For over 80 years, Asian Paints has been engaged in manufacturing paints. The business is an international paint manufacturer based in India that produces, sells, and distributes paints and goods for interior design, bathroom fixtures, and related services. Asian Paints Ltd. is the third-biggest paint producer in Asia, the largest in India, and one of the top 10 paint producers worldwide. The business serves customers in 65 countries and operates 27 paint manufacturing facilities in 22 nations.
About 98% of the company’s sales come from the paints sector and 2% from the home improvement sector. The Asian paint share price currently is Rs. 3,106.80, and its market capitalization stands at Rs. 2,98,089.96 crore. Let us look at some of the highlights of the company’s Q2FY23 results:
- Consolidated Sales rose from Rs. 7,036.51 crores to Rs. 8,430.60 crores, a 19.8% rise.
- Before sharing profits with associates, the group’s profit before depreciation, interest, tax, and other income (PBDIT) climbed by 35.7% to Rs. 1,227.70 crores from Rs. 904.45 crores.
- Profit before unusual items and taxes rose from Rs. 826.24 crores to Rs. 1,094.16 crores, a 32.4% rise.
- After deducting minority interest, net profit rose by 31.3%, from Rs. 595.96 crores to Rs. 782.71 crores.
In Q1FY23, the company touched 1,50,000 retail points. It also added 5,000 new retail locations and 10 new goods across all categories. Due to its strong growth in Tier 1 and Tier 2 cities, the company plans to increase the scope of its Premium and Luxury product categories. Following are the H1FY23 results:
- Consolidated Sales went from Rs. 12,571.38 crores to Rs. 17,009.48 crores, a rise of 35.3%.
- PBDIT for the group rose by 53.1% to Rs 2,783.65 crores from Rs. 1,818.01 crores.
- From Rs. 1,604.82 crores to Rs. 2,524.99 crores, profit before exceptional items and tax increased by 57.3%.
- After deducting minority interest, net profit rose by 54.5%, from Rs. 1,164.46 crores to Rs. 1,799.64 crores.
Some of the vital attributes that the company has are:
- High 12-month trailing earnings per share.
- The company has low debt.
- The company’s book value per share has been improving over the last two years.
Asian Paints’ strong supply chain infrastructure and solid balance sheet will safeguard the business’ margins in the future. In FY22–24E, there is a projection of a 15% CAGR in revenue and a 33% CAGR in PAT for Asian Paints. The company’s balance sheet condition is strong, with a cash surplus status and RoE and RoCE of 25% and 30%, respectively.
Therefore, investors can invest in Asian Paint share price and make it a part of their portfolio. However, it is important not to put money in a stock and diversify to lessen the volatility risks.
