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