Asian Paints is one of the largest paint companies in India, with a market capitalization of over ₹2.5 lakh crore.
The company has a strong presence in the Indian market, with a market share of over 50% in the decorative paint segment.
Asian Paints has a diverse product portfolio, including paints, coatings, and home improvement products.
The company has a strong distribution network, with over 2500 dealers and 1.5 lakh retailers across the country.
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Financial Performance
Asian Paints has consistently shown a strong financial performance over the years. The company's sales have grown at a compound annual growth rate (CAGR) of 11% over the past 10 years, reaching a staggering 34,489 crores in March 2023.
The operating profit margin (OPM) has remained relatively stable, ranging from 16% to 22% over the years. In March 2023, the OPM stood at 19%. This indicates that the company has been able to maintain its profitability despite fluctuations in sales.
Here's a snapshot of the company's key financial performance indicators:
The company's net profit has also seen a significant growth, reaching 4,195 crores in March 2022. The earnings per share (EPS) have consistently increased, reaching 42.81 in March 2022.
Profit and Loss
The profit and loss statement is a crucial financial metric that shows the company's revenue and expenses over a specific period. It's like a report card for the company's financial performance.
Sales have been steadily increasing, with a compounded growth rate of 11% over the last 10 years. This is a great sign of the company's ability to grow its revenue over time.
Expenses have also been rising, but at a slower rate than sales. This means the company is able to maintain a healthy profit margin.
Here's a breakdown of the company's operating profit margin (OPM) over the years:
The company's operating profit margin has been relatively stable over the years, with some fluctuations. This suggests that the company has been able to maintain its efficiency and manage its costs effectively.
The net profit has also been increasing over the years, with a compounded growth rate of 16% over the last 10 years. This is a great sign of the company's ability to generate profits and create value for its shareholders.
Ratios
The Ratios section of a company's financial performance provides valuable insights into its efficiency and effectiveness in managing its resources.
Debtor Days, which measures the average number of days a company takes to collect its receivables, has been steadily declining over the years, from 34 days in Mar 2013 to 50 days in Mar 2024.
Inventory Days, on the other hand, has seen some fluctuations, ranging from 108 days in Mar 2016 to 142 days in Mar 2022.
The Cash Conversion Cycle, which takes into account both Debtor Days and Inventory Days, has been increasing over the years, from 60 days in Mar 2013 to 93 days in Mar 2024.
Here's a breakdown of the Cash Conversion Cycle for each year:
The Working Capital Days, which measures the average number of days a company takes to collect its receivables and pay its suppliers, has been increasing over the years, from 13 days in Mar 2013 to 62 days in Mar 2024.
The Return on Capital Employed (ROCE) percentage has been declining over the years, from 47% in Mar 2013 to 38% in Mar 2024.
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Shareholding and Ownership
As you dive into the world of Asian Paints stock quote, understanding the shareholding and ownership structure is crucial. The company's promoters hold a significant 52.63% stake, remaining steady since Mar 2022.
The number of shareholders has fluctuated over the years, with a notable increase from 2,02,914 in Mar 2017 to 9,46,876 in Mar 2022. As of Dec 2024, there are 11,92,876 shareholders.
Foreign Institutional Investors (FIIs) have held around 19.45% of the company's shares since Mar 2022, with a slight dip to 17.02% in Mar 2023. However, their stake has been increasing again, reaching 13.61% by Dec 2024.
Differential Institutional Investors (DIIs) have seen a steady rise in their stake, from 7.57% in Mar 2022 to 13.98% by Dec 2024. This indicates a growing interest in the company among domestic investors.
The government's stake in Asian Paints remains minimal, at around 0.04-0.06% since Mar 2022. The public's stake has also been relatively stable, ranging from 19.44% to 20.29% over the years.
Here's a brief summary of the shareholding pattern:
This summary provides a snapshot of the company's shareholding pattern, highlighting the steady stake of promoters and the fluctuating interest of FIIs and DIIs.
Frequently Asked Questions
Why is ASIANPAINT falling?
Asian Paints stock is falling due to market weakness, increasing crude prices, and competition from a new entrant in the paint sector. Its recent outperformance may also be contributing to a valuation correction.
Sources
- https://www.screener.in/company/ASIANPAINT/consolidated/
- https://www.livemint.com/market/market-stats/stocks-asian-paints-share-price-nse-bse-s0003079
- https://www.indiainfoline.com/company/asian-paints-ltd-share-price
- https://www.reliancesmartmoney.com/stocks/details/asian-paints-ltd/100820
- https://www.alphaspread.com/security/nse/asianpaint/analyst-estimates
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