Asian Paints Limited Fundamental Analysis (BSE: ASIANPAINT.BO)
Asian Paints Limited Fundamental Analysis (BSE: ASIANPAINT.BO)
Asian Paints Limited (BSE: ASIANPAINT.BO) shows moderate financial fundamentals with a PE ratio of 53.11, profit margin of 12.83%, and ROE of 22.92%. The company generates $371.4B in annual revenue with weak year-over-year growth of -4.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ASIANPAINT.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakASIANPAINT.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateASIANPAINT.BO shows balanced valuation metrics.
Growth Score
WeakASIANPAINT.BO faces weak or negative growth trends.
Financial Health Score
ModerateASIANPAINT.BO shows balanced financial health with some risks.
Profitability Score
ModerateASIANPAINT.BO maintains healthy but balanced margins.
Key Financial Metrics
Is ASIANPAINT.BO Expensive or Cheap?
P/E Ratio
ASIANPAINT.BO trades at 53.11 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ASIANPAINT.BO's PEG of 1.63 indicates fair valuation.
Price to Book
The market values Asian Paints Limited at 11.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.81 times EBITDA. This signals the market has high growth expectations.
How Well Does ASIANPAINT.BO Make Money?
Net Profit Margin
For every $100 in sales, Asian Paints Limited keeps $12.83 as profit after all expenses.
Operating Margin
Core operations generate 16.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.92 in profit for every $100 of shareholder equity.
ROA
Asian Paints Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Asian Paints Limited generates limited operating cash flow of $34.83B, signaling weaker underlying cash strength.
Free Cash Flow
Asian Paints Limited produces free cash flow of $27.74B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $28.94 in free cash annually.
FCF Yield
ASIANPAINT.BO converts 1.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How ASIANPAINT.BO Stacks Against Its Sector Peers
| Metric | ASIANPAINT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.11 | 27.37 | Worse (Expensive) |
| ROE | 22.92% | 1190.00% | Weak |
| Net Margin | 12.83% | 204.00% | Weak |
| Debt/Equity | 0.00 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 3.14 | Weak Liquidity |
| ROA | 0.00% | 2758.00% | Weak |
ASIANPAINT.BO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Asian Paints Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.49%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
35.38%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
67.86%
Industry Style: Cyclical, Commodity, Value
High Growth