Asian Paints Ltd logo

Asian Paints Ltd

ASIANPAINT NSE

Asian Paints is the largest home decor company in India. The 80+yr old company has major brands like Asian Paints, Apco, etc under its umbrella. The co. is into wall paints, wall coverings, waterproofing, texture painting, wall stickers, mechanized tools, adhesives, modular kitchens, sanitaryware, lightings, soft furnishings, and uPVC windows.

AI Verdict: HOLD Confidence: 5%

Asian Paints trades at a demanding PE of 60.1x with sluggish near-term sales growth of 5% TTM, but its consistent ROE of 22-25% and dominant market position justify a premium. The stock's 3-year CAGR of -6% suggests the market has already de-rated it, limiting further downside but offering limited upside until earnings growth accelerates.

Key Fundamentals

LargecapPaintsConsumer Goods
Market Cap
2.6L Cr
Volatility
Moderate
P/E Ratio
58.65
EBITDA
₹7,420 Cr
Return on Equity
28.61%
Debt to Equity
0.15
Book Value
₹222.81
EPS
₹52.96
52W High
₹2,985.7
52W Low
₹2,115

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 61.4%

Weaknesses

2
  • Stock is trading at 12.0 times its book value
  • The company has delivered a poor sales growth of 10.4% over past five years.

Growth Rate

Revenue Growth
5.31% ↗
Net Income Growth
18.47% ↗
Cash Flow Change
60.22% ↗
ROE
7.95% ↘
ROCE
1.79% ↘
EBITDA Margin (Avg.)
7.13% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Asian Paints trades at a demanding PE of 60.1x with sluggish near-term sales growth of 5% TTM, but its consistent ROE of 22-25% and dominant market position justify a premium. The stock's 3-year CAGR of -6% suggests the market has already de-rated it, limiting further downside but offering limited upside until earnings growth accelerates.

Bull Case 7
  • Consistent ROE averaging 24-25% over 5 and 10 years demonstrates superior capital efficiency and a durable competitive moat
  • Healthy dividend payout ratio of 61.4% provides income support with a 1% dividend yield at current levels
  • Compounded profit growth of 13% TTM shows earnings recovery is underway after a muted period
  • 10-year compounded sales CAGR of 10% reflects long-term demand tailwinds from urbanisation and premiumisation in India
  • Market cap of Rs 2,62,053 crore makes it the undisputed leader in decorative paints with pricing power and distribution strength
  • 46% of analysts recommend a Buy (16 out of 35 ratings), indicating moderate street confidence in medium-term upside
  • 10-year stock CAGR of 11% demonstrates long-term wealth creation capability despite recent underperformance
Bear Case 8
  • PE of 60.1x is extremely expensive relative to 13% TTM profit growth, implying a PEG ratio of ~4.6x which signals overvaluation
  • Price-to-book of 12.37x means investors pay a steep premium over net asset value, leaving little margin of safety
  • 3-year compounded sales CAGR of just 1% indicates near stagnation in topline momentum
  • 3-year stock CAGR of -6% and 5-year CAGR of -2% show sustained underperformance and investor fatigue
  • TTM sales growth of only 5% lags nominal GDP growth, suggesting market share pressure from Grasim and JSW Paints
  • 23% of analysts recommend Sell (8 out of 35), a notably high bear camp for a large-cap consumer staple
  • ROE has declined from 25% (5-year average) to 22% last year, indicating early signs of return compression
  • 5-year compounded profit CAGR of 7% underperforms the broader Nifty 50 earnings growth over the same period

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 2d ago
Headwinds 5
  • West Asia war risks flagged May 28

    MD Amit Syngle flagged West Asia conflict as near-term demand uncertainty; raw material cost impact ~20% but only 11% passed on via price hikes, leaving margins exposed.

  • Sell ratings from Goldman, Citi Jun 01

    Goldman Sachs (TP ₹2,575) and Citi (TP ₹2,500) maintain Sell ratings citing macro headwinds, competitive intensity, and margin compression risks. CLSA notes ~20% price hike needed vs only 10-11% taken.

  • Elevated competitive intensity persists Jun 14

    MD Syngle acknowledged in annual report that competitive intensity, commodity movements, and supply-chain risks remain dynamic in FY27; new entrants continue to pressure pricing.

  • Rich valuation at 53x PE Jun 01

    Stock trades at FY27 P/E of 53x with 8 out of 38 analysts maintaining Sell ratings; one bear sees stock slipping below ₹2,000. Stock down 2.5% YTD despite recent recovery.

  • Crude oil near $105/bbl May 24

    Brent crude trading near $105/bbl amid US-Iran tensions threatening Strait of Hormuz; crude derivatives account for 30-35% of paint industry raw material costs.

Positives 8
  • Q4 profit surges 69% YoY May 28

    Consolidated net profit jumped 69.3% YoY to ₹1,172 crore in Q4FY26; revenue rose 10.8% to ₹9,247 crore, beating Bloomberg estimates of ₹1,055 crore profit and ₹8,781 crore revenue.

  • 12-quarter high volume growth May 30

    Decorative paints delivered 12.4% volume growth in Q4FY26, a 12-quarter high with double-digit growth in each month across rural and urban markets.

  • EBITDA margin expands 214bps Jun 01

    EBITDA margin expanded to 19.3% from 17.2% YoY; gross margin hit multi-quarter high of 44.8%. Management maintains 18-20% EBITDA margin guidance for FY27.

  • 8-10% volume growth guided FY27 May 30

    Management guided for 8-10% volume growth in FY27 supported by El Niño painting days, extended festive season, and encouraging April-May demand trends.

  • ₹23 final dividend declared Jun 09

    Board recommended ₹23/share final dividend for FY26, taking total FY26 dividend to ₹27.50/share. Record date June 23, AGM on July 9, 2026.

  • Nomura raises target to ₹3,600 Jun 01

    Nomura raised TP to ₹3,600 (35% upside) with Buy rating; Nuvama raised to ₹3,470 (29% upside); JM Financial raised to ₹2,815. Nomura expects 13% earnings CAGR through FY29.

  • FY26 profit up 18.3% May 29

    Full-year standalone net profit rose 18.3% to ₹4,244 crore; consolidated profit up 18% to ₹4,325 crore. Operating cash flow surged 64% to ₹6,761 crore.

  • 6,000 retail touchpoints added Jun 14

    Company added nearly 6,000 retail touchpoints in FY26; new products contributed 16% of revenues. Premiumisation strategy driving value growth across waterproofing, wood finishes, and premium coatings.

Neutral 6
  • Promoters confirm no encumbrance Jun 20

    Asian Paints promoters declared no encumbrance on shares for FY26, confirming SEBI compliance.

  • Trading window closed for Q1FY27 Jun 17

    Trading window closed from June 19, 2026 until two days after Q1FY27 results declaration per insider trading code.

  • Smiti Holding pledge disclosure Jun 16

    Promoter entity Smiti Holding disclosed pledge and release of equity shares filed with BSE and NSE on June 15, 2026.

  • BRSR filed for FY26 Jun 12

    Asian Paints filed Business Responsibility and Sustainability Report for FY25-26 reporting zero fines and improved ESG metrics.

  • Milind Sarwate re-appointed director May 29

    Board approved re-appointment of Milind Sarwate as Independent Director for five years from October 2026, subject to shareholder approval.

  • Analyst meets scheduled Mumbai May 26

    Company scheduled analyst and investor meets in Mumbai on June 1, 2026; promoter briefing on June 26 for FY26 performance discussion.

TL;DR: Asian Paints delivered a strong Q4FY26 with 69% profit growth, 12-quarter high volumes, and meaningful margin expansion to 19.3%. The company guided 8-10% volume growth for FY27 with mid-teen sales growth from price hikes, drawing bullish calls from Nomura (₹3,600 TP) and Nuvama (₹3,470 TP). Key risks include incomplete pass-through of ~20% input cost inflation (only 11% hiked), West Asia conflict impact on crude-linked raw materials, and persistent competitive intensity. The trend is improving from FY26 lows but FY27 will test whether price hikes sustain demand momentum.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
8,787
9,182
8,479
9,103
8,731
8,970
8,028
8,549
8,359
8,939
8,531
8,867
9,247
Expenses
6,923
7,061
6,762
7,047
7,039
7,276
6,788
6,913
6,923
7,314
7,028
7,086
7,460
Operating Profit
1,865
2,121
1,716
2,056
1,691
1,694
1,240
1,637
1,436
1,625
1,503
1,781
1,787
OPM %
21%
23%
20%
23%
19%
19%
15%
19%
17%
18%
18%
20%
19%
Other Income
104
228
194
186
212
193
25
193
-60
229
237
69
197
Interest
39
46
51
54
54
55
63
56
53
44
44
48
59
Depreciation
220
198
209
220
226
228
242
256
301
301
305
313
310
PBT
1,710
2,105
1,651
1,968
1,624
1,604
959
1,518
1,022
1,509
1,392
1,489
1,614
Tax %
26%
25%
25%
25%
21%
26%
28%
26%
31%
26%
27%
28%
27%
Net Profit
1,258
1,575
1,232
1,475
1,275
1,187
694
1,128
701
1,117
1,018
1,074
1,185
EPS in Rs
12.87
16.16
12.57
15.09
13.1
12.2
7.24
11.58
7.22
11.47
10.36
11.05
12.22
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
13,615
14,271
15,062
16,825
19,240
20,211
21,713
29,101
34,489
35,495
33,906
35,584
Expenses
11,372
11,546
12,068
13,621
15,475
16,049
16,857
24,298
28,229
27,910
27,899
28,884
Operating Profit
2,243
2,725
2,994
3,204
3,765
4,162
4,856
4,804
6,260
7,585
6,006
6,700
OPM %
16%
19%
20%
19%
20%
21%
22%
17%
18%
21%
18%
19%
Other Income
142
213
338
336
274
350
332
296
431
821
350
728
Interest
42
49
37
41
110
102
92
95
144
205
227
195
Depreciation
266
276
335
360
622
780
791
816
858
853
1,026
1,229
PBT
2,077
2,614
2,960
3,138
3,306
3,629
4,304
4,188
5,689
7,348
5,103
6,003
Tax %
31%
32%
32%
33%
33%
24%
26%
26%
26%
24%
27%
27%
Net Profit
1,427
1,803
2,016
2,098
2,208
2,774
3,207
3,085
4,195
5,558
3,710
4,395
EPS in Rs
14.54
18.19
20.22
21.26
22.48
28.2
32.73
31.59
42.81
56.92
38.23
45.09
Div. Payout %
42%
41%
51%
41%
47%
43%
55%
61%
60%
58%
65%
61%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
96
96
96
96
96
96
96
96
96
96
96
96
Reserves
4,646
6,429
7,508
8,314
9,375
10,034
12,710
13,716
15,896
18,632
19,304
21,276
Borrowings
418
323
560
533
1,320
1,118
1,093
1,587
1,933
2,474
2,290
3,929
Other Liabilities
3,754
3,711
4,241
4,820
5,459
4,889
6,456
7,560
7,854
8,698
8,665
9,218
Total Liabilities
8,914
10,559
12,405
13,763
16,249
16,138
20,355
22,958
25,779
29,901
30,355
34,519
Fixed Assets
2,660
3,416
3,304
3,732
6,497
6,272
5,859
5,519
5,770
7,147
9,220
9,640
CWIP
196
107
258
1,405
210
140
183
426
1,020
2,698
1,254
1,849
Investments
1,588
2,712
2,652
2,141
2,569
2,019
4,737
3,248
4,262
4,588
4,725
7,062
Other Assets
4,471
4,324
6,192
6,485
6,974
7,707
9,577
13,765
14,728
15,468
15,156
15,968
Total Assets
8,914
10,559
12,405
13,763
16,249
16,138
20,355
22,958
25,779
29,901
30,355
34,519
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
1,188
2,243
1,527
2,113
2,470
3,038
3,683
986
4,193
6,104
4,424
7,088
Investing
-465
-866
-681
-1,556
-918
-518
-541
-317
-1,282
-2,548
-941
-1,328
Financing
-576
-849
-756
-1,379
-1,117
-2,871
-650
-1,808
-2,140
-2,982
-3,753
-2,377
Net Cash Flow
147
528
90
-822
434
-351
2,492
-1,138
771
573
-270
3,383
Free Cash Flow
750
1,441
860
705
1,336
2,661
3,422
475
2,774
3,613
2,604
5,604
CFO/OP
81
112
82
100
92
97
98
45
91
105
97
129
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
32
30
35
38
36
32
44
49
49
50
46
46
Inventory Days
123
108
138
117
119
127
134
142
121
122
142
118
Days Payable
84
84
101
95
90
80
119
96
71
79
81
79
Cash Conversion Cycle
70
54
72
60
65
79
59
94
99
93
107
84
Working Capital Days
11
15
22
22
16
34
37
57
54
49
52
38
ROCE %
42%
42%
38%
36%
33%
33%
34%
29%
34%
38%
26%
26%

Shareholding Pattern

As of Mar 2026
Promoters 52.63%
DIIs 21.81%
FIIs 12.11%
Public 11.29%
Others 2.16%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
52.79%
52.79%
52.79%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
17.65%
0.00%
15.89%
15.27%
15.28%
13.61%
12.22%
11.85%
11.64%
12.78%
12.11%
DIIs
6.37%
6.38%
5.94%
6.20%
6.61%
7.65%
7.97%
9.20%
10.01%
9.23%
10.05%
9.81%
11.66%
12.36%
13.16%
14.06%
15.58%
21.04%
21.58%
21.14%
21.81%
Government
0.08%
0.04%
0.04%
0.04%
0.04%
0.04%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
12.20%
11.99%
12.10%
12.39%
12.92%
13.04%
12.69%
12.82%
13.10%
12.66%
12.47%
12.31%
12.61%
12.51%
11.77%
12.46%
12.38%
12.20%
11.90%
11.23%
11.29%
Others
28.56%
28.80%
29.12%
28.74%
27.81%
26.64%
26.71%
25.35%
24.27%
25.49%
7.20%
25.26%
7.21%
7.24%
7.16%
7.25%
7.19%
2.28%
2.26%
2.22%
2.16%
No. of Shareholders
0
4,99,185
4,92,867
5,77,153
7,12,261
9,46,876
10,11,450
9,11,680
10,82,650
9,97,455
9,85,216
9,75,319
11,05,330
11,11,600
9,75,807
11,92,880
12,13,840
11,71,140
11,08,400
10,01,000
10,01,800

Documents

1
Concall - May 2017 May 2017
2
Concall - May 2018 May 2018
3
Concall - May 2019 May 2019
4
Concall - Oct 2020 Oct 2020
5
Concall - Jan 2021 Jan 2021

Frequently Asked Questions about Asian Paints Ltd

What does Asian Paints Ltd do?
Asian Paints is the largest home decor company in India. The 80+yr old company has major brands like Asian Paints, Apco, etc under its umbrella. The co. is into wall paints, wall coverings, waterproofing, texture painting, wall stickers, mechanized tools, adhesives, modular kitchens, sanitaryware...
Where is Asian Paints Ltd (ASIANPAINT) listed?
Asian Paints Ltd is listed on the Indian stock exchanges. It is listed on NSE: ASIANPAINT and BSE: 500820. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Asian Paints Ltd belong to?
Asian Paints Ltd operates in the Consumer Discretionary sector within the Consumer Durables industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Asian Paints Ltd?
Asian Paints Ltd has a market capitalisation of approximately ₹255779.68 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Asian Paints Ltd?
The Price-to-Earnings (PE) ratio of Asian Paints Ltd is 58.65. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Asian Paints Ltd?
Over the past 52 weeks, Asian Paints Ltd has traded between a low of ₹2,115 and a high of ₹2,985.7. This range helps investors understand the stock's price volatility and recent trading levels.
Does Asian Paints Ltd pay dividends?
Yes, Asian Paints Ltd has a dividend yield of 1.03%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Asian Paints Ltd?
Asian Paints Ltd has a Return on Equity (ROE) of 28.61%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Asian Paints Ltd on Tapetide?
On Tapetide, you can view Asian Paints Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Asian Paints is the largest home decor company in India. The 80+yr old company has major brands like Asian Paints, Apco, etc under its umbrella. The co. is into wall paints, wall coverings, waterproofing, texture painting, wall stickers, mechanized tools, adhesives, modular kitchens, sanitaryware, lightings, soft furnishings, and uPVC windows.

Website asianpaints.com
CEO Mr. Amit Syngle
Employees 11,111
Listed 1995-05-31
Face Value ₹ 1
Issued Size 95,91,97,790

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