 9 2022A 4803.6 -1.07%
10 2023A 34488.6 18.51% 10 2023A 6259.8 30.32%
11 2024E 31804.3 -7.78% 11 2024E 5635.6 -9.97%
12 2025E 34009.7 6.93% 12 2025E 5964.4 5.83%
13 2026E 36215.0 6.48% 13 2026E 6256.6 4.90%
14 2027E 38420.4 6.09% 14 2027E 6543.1 4.58%

45000.0 0.4
7000.0 0.35
40000.0 0.35
0.3
0.3 6000.0
35000.0 0.25
0.25 5000.0
30000.0 0.2
0.2 0.15
25000.0 4000.0
0.15 0.1
20000.0 3000.0
0.1 0.05
15000.0 0
0.05 2000.0
10000.0 0 -0.05
1000.0
5000.0 -0.05 -0.1
0.0 -0.15
0.0 -0.1

EBITDA EBITDA Growth

Sales Sales Growth

ASIAN PAINTS LTD - Net profit Forcasting

Year Weight Year Net Profit Net Profits Growth
1 2014A 1262.8
2 2015A 1427.3 13.03%
3 2016A 1769.4 23.96%
4 2017A 2016.3 13.95%
5 2018A 2097.5 4.03%
6 2019A 2208.0 5.27%
7 2020A 2774.2 25.64%
8 2021A 3206.8 15.59%
9 2022A 3084.8 -3.80%
10 2023A 4195.3 36.00%
11 2024E 3701.5 -11.77%
12 2025E 3989.8 7.79%
13 2026E 4278.1 7.23%
14 2027E 4566.4 6.74%

5000.0 0.4
4500.0
0.3
4000.0
3500.0
0.2
3000.0
2500.0 0.1
2000.0
0
1500.0
1000.0
-0.1
500.0
0.0 -0.2

Net Profit Net Profits Growth

 ASIAN PAINTS LTD

Common Size Statement

. Common Size Income Statement - ASIAN PAINTS LTD

Perticular Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 51.88% 50.49% 46.03% 49.48% 48.31% 51.84% 49.39% 48.02% 58.84% 55.05%
Change in Inventory 0.74% 1.09% -1.40% 3.51% -0.84% 1.52% 1.18% 0.43% 4.55% 0.90%
Power and Fuel 1.09% 0.96% 0.80% 0.70% 0.66% 0.62% 0.48% 0.40% 0.40% 0.40%
Other Mfr. Exp 10.57% 11.05% 10.76% 11.04% 10.05% 9.68% 9.63% 9.53% 9.90% 8.46%
Employee Cost 6.25% 6.88% 6.97% 6.90% 6.67% 6.46% 6.78% 7.13% 6.17% 5.90%
Selling and admin 23.13% 24.62% 27.41% 28.97% 13.40% 12.30% 11.44% 10.34% 10.11% 10.15%
Other Expenses -8.58% -9.39% -12.47% -13.47% 1.02% 1.05% 2.89% 2.65% 2.63% 2.79%
Other Income 1.02% 1.04% 1.50% 2.24% 2.00% 1.42% 1.76% 1.53% 1.02% 1.25%
Depreciation 2.01% 1.95% 1.93% 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49%
Interest 0.39% 0.31% 0.34% 0.25% 0.25% 0.57% 0.51% 0.42% 0.33% 0.42%
Profit before tax 15.01% 15.25% 18.32% 19.65% 18.65% 17.18% 17.96% 19.82% 14.39% 16.49%
Tax 4.68% 4.77% 5.92% 6.26% 6.19% 5.71% 4.23% 5.06% 3.79% 4.33%
Net profit 9.97% 10.25% 12.23% 12.88% 12.12% 11.21% 13.38% 14.46% 10.41% 11.91%
Dividend Amount 4.16% 4.30% 5.04% 6.56% 4.96% 5.23% 5.70% 7.89% 6.31% 7.13%
EBITDA 17.05% 17.28% 20.42% 21.61% 20.69% 20.72% 21.98% 23.58% 17.34% 19.14%

Common Size Balance Sheet Statement - ASIAN PAINTS LTD

Perticular Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 1.19% 1.08% 0.91% 0.77% 0.70% 0.59% 0.59% 0.47% 0.42% 0.37%
Reserves 48.83% 52.12% 60.89% 60.52% 60.41% 57.69% 62.18% 62.44% 59.74% 61.66%
Borrowings 3.09% 4.69% 3.06% 4.52% 3.88% 8.12% 6.93% 5.37% 6.91% 7.50%
Other Liabilities 46.90% 42.11% 35.14% 34.19% 35.02% 33.59% 30.30% 31.72% 32.93% 30.47%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 31.72% 29.84% 32.35% 26.63% 27.12% 39.98% 38.87% 28.78% 24.04% 22.38%
Capital Work in Progress 0.89% 2.20% 1.01% 2.08% 10.21% 1.29% 0.87% 0.90% 1.86% 3.96%
Investments 17.63% 17.81% 25.69% 21.38% 15.55% 15.81% 12.51% 23.27% 14.15% 16.53%
Other Assets 7.55% 9.26% 6.77% 10.62% 12.29% 9.06% 10.77% 12.60% 12.53% 11.78%
Receivables 13.75% 13.26% 11.24% 11.66% 12.57% 11.74% 11.12% 12.78% 16.86% 17.99%
Inventory 25.63% 25.34% 18.92% 21.18% 19.31% 19.39% 21.01% 18.66% 26.80% 24.09%
Cash & Bank 2.84% 2.29% 4.02% 6.46% 2.94% 2.74% 4.85% 3.00% 3.76% 3.27%
 ASIAN PAINTS LTD
Beta Calculation
Regression Beta - 2 Years Weekly

Coromendal International - Weekly Returns NIFTY Returns Beta Drifting

Date Closing Price Weakly Return Closing Price Weakly Return

07-03-2022 2,886.7 16630.4 Levered Beta 0.87
14-03-2022 3,088.1 6.98% 17287.1 3.95% Raw Beta Weight 75.00%
21-03-2022 2,999.9 -2.86% 17153.0 -0.78%
28-03-2022 3,066.0 2.21% 17670.4 3.02% Market Beta 1.00
04-04-2022 3,156.7 2.96% 17784.3 0.64% Market Beta weight 25.00%
11-04-2022 3,033.1 -3.92% 17475.7 -1.74%
18-04-2022 3,115.5 2.72% 17171.9 -1.74% Adjusted Beta 0.90
25-04-2022 3,187.2 2.30% 17102.6 -0.40%
02-05-2022 2,969.7 -6.83% 16411.3 -4.04%
09-05-2022 3,016.7 1.58% 15782.2 -3.83% Beta 1 0.87
16-05-2022 3,061.9 1.50% 16266.2 3.07% Beta 2 0.87
23-05-2022 2,791.1 -8.85% 16352.5 0.53%
30-05-2022 2,842.3 1.84% 16584.3 1.42%
06-06-2022 2,666.9 -6.17% 16201.8 -2.31% Beta 3
13-06-2022 2,555.0 -4.20% 15293.5 -5.61%
20-06-2022 2,733.9 7.00% 15699.3 2.65% SUMMARY OUTPUT
27-06-2022 2,746.0 0.44% 15752.0 0.34%
04-07-2022 2,851.6 3.85% 16220.6 2.97% Regression Statistics
11-07-2022 2,949.0 3.42% 16049.2 -1.06% Multiple R 0.539382187
18-07-2022 3,037.4 3.00% 16719.4 4.18% R Square 0.290933144
25-07-2022 3,301.2 8.68% 17158.3 2.62% Adjusted R Square 0.283981508
01-08-2022 3,439.9 4.20% 17397.5 1.39% Standard Error 0.034036161
08-08-2022 3,394.3 -1.33% 17698.2 1.73% Observations 104
15-08-2022 3,448.5 1.60% 17758.4 0.34%
22-08-2022 3,291.1 -4.57% 17558.9 -1.12% ANOVA
29-08-2022 3,397.5 3.23% 17539.4 -0.11% df SS MS F Significance F
05-09-2022 3,408.2 0.31% 17833.3 1.68% Regression 1 0.04848276 0.04848276 41.85103341 3.46796E-09
12-09-2022 3,290.1 -3.47% 17530.8 -1.70% Residual 102 0.118162948 0.00115846
19-09-2022 3,362.1 2.19% 17327.3 -1.16% Total 103 0.166645708
26-09-2022 3,309.8 -1.56% 17094.3 -1.34%
03-10-2022 3,311.0 0.04% 17314.7 1.29% Coefficients Standard Error t Stat P-value Lower 95% Lower 95.0%
10-10-2022 3,154.4 -4.73% 17185.7 -0.74% Intercept -0.003821369 0.003387212 -1.128175587 0.261892428 -0.010539887 -0.010539887
17-10-2022 3,062.2 -2.92% 17576.3 2.27% X Variable 1 1.246846761 0.192734734 6.469237467 3.46796E-09 0.86455833 0.86455833
24-10-2022 3,023.6 -1.26% 17786.8 1.20%
31-10-2022 3,150.3 4.19% 18117.2 1.86%
07-11-2022 3,029.9 -3.82% 18349.7 1.28%
14-11-2022 3,069.7 1.31% 18307.7 -0.23%
21-11-2022 3,082.2 0.41% 18512.8 1.12%
28-11-2022 3,117.2 1.14% 18696.1 0.99%
05-12-2022 3,200.0 2.66% 18496.6 -1.07%
12-12-2022 3,030.4 -5.30% 18269.0 -1.23%
19-12-2022 3,032.4 0.07% 17806.8 -2.53%
26-12-2022 3,062.1 0.98% 18105.3 1.68%
02-01-2023 2,953.5 -3.55% 17859.4 -1.36%
09-01-2023 2,884.9 -2.33% 17956.6 0.54%
16-01-2023 2,764.5 -4.17% 18027.7 0.40%
23-01-2023 2,699.9 -2.34% 17604.3 -2.35%
30-01-2023 2,737.4 1.39% 17854.1 1.42%
06-02-2023 2,781.2 1.60% 17856.5 0.01%
13-02-2023 2,809.9 1.03% 17944.2 0.49%
20-02-2023 2,715.6 -3.36% 17465.8 -2.67%
27-02-2023 2,805.2 3.30% 17594.3 0.74%
06-03-2023 2,806.6 0.05% 17412.9 -1.03%
13-03-2023 2,838.8 1.15% 17100.1 -1.80%
20-03-2023 2,775.1 -2.24% 16945.1 -0.91%
27-03-2023 2,738.6 -1.32% 17359.8 2.45%
03-04-2023 2,786.4 1.75% 17599.2 1.38%
10-04-2023 2,786.3 0.00% 17828.0 1.30%
17-04-2023 2,858.0 2.57% 17624.1 -1.14%
24-04-2023 2,878.1 0.70% 18065.0 2.50%
01-05-2023 2,987.8 3.81% 18069.0 0.02%
08-05-2023 3,105.0 3.92% 18314.8 1.36%
15-05-2023 3,058.7 -1.49% 18203.4 -0.61%
22-05-2023 3,102.3 1.42% 18499.3 1.63%
29-05-2023 3,210.2 3.48% 18534.1 0.19%
05-06-2023 3,154.0 -1.75% 18563.4 0.16%
12-06-2023 3,311.1 4.98% 18826.0 1.41%
19-06-2023 3,292.0 -0.58% 18665.5 -0.85%
26-06-2023 3,356.2 1.95% 19189.1 2.80%
03-07-2023 3,337.9 -0.55% 19331.8 0.74%
10-07-2023 3,423.8 2.57% 19564.5 1.20%
17-07-2023 3,511.6 2.56% 19745.0 0.92%
24-07-2023 3,384.8 -3.61% 19646.1 -0.50%
31-07-2023 3,333.8 -1.51% 19517.0 -0.66%
07-08-2023 3,179.8 -4.62% 19428.3 -0.45%
14-08-2023 3,158.0 -0.68% 19310.2 -0.61%
21-08-2023 3,253.6 3.03% 19265.8 -0.23%
28-08-2023 3,253.9 0.01% 19435.3 0.88%
04-09-2023 3,232.4 -0.66% 19819.9 1.98%
11-09-2023 3,191.1 -1.28% 20192.3 1.88%
18-09-2023 3,269.1 2.45% 19674.3 -2.57%
25-09-2023 3,155.5 -3.47% 19638.3 -0.18%
 ASIAN PAINTS LTD

Market Return & Equity Risk Premium

20 Year Nifty Returns Calculation of Return on Market (RM)

Year Annual Return Average Return 15.61%

1
2000 -14.65% Dividend Yield 1.23%
2001 -16.18% Total Market Return 15.61%
2002 3.25%
2003 71.90% Risk Free Rate (RFR)
2004 10.68% ndia's 10-year Government Bond 7.05%
2005 36.34%
2006 39.83% Equity Risk Premium (ERP)
2007 54.77% RM 15.61%
2008 -51.79% RFR 7.05%
2009 75.76% ERP (RM-RFR) 8.56%
2010 17.95%
2011 -24.62%
2012 27.70%
2013 6.76%
2014 31.39%
2015 -4.06%
2016 3.01%
2017 28.65%
2018 3.15%
2019 12.02%
2020 14.90%
2021 24.12%
2022 4.32%
2023 19.42%
 ASIAN PAINTS LTD

WACC (Weighted Average Cost of Capital)

Weighted Average Cost of Capital

All fighure in INR

Peer Comps
Debt / Debt / Levered Unlevered
1
Name of the Comps Country Total Debt Total Equity Tax Rate Equity Capital Beta 2 Beta 3

Asian Paints India 2326.8 276018.9 25.00% 0.84% 0.84% 0.87 0.86
Berger Paints India 1154.2 67387.5 25.00% 1.71% 1.68% 0.77 0.76
Kansai Nerolac India 323.3 22533.7 25.00% 1.43% 1.41% 0.87 0.86
Akzo Nobel India 62.8 10969.8 25.00% 0.57% 0.57% 0.35 0.35
Indigo Paints India 13.7 6529.6 25.00% 0.21% 0.21% 0.55 0.55

Avarage 25.00% 0.95% 0.94% 0.68195 0.68

Meduan 25.00% 0.84% 0.84% 0.77 0.76

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 12.48% Risk Free Rate 7.05%

Tax Rate 25% Equity Risk Premium 8.56%
Post-Tax Cost of Debt 9.36% Levered Beta 4 0.77
Cost of Equity 13.60%

Capital Stracture Levered Beta

Comps Median Unlevered Bata 0.76
Current Target Target Debt/Equity 0.95%
Total Debt 1154.17 1.68% 0.94% Tax Rate 25%
Market Capitalisation 67387.46 98.32% 99.06% Lavered Bata 0.77
Total Capital 68541.63 100.00% 100%

Debt / Equity 1.71% 0.95% Weighted Avarage Cast of Capital

Cost of Equity 13.60%

1. Tax Rate considered as Marginal Tax Rate for the country Equity Weight 99.06%
2. Levered Beta is based on 5 year monthly data
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity) Cost of Debt 9.36%
3. Levered Beta = Unlevered Beta/(1+(1-Tax Rate) x Debt/Equity) Debt Weight 0.94%

WACC 13.56%
 ASIAN PAINTS LTD
Calculation of Growth Rate

Calculation of ROIC Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Current Assets
Inventories 3150 3390 3799 6153 6211
Trade receivables 1907 1795 2602 3871 4637
Short term loans 16 12 11 8 12
Other asset items 1456 1727 2555 2869 3024
Total Current Assets 6529 6924 8967 12901 13884

Current Liabilities
Trade Payables 2394 2137 3379 4164 3635
Advance from Customers 13 29 41 76 108
Other liability items 2690 2320 2613 2932 3657
Total Current Liabilities 5097 4486 6033 7172 7400

# Net Woeking Capital 1432 2438 2934 5729 6484

Non Current Assets

Land 605 640 644 644 799
Building 2402 2257 2249 2325 2617
Plant Machinery 4006 4208 4340 4531 4825
Equipments 221 241 243 253 270
Furniture n fittings 88 94 99 113 146
Railway sidings 0 0 0 0 0
Vehicles 47 43 38 32 30
Intangible Assets 512 505 476 345 330
Other fixed assets 261 293 302 294 289
Gross Block 8142 8281 8391 8537 9306
Accumulated Depreciation -1592 -2010 -2533 -3019 -3536
# Net Non Current Assets 6550 6271 5858 5518 5770

# Invested Capital 7982 8709 8792 11247 12254

EBIT 3142.8 3376.32 4064.33 3987.25 5401.82

# ROIC 39.4% 38.8% 46.2% 35.5% 44.1%

Calculation of Reinvestment of Rate Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Net capex 1,134 367 254 511 1,420

Change in Working Capital 1006 496 2795 755

EBIT 3142.8 3376.32 4064.33 3987.25 5401.82

Marginal Tax Rate 25% 25% 25% 25% 25%
EBIT (1-T) 2357.10 2532.24 3048.25 2990.44 4051.37
Reinvestment 1373 750 3306 2175
Reinvetsment Rate 54.22% 24.60% 110.55% 53.69%

4 Year Avg 60.77%

4 Year Median 53.95%

Calculation of Growth of Rate Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Reinvestment Rate 54.22% 24.60% 110.55% 53.69%

ROIC 38.8% 46.2% 35.5% 44.1%
Intrinsic Growth 21.02% 11.37% 39.19% 23.67%

4 Year Avg 23.81%

4 Year Median 22.34%
 ASIAN PAINTS LTD
Value Per Share

Calculation of PV of FCFF Mar-23A Mar-24F Mar-25F Mar-26F Mar-27F Mar-28F

EBIT 5,401.8 6,522.7 7,876.2 9,510.5 11,483.9 13,866.8

Tax Rate 0.3 0.3 0.3 0.3 0.3 0.3
EBIT (1-T) 4,051.4 4,892.0 5,907.1 7,132.8 8,612.9 10,400.1
Less: Reinvestment 47.14% 47.14% 47.14% 47.14% 47.14% 47.14%
Free Cash Flow to Firm (FCFF) 2,141.6 2,585.9 3,122.5 3,770.4 4,552.8 5,497.5
Mid Year Conversion 0.50 1.50 2.50 3.50 4.50
Discounting Factor 0.94 0.83 0.73 0.64 0.56
PV of FCFF 2,426.6 2,580.2 2,743.4 2,917.0 3,101.6

Expected Growth 20.75%

Terminal Growth 5.80%
WACC 13.56%

Calculation of Terminal Value Sensitivity Analysis

645.05 11.00% 13.56% 15.00% 17.00%
FCFF(n+1) 6638.2 3.00% 630.2 511.9 467.5 421.0
WACC 13.56% 4.00% 699.9 550.5 497.1 442.5
Terminal Growth Rate 5.80% 5.80% 892.9 645.3 566.5 490.8
Terminal Value 85506.69 6.00% 923.0 658.6 576.0 497.1
7.00% 1,118.2 737.3 630.2 532.6

Calculation of Equity value

62011.11 11.00% 13.56% 15.00% 17.00%
Pv of FCFF 13768.86 3.00% 60,584.3 49,235.1 44,979.1 40,520.5
PV Terminal Value 48242.25 4.00% 67,272.2 52,944.9 47,816.4 42,578.3
Enterprise Value 62011.11 5.80% 85,792.6 62,032.2 54,477.9 47,208.4
6.00% 88,673.5 63,309.0 55,382.6 47,816.4
Add: Cash 843.82 7.00% 1,07,399.7 70,860.8 60,584.3 51,221.2
Less: Debt 972
Value of Equity 61882.93
No. of Share 95.93
Equity Value Per Share 645.05

Current Share Price 2877.15

Discount/Premium 346.03%
 ASIAN PAINTS LTD
Comparable Company Valuation

Amounts in crores
Comparable Company Valueation
Market Data Market Data Valuevation
Share Share
Company Price Outstanding Equity Value Net Debt Enterprice value Revenue EBITDA Net Income EV/Revenue EV/EBITDA PE
Asian Paints 2,877 95.92 2,75,947 1,483 2,77,430 35,551 6,691 4,195.0 7.8x 41.5x 65.8x
Berger Paints 576 116.58 67,191 909 68,100 11,122 1,526 860.4 6.1x 44.6x 78.1x
Kansai Nerolac 279 80.84 22,542 196 22,739 7,766 844 468.5 2.9x 26.9x 48.1x
Akzo Nobel 2,398 4.55 10,910 -500 10,409 3,940 553 413.3 2.6x 18.8x 26.4x
Indigo Paints 1,368 4.76 6,511 -35 6,476 1,214 192 131.9 5.3x 33.8x 49.3x
Shalimar Paints 178 8.37 1,492 105 1,597 526 -8 -36.2 3.0x -211.8x -41.3x
Retina Paints 67 1.39 92 4 96 11 1 -1.0 8.7x 86.5x -92.4x
MCON Rasayan 133 0.63 84 11 95 35 3 1.1 2.7x 35.3x 73.6x

High 8.7x 86.5x 78.1x

75th Percentile 6.5x 42.3x 67.7x
Average 4.9x 9.5x 25.9x
Median 4.2x 34.5x 48.7x
25th Percentile 2.9x 24.9x 9.5x
Low 2.6x -211.8x -92.4x

Asian Paints Comparable Valueation EV/Revenue EV/EBITDA PE

Implied Enterprice Value 1,48,716 2,31,041 2,05,920
Net Debt 1,483 1,483 1,483
Implied Market Value 1,47,233 2,29,558 2,04,437
Share Outstanding 96 96 96
Implied Value Per share 1,535 2,393 2,131
Source: The Valuation School, Screener.in Overvalue Overvalue Overvalue
ASIAN PAINTS LTD

Football Field Analysis

Football Field Analysis - Valuation Summary (Rs) Football Field Analysis - Data
OpenLow Low OpenHigh High
4,000.00 Comps 336.5 336.5 458.6 458.6
₹ 3,568.00
3,500.00 DCF Bear 421 421 532.6 532.6
DCF Base 511.9 511.9 737.3 737.3
3,000.00
DCF Bull 630.2 630.2 1118.2 1118.2
2,500.00 52W H/L 2708.65 2708.65 3568 3568
₹ 2,708.65
2,000.00

1,500.00 ₹ 1,118.20
1,000.00 ₹ 737.30
₹ 458.60 ₹ 532.60
500.00
₹ 630.20
₹ 421.00 ₹ 511.90
0.00 ₹ 336.50
Comps DCF Bear DCF Base DCF Bull 52W H/L
 ASIAN PAINTS LTD
Value at Risk (VAR) - Historical Approach

Date Adj Close Return Sorted Return Calculation of Value at Risk - Asian Paints (Historical)
23-10-2009 148.9 1.24473876 0.096586631
15-01-2007 66.3 -0.301991319 0.092896166 Mean 0.11%
25-10-2007 95.0 -0.944160562 0.091229854 Std Deviation 1.66%
20-03-2020 1,701.4 -0.373309052 0.088527439 Min -14.03%
14-05-2021 2,715.0 142.6114395 0.085400098 Max 9.66%
16-05-2003 18.9 -0.59139546 0.083062878 CMP 2877.2
09-06-2006 46.3 -0.973554745 0.082636385
23-09-2019 1,749.5 16.94912613 0.078844931 Percentile Confidence VAR % Stock Price VAR (INR)
28-01-2008 97.5 -0.780666343 0.076603367 5.00% 95.00% -2.41% 2946.5 -69.3
19-09-2013 444.4 -0.725962222 0.075420795 1.00% 99.00% -4.27% 3000.0 -122.9
20-09-2019 1,621.7 15.80333109 0.075358952 0.50% 99.50% -5.19% 3026.4 -149.2
21-05-2009 96.5 4.310005695 0.075120941 10.00% 90.00% -1.69% 2925.6 -48.5
02-05-2003 18.2 -0.798317745 0.074728266
21-10-2008 90.1 -0.879632343 0.072366292
01-12-2014 748.7 31.56206342 0.070296818
18-05-2004 23.0 -0.985494919 0.069988714
07-04-2020 1,585.1 57.85359298 0.067657248
23-01-2004 26.9 -0.649532835 0.066739566
15-04-2009 76.9 -0.246880868 0.066402549
30-01-2008 102.0 0.732545686 0.065174098
06-02-2006 58.9 -0.923566164 0.063306457
08-01-2015 770.6 6.349634708 0.063042361
07-01-2008 104.8 -0.902393117 0.062669891
28-07-2016 1,074.2 3.623289581 0.06234666
28-07-2010 232.3 1.241787738 0.060614445
27-02-2008 103.6 -0.413121971 0.059684063
03-03-2010 176.6 -0.943155219 0.059493685
20-07-2021 3,106.6 5.493067162 0.059390716
21-10-2013 478.4 1.010846833 0.05935504
28-10-2010 237.9 1.854084381 0.058279415
13-05-2009 83.4 -0.932387214 0.058118705
11-05-2018 1,233.0 -0.425816236 0.056458994
27-10-2020 2,147.4 18.92671219 0.056406102
31-01-2008 107.8 -0.961928273 0.056059362
09-03-2022 2,830.5 31.64513286 0.055647371
23-01-2008 86.7 -0.876047451 0.055420979
28-11-2014 699.5 2.064334152 0.055264134
01-03-2011 228.3 -0.13147246 0.055025861
21-12-2010 262.8 -0.282416803 0.054760156
31-05-2012 366.3 12.81626577 0.053741292
07-12-2004 26.5 -0.684184333 0.053727049
22-10-2007 83.9 -0.012382719 0.053372506
29-10-2008 85.0 -0.890891801 0.052402436
07-07-2015 779.0 7.292808067 0.052389847
01-11-2007 93.9 0.356366064 0.052261763
30-01-2009 69.3 -0.960868933 0.051946856
22-04-2020 1,769.8 0.981349559 0.050405471
16-11-2016 893.2 36.10831861 0.050404269
06-11-2003 24.1 -0.984336895 0.050093513
 ASIAN PAINTS LTD
Value at Risk (VAR) - Monte Carlo Simmulation

Date Adj Close Return Sorted Return Replication Simulated Return Calculation of Value at Risk - Asian Paints (Simulation)
23-10-2009 148.9 1.24473876 0.096586631 1 0.003413481
15-01-2007 66.3 -0.301991319 0.092896166 2 0.024893285 Historical Approch
25-10-2007 95.0 -0.944160562 0.091229854 3 0.002376667 Mean 0.11%
20-03-2020 1,701.4 -0.373309052 0.088527439 4 -0.024263316 Std Deviation 1.66%
14-05-2021 2,715.0 142.6114395 0.085400098 5 0.013855893 Min -14.03%
16-05-2003 18.9 -0.59139546 0.083062878 6 -0.04993653 Max 9.66%
09-06-2006 46.3 -0.973554745 0.082636385 7 -0.01183654 CMP 2877.2
23-09-2019 1,749.5 16.94912613 0.078844931 8 0.02388983
28-01-2008 97.5 -0.780666343 0.076603367 9 0.024071235 Monte Carlo Simulation
19-09-2013 444.4 -0.725962222 0.075420795 10 -0.063072082 Mean 0.11%
20-09-2019 1,621.7 15.80333109 0.075358952 11 -0.002609133 Std Deviation 1.67%
21-05-2009 96.5 4.310005695 0.075120941 12 -0.007688054 Min -6.31%
02-05-2003 18.2 -0.798317745 0.074728266 13 0.013969108 Max 8.29%
21-10-2008 90.1 -0.879632343 0.072366292 14 -0.002415371 CMP 2329.6
01-12-2014 748.7 31.56206342 0.070296818 15 -0.017271753
18-05-2004 23.0 -0.985494919 0.069988714 16 -0.003455067 Percentile Confidence VAR % Stock Price VAR (INR)
07-04-2020 1,585.1 57.85359298 0.067657248 17 -0.011112313 5.00% 95.00% -2.64% 2953.1 -76.0
23-01-2004 26.9 -0.649532835 0.066739566 18 -0.007926529 1.00% 99.00% -3.71% 2984.0 -106.9
15-04-2009 76.9 -0.246880868 0.066402549 19 -0.004296836 0.50% 99.50% -4.06% 2993.9 -116.7
30-01-2008 102.0 0.732545686 0.065174098 20 0.005614414 10.00% 90.00% -2.02% 2935.2 -58.1
06-02-2006 58.9 -0.923566164 0.063306457 21 -0.004120959
08-01-2015 770.6 6.349634708 0.063042361 22 -0.002606662 Daily Return Distribustion
07-01-2008 104.8 -0.902393117 0.062669891 23 0.012408569
28-07-2016 1,074.2 3.623289581 0.06234666 24 -0.020887739
28-07-2010 232.3 1.241787738 0.060614445 25 -0.014592065
27-02-2008 103.6 -0.413121971 0.059684063 26 0.012034562
03-03-2010 176.6 -0.943155219 0.059493685 27 0.009598558
20-07-2021 3,106.6 5.493067162 0.059390716 28 0.022224939
21-10-2013 478.4 1.010846833 0.05935504 29 -0.033756784
28-10-2010 237.9 1.854084381 0.058279415 30 0.021666358
13-05-2009 83.4 -0.932387214 0.058118705 31 0.001081872
11-05-2018 1,233.0 -0.425816236 0.056458994 32 0.030697198
27-10-2020 2,147.4 18.92671219 0.056406102 33 0.002216342
31-01-2008 107.8 -0.961928273 0.056059362 34 0.020847684
09-03-2022 2,830.5 31.64513286 0.055647371 35 0.005680068
23-01-2008 86.7 -0.876047451 0.055420979 36 -0.002617248
28-11-2014 699.5 2.064334152 0.055264134 37 -0.019184514
01-03-2011 228.3 -0.13147246 0.055025861 38 0.012313416
21-12-2010 262.8 -0.282416803 0.054760156 39 0.016364241
31-05-2012 366.3 12.81626577 0.053741292 40 -0.005198938
07-12-2004 26.5 -0.684184333 0.053727049 41 0.012637362
22-10-2007 83.9 -0.012382719 0.053372506 42 0.013124761
29-10-2008 85.0 -0.890891801 0.052402436 43 -0.005046772
07-07-2015 779.0 7.292808067 0.052389847 44 0.020575643
01-11-2007 93.9 0.356366064 0.052261763 45 -0.008589237
30-01-2009 69.3 -0.960868933 0.051946856 46 0.015835884
22-04-2020 1,769.8 0.981349559 0.050405471 47 -0.048114076
16-11-2016 893.2 36.10831861 0.050404269 48 -0.005046268
06-11-2003 24.1 -0.984336895 0.050093513 49 -0.008908652
21-05-2020 1,536.8 10.62808998 0.049498504 50 0.006166149
07-10-2009 132.2 -0.680388547 0.049470172 51 0.006757727
10-09-2013 413.5 6.014744722 0.048694373 52 -0.017556464
08-03-2007 58.9 1.473992435 0.048544767 53 -0.006841794
18-08-2003 23.8 -0.990136093 0.048543838 54 0.015783012
16-03-2021 2,415.6 26.07393695 0.048237819 55 -0.00997171
14-10-2008 89.2 -0.773724086 0.048192789 56 0.02585221
06-09-2013 394.3 6.299406222 0.048076772 57 -0.000656024
02-02-2006 54.0 -0.86412369 0.047872575 58 -0.005953726
29-11-2012 397.6 21.19895383 0.047503763 59 -0.00961331
05-07-2002 17.9 -0.754490989 0.047459345 60 0.028247362
10-02-2009 72.9 3.251399293 0.046281745 61 0.009740724
ASIAN PAINTS LTD
(ASIAN PAINTS LTD | Bse Code: 500820)
INR 2877.15
52 Week (High - INR 3568 & Low - 2708.65)

About The Company

Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai, Maharashtra, India. The company is engaged
in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and
providing related services. Asian Paints is India's largest paints company by market share. It is the holding company of Berger
International.

Dupont Analysis
Financial Summary

Revenue (INR Crs.) Net Profit (INR Crs.) Average Total Assets (INR Crs.)
4,106
34,489
24,369
29,101 3,139 21,657
3,031
2,705 18,247
21,713 16,193
20,211

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Return on Equity (%) Return on Asset (%) Financial Leverage

27.60% 27.37% 27.56% 1.65x
16.71% 17.20% 16.85%
22.77% 1.64x
13.99% 1.63x

1.59x

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Recent Updates:

• Asian Paints gains as subsidiary signs agreements with GCPL to set up facility
• Asian Paints extends fall, down 7% in four days as competition flares up
• Grasim's paint foray turns brokerages bearish on Asian Paints as competition heats up; stock falls 4%
• Do SIPs in HDFC, Asian Paints and reap reward in next one year; up ante in metal/OMC space: Sanjiv Bhasin
• Revenue:Asian Paints Ltd’s revenue jumped 6.06% since last year same period to ₹9,289.55Cr in the Q3 2023-2024. On a
quarterly growth basis, Asian Paints Ltd has generated 7.11% jump in its revenue since last 3-months.
• Net Profits:Asian Paints Ltd’s net profit jumped 34.96% since last year same period to ₹1,447.72Cr in the Q3 2023-2024. On a
quarterly growth basis, Asian Paints Ltd has generated 20.1% jump in its net profits since last 3-months.
 Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,939.4 2,038.9 2,155.9 2,705.2 3,139.3 3,030.6 4,106.5
Average Shareholder Equity 7,064.4 8,007.1 8,940.4 9,800.4 11,468.2 13,308.9 14,901.9
Return on Equity (ROE) 27.45% 25.46% 24.11% 27.60% 27.37% 22.77% 27.56%

ROE - Dupont Equation

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,939.4 2,038.9 2,155.9 2,705.2 3,139.3 3,030.6 4,106.5
Revenue 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6
Net Profit Margin (A) 12.88% 12.12% 11.21% 13.38% 14.46% 10.41% 11.91%

Revenue 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6

Average Total Assets 11,482.1 13,084.3 15,006.2 16,193.4 18,246.7 21,656.9 24,368.9
Assets Turnover Ratio (B) 1.3x 1.3x 1.3x 1.2x 1.2x 1.3x 1.4x

Average Total Assets 11,482.1 13,084.3 15,006.2 16,193.4 18,246.7 21,656.9 24,368.9
Average Shareholder Equity 7,064.4 8,007.1 8,940.4 9,800.4 11,468.2 13,308.9 14,901.9
Equity Maltiplier (C) 1.63x 1.63x 1.68x 1.65x 1.59x 1.63x 1.64x

Return on Equity (A*B*C) 27.45% 25.46% 24.11% 27.60% 27.37% 22.77% 27.56%

Return on Assets (ROA)

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,939.4 2,038.9 2,155.9 2,705.2 3,139.3 3,030.6 4,106.5
Average Total Assets 11,482.1 13,084.3 15,006.2 16,193.4 18,246.7 21,656.9 24,368.9
Return on Assets (ROA) 16.89% 15.58% 14.37% 16.71% 17.20% 13.99% 16.85%

ROA - Dupont Equation

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,939.4 2,038.9 2,155.9 2,705.2 3,139.3 3,030.6 4,106.5
Revenue 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6
Net Profit Margin (A) 12.88% 12.12% 11.21% 13.38% 14.46% 10.41% 11.91%

Revenue 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6

Average Total Assets 11,482.1 13,084.3 15,006.2 16,193.4 18,246.7 21,656.9 24,368.9
Assets Turnover Ratio (B) 1.3x 1.3x 1.3x 1.2x 1.2x 1.3x 1.4x

Return on Assets (A*B) 16.89% 15.58% 14.37% 16.71% 17.20% 13.99% 16.85%

Dupont Summary:

• The net profit margin has seen variations, with a noticeable increase in Mar-21 (14.46%) compared to Mar-19 (11.21%), followed by a
decrease in Mar-22 (10.41%), and a slight recovery by Mar-23 (11.91%).
• Maintained at approximately 1.2x to 1.4x, suggesting a steady performance in asset utilization across the period.
• Ranges from 1.59x to 1.68x, indicating a relatively stable level of financial leverage with minor fluctuations.
• ROE demonstrates resilience and a capacity to rebound, with notable recoveries in Mar-20 (27.60%) and Mar-23 (27.56%) after declines,
showing the effectiveness of the company's strategies in generating shareholder value.
• The ROA shows a pattern of fluctuation but generally indicates a good ability of the company to turn its assets into profit, with a
noteworthy increase in Mar-20 (16.71%) and a rebound in Mar-23 (16.85%) after a dip in Mar-22 (13.99%).

Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any losses due
to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments
 ASIAN PAINTS LTD
(ASIAN PAINTS LTD | Bse Code: 500820)
INR 2877.15
52 Week (High - INR 3568 & Low - 2708.65)

Altman's Z Score Summary

Working Capital / Total Assets Retained Earnings / Total Assets EBIT / Total Assets
27.03% 26.66%
10.06% 20.92% 20.95%
19.97%
17.37%
7.34%
17.46% 6.73%
15.33%
5.44%

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Market Cap / Long term Liabilities Sales / Total Assets Altman's Z Score

222.65x 135.6
134%
125% 127%
186.17x 113.9
107%
142.91x 137.07x 88.0 84.7

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Altman's Z Score Analysis Calculation

Working Capital / Total Assets
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Working Capital 1,951.0 1,665.6 1,515.3 2,817.3 3,121.1 6,205.4 6,873.1
Total Assets 12,405.2 13,763.5 16,248.8 16,138.0 20,355.3 22,958.4 25,779.3
Working Capital / Total Assets (A) 15.73% 12.10% 9.33% 17.46% 15.33% 27.03% 26.66%

Retained Earnings / Total Assets

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Retained Earnings 1,028.3 1,263.0 1,200.9 1,623.2 1,494.6 1,247.9 1,735.0
Total Assets 12,405.2 13,763.5 16,248.8 16,138.0 20,355.3 22,958.4 25,779.3
Retained Earnings / Total Assets (B) 8.29% 9.18% 7.39% 10.06% 7.34% 5.44% 6.73%

EBIT / Total Assets

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
EBIT 2,659.0 2,843.5 3,142.8 3,376.3 4,064.3 3,987.3 5,401.8
Total Assets 12,405.2 13,763.5 16,248.8 16,138.0 20,355.3 22,958.4 25,779.3
EBIT / Total Assets (C) 21.43% 20.66% 19.34% 20.92% 19.97% 17.37% 20.95%
 Market Cap / Long term Liabilities
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Market Cap 1,02,969.9 1,07,468.5 1,43,179.5 1,59,850.3 2,43,386.8 2,95,428.1 2,64,896.9
Long term Liabilities 560.3 533.4 1,319.6 1,118.5 1,093.1 1,586.9 1,932.6
Market Cap / Long term Liabilities (D) 183.76x 201.47x 108.50x 142.91x 222.65x 186.17x 137.07x

Sales / Total Assets

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6
Total Assets 12,405.2 13,763.5 16,248.8 16,138.0 20,355.3 22,958.4 25,779.3
Sales / Total Assets (E) 121% 122% 118% 125% 107% 127% 134%

Altman's Z Score
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Final Score 112.5 123.1 67.1 88.0 135.6 113.9 84.7
Financial stability Strong Strong Strong Strong Strong Strong Strong

Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any losses
due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments