Asian Paints Limited Fundamental Analysis
Asian Paints Limited (ASIANPAINT.NS) shows moderate financial fundamentals with a PE ratio of 60.70, profit margin of 12.17%, and ROE of 21.52%. The company generates $355.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze ASIANPAINT.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentASIANPAINT.NS demonstrates superior asset utilization.
Valuation Score
WeakASIANPAINT.NS trades at a premium to fair value.
Growth Score
ModerateASIANPAINT.NS shows steady but slowing expansion.
Financial Health Score
ExcellentASIANPAINT.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateASIANPAINT.NS maintains healthy but balanced margins.
Key Financial Metrics
Is ASIANPAINT.NS Expensive or Cheap?
P/E Ratio
ASIANPAINT.NS trades at 60.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ASIANPAINT.NS's PEG of 3.38 indicates potential overvaluation.
Price to Book
The market values Asian Paints Limited at 12.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 37.11 times EBITDA. This signals the market has high growth expectations.
How Well Does ASIANPAINT.NS Make Money?
Net Profit Margin
For every $100 in sales, Asian Paints Limited keeps $12.17 as profit after all expenses.
Operating Margin
Core operations generate 20.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.52 in profit for every $100 of shareholder equity.
ROA
Asian Paints Limited generates $12.52 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 $27.75B, 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.NS converts 1.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How ASIANPAINT.NS Stacks Against Its Sector Peers
| Metric | ASIANPAINT.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.70 | 32.56 | Worse (Expensive) |
| ROE | 21.52% | 1178.00% | Weak |
| Net Margin | 12.17% | -145.00% (disorted) | Strong |
| Debt/Equity | 0.18 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 2.21 | 3.48 | Strong Liquidity |
| ROA | 12.52% | 624.00% | Weak |
ASIANPAINT.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, 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
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value