Asian Paints Ltd (NSE: ASIANPAINT): The Paints sector is a hot topic on the stock market. Leader companies may be shocked by the entry of Birla Group.
This is the reason why the global brokerage firm has given an aggressive call on Grasim’s shares but has changed the rating and target on Asian Paints.
This is the reason why the shares of Asian Paints have slipped by 4 percent as soon as the stock market opened. The share is trading around Rs 2890 on BSE.
Brokerage’s Trust Broken On Asian Paints
Shares of Asian Paints are in focus because Birla Group company Grasim has entered the paint sector. Brokerage firms are giving aggressive targets on the shares of Grasim, whereas the confidence of brokerages in Asian Paints has already reduced.
Brokerage has downgraded the shares of Asian Paints. Under this, the rating on the stock has been changed from underperform to sell.
The target on the share has also been reduced from Rs 3215 to Rs 2425. Apart from this, Goldman Sachs also reduced the target to Rs 2825 with a Neutral rating, which was earlier Rs 3300 per share.
Brokerage Strategy On Asian Paints
The brokerage firm believes that the market share of Asian Paints is likely to decline. Because retaining dealers and customers will be a big challenge for the company.
The increasing competition will also impact the company’s margins. CLSA says that this could be a de-rating event for Asian Paints.
Grasim Will Become A Big Rival
Grasim has entered the paint business and launched its brand Birla Opus, which will be a big competition for other paint companies including Asian Paints. Grasim has invested Rs 10,000 crore for new business, under which 6 paint plants have been set up.
Birla Opus will expand capacity by 40% of the industry size. There is also a target to make the paint business profitable in the next three years.
The company’s target is to earn Rs 10,000 crore from the paint business in the next 3 years.
About Asian Paints Ltd
Asian Paints Limited is an Indian-based company which is in manufactures and sells paints, coatings, and other products that are related to home decor, and other related services.
The Company operates under its Paints and Home Decor segment.
The Company manufactures varnishes, paints, and enamels as well as thinners. It also produces both organic and non-organic compounds; stainless steel sanitary ware, such as baths, sinks, washbasins, and similar products along with toiletries and cosmetics.
The Home Decor business offers modular kitchens and wardrobes bathroom fittings and sanitaryware. It also offers decorative lighting, unplasticized Polyvinyl Chloride doors and windows and wall coverings, furniture, and furnishing as well as carpets.
It provides a variety of options, including interior design services as well as safe painting services, solutions for waterproofing, wood solutions, color consultation online, and contractor finder service.
Fundamental Analysis of Asian Paints Ltd
| Market Cap | ₹ 2,75,002 Cr. |
| Current Price | ₹ 2,868 |
| 52-wk High | ₹ 3,568 |
| 52-wk Low | ₹ 2,706 |
| Stock P/E | 50.4 |
| Book Value | ₹ 173 |
| Dividend | 0.89 % |
| ROCE | 34.4 % |
| ROE | 27.7 % |
| Face Value | ₹ 1.00 |
| P/B Value | 16.7 |
| OPM | 21.8 % |
| EPS | ₹ 56.7 |
| Debt | ₹ 2,327 Cr. |
| Debt to Equity | 0.14 |
| Year | 1st Target | 2nd Target |
| 2024 | ₹2900 | ₹3100 |
| 2025 | ₹3212 | ₹3423 |
| 2026 | ₹3545 | ₹3764 |
| 2027 | ₹3876 | ₹4000 |
| 2028 | ₹4123 | ₹4235 |
| 2029 | ₹4456 | ₹4765 |
| 2030 | ₹5000 | ₹5342 |
| Promoters Holding | |
| Dec 2022 | 52.63% |
| Mar 2023 | 52.63% |
| June 2023 | 52.63% |
| Sept 2023 | 52.63% |
| Dec 2023 | 52.63% |
| FII Holding | |
| Dec 2022 | 18.11% |
| Mar 2023 | 17.02% |
| June 2023 | 17.48% |
| Sept 2023 | 17.65% |
| Dec 2023 | 17.32% |
| DII Holding | |
| Dec 2022 | 9.16% |
| Mar 2023 | 9.96% |
| June 2023 | 10.01% |
| Sept 2023 | 10.01% |
| Dec 2023 | 10.52% |
| Govt. Holding | |
| Dec 2022 | 0.04% |
| Mar 2023 | 0.05% |
| June 2023 | 0.05% |
| Sept 2023 | 0.05% |
| Dec 2023 | 0.06% |
| Public Holding | |
| Dec 2022 | 20.02% |
| Mar 2023 | 20.32% |
| June 2023 | 19.82% |
| Sept 2023 | 19.64% |
| Dec 2023 | 19.44% |
| Others Holding | |
| Dec 2022 | 0.04% |
| Mar 2023 | 0.04% |
| June 2023 | 0.04% |
| Sept 2023 | 0.04% |
| Dec 2023 | 0.04% |
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 19,240 Cr |
| 2020 | ₹ 20,211 Cr |
| 2021 | ₹ 21,713 Cr |
| 2022 | ₹ 29,101 Cr |
| 2023 | ₹ 35,551 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 2,208 Cr |
| 2020 | ₹ 2,774 Cr |
| 2021 | ₹ 3,207 Cr |
| 2022 | ₹ 3,085 Cr |
| 2023 | ₹ 5,541 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.07 |
| 2020 | 0.03 |
| 2021 | 0.03 |
| 2022 | 0.06 |
| 2023 | 0.06 |
Last 10 Years’ Profit Growth:
| 10 Years: | 14% |
| 5 Years: | 15% |
| 3 Years: | 15% |
| Current Year: | 43% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 27% |
| 5 Years: | 26% |
| 3 Years: | 26% |
| Last Year: | 28% |
Sales Growth Over 10 Years:
| 10 Years: | 13% |
| 5 Years: | 15% |
| 3 Years: | 20% |
| Current Year: | 6% |
Conclusion
This article is a complete guide about Asian Paints Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses.
Also, We have discussed the share’s prospects and growth potential in detail.
This information will help you in your further investment.
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