Asian Paints BSE: 500820 | NSE: ASIANPAINT ISIN: INE021A01018 | Paints/Varnishes

Painters

Company Information
Indias largest paint company and Asias third largest paint company, with a turnover of Rs.77.06 billion Started by a group of 4 friends in Kheda, Gujarat in1942 Market Leader in Paints industry since 1968

CRISIL rating AAA/stable

 The Group operates as: Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka) SCIB Paints in Egypt Berger in South East Asia (Singapore), Middle East

(UAE, Bahrain and Oman), Caribbean (Jamaica,

Barbados, Trinidad & Tobago) Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu) Taubmans in South Pacific (Fiji and Samoa)

Significant Events
High Inflation, resulting in 5 times price increasing in one year aggregating 12% Five year CAGR of 22.2% in revenues & 32.9% in net profits Revenues from overseas operations was Rs. 975 crores PAT from overseas operations was Rs. 87.9 crores April10 new manufacturing unit opened at Rohtak with a capacity of 150,000 Kl.

Product Portfolio

Ownership Pattern

Index Comparison

Price Summary

P&L Snapshot
8000 7000 6000

Rs (in crore)

5000 4000 3000 2000 1000 0 Sales Turnover EBIT PAT

Mar '07Mar '08

Mar '09 Mar '10

Mar '11

Valuation Parameters
90 80 70 60 50 40 30 20 10 0 2006-07 2007-08 2008-09 2009-10 2010-11 13 28 17 17.5 39 39% 52% D/P Ratio (%) 51%

DPS (Rs)
54%

EPS (Rs)
78 81

46%

38
32 27

Profitability Ratios
90 80 70 60 49.68 57.32 49.35 ROCE (%) operating profit margin (%) 14.77 15.83 19.24 13.16 17.57

62.94
55.73

50 40 30 20 10 0
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

Management Efficiency Ratios

20 18 16 16.02 14.03 14.74 Inventory Turnover Ratio debtors turnover ratio assets turnover ratio 16.71 18.93

14
12 10 8 6 4 2

9.8 8.03 6.88 3.81 3.97 4.18 7.95 4.68

7.08
4.25

0
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

Financial Stability Ratios

3 3 2.6 2.5 2.4 1.9 2.4 1.8 2.5

2 1.5
1.5 1 0.5 0 2006-07

1.8

0.7 0.16
0.13 2007-08 0.08 2008-09 0.05 0.04

2009-2010 2020-2011 Debt/Equity(%)

Current Ratio(x)

Quick Ratio(x)

Profitability Ratios
18
18 16 15 15 14 12 10 9 8 12 16

14
12 10

8
6 4

2
0 2006-07 2007-08 2008-09 2009-10 2010-11 Gross Profit margin(%) Net Profit margin(%)

Performance Ratios
4.4 80 70 60 50 40 30 20 10 0 2006-07 2007-08 ROA(%) 2008-09 ROE(%) 2009-10 ROCE(%) 2010-11 Asset Turnover 34 4.1 53 40 40 33 61 4.1 58 4 42 44 62 80

51
45 36

55

3.8

Valuation Parameters
50 45

48
44 45 42 32 24 23

46

41
37

43

41

40
35 30 25 20 15

21

21

18

10
5 0 2006-07 2007-08 2008-09 2009-10 2010-11 Inventory Days Receivable Days Payable Days

Indian Paint Industry

Market share

11% 17% 55% 17% Asian Paints Kansai Narolac Berger Paints ICI

Industry Comparison
31733

35000 30000 Rs.(in crores) 25000 20000 15000 10000 5000 0

4780

6322 3430

2140 2100 Sales Turnover

2040 997

650

Market Capital
Asian Paints

Total Assets
Berger Paints

Kansai Narolac

Industry Comparison (Contd.)

6836 7000 6000 Rs. (in crores) 5000

4000
3000 2000 1000 0

2378 1721 1161 291 176 775 205 120 Net Profit Berger Paints

Total Income Asian Paints

Operating Profit Kansai Narolac

Industry Comparison (Contd.)

82.46 90 80 70 60 50 40 30 20 10 0

42.97 35.8 26.9 22.5 12.94 5.22 4.9 4.34 24.39 24.46 32.99

P/E Asian Paints

P/BV

ROE (%)

EPS

Kansai Narolac

Berger Paints

SWOT Analysis

Strength: Brand name, Market leader, Distribution network Weakness: Low awareness about wood finishes Opportunities: Boom in construction sector, especially international life-style Threats: Non-wood materials are being used for furniture

References
www.asianpaints.com www.investopedia.com www.economictimes.com www.moneycontrol.com www.livemint.com

Thank You