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Company Background

 Asian Paints Ltd. founded in 1942 is an Indian MNC headquartered
in Mumbai.
 It is India’s leading and Asia’s fourth largest paint company with a
turnover of Rs 158.5 billion.
 Along with manufacturing, selling and distribution of paints they
deal with products related to home decor, bath fittings and
providing of related services.
 They have their operations in 19 countries and have 26 paint
manufacturing facilities in the world, servicing consumers in over
65 countries.
 It has a market share of 73% of organized paint retail market in
India.

Smart City mission. marine parts etc. Decorative paints includes emulsions and distempers used mainly as wall paints. out of which organized retail is Rs 260 bn (around 65%)  The per capita consumption in India is 1. Rurban mission and focus on housing development will certainly increase the paint industry in India  Paint Industry is further classified into Industrial paints and decorative. Industrial paints are used for automobiles.5 kgs per annum as compared to global average of 15 kg per annum. which is going to increase significantly in future. Industry background  The Indian paint industry has been growing at a rate of around 15% since the last few years  The industry is estimated at around Rs 400 bn. Decorative sector account for about 75% of the whole paint industry . Government’s focus on make in India.

We have taken terminal growth rate at 5%. slightly less than long term economic growth. giving higher weightage to recent years. DCF Assumptions  Revenue Growth: We have taken the weighted average revenue growth of last four years. After 5 years we have assumed the revenue growth to be equal to the economy’s growth rate (around 7. .5%).  COGS and SGA: We have kept COGS and SGA same as that of the current year and constant thereafter.

the weighted average value per share comes out at Rs 1087. Optimistic.33 . Most likely and Pessimistic by changing values in Revenue growth rate (immediate and later). COGS and SGA ratios and cost of capital.  Scenario Analysis: We have done a scenario analysis by putting 3 different scenarios. Sensitivity and Scenario Analysis  We have done sensitivity analysis of enterprise value and share price by changing cost of capital and terminal growth rate. After taking probabilities of these events.