Asian Paints Ltd. share price target

Background: Asian Paints is the largest paint company in India with a market share of 50% within organised players and ranks among the top 10 decorative coating companies globally. It operates in 17 countries with 24 manufacturing facilities. Further, through subsidiaries - Berger International Limited, Apco Coatings, SCIB Paints and Taubmans it is also present in the international markets. Domestic operations however account for a predominant share of its profits. Asian Paints has ~28,000 dealers...

Growth Trajectory Impressive but Valuations Limit Upside Asian Paints reported a mixed set of numbers for 4QFY17. While its consolidated revenues grew by 7.8% YoY to Rs39.5bn, EBITDA grew by a modest 2.1% YoY to Rs7.1bn. Consolidated net profit increased 10.1% YoY to Rs4.8bn on the back of higher other income. Volume growth in the decorative business stood at an impressive ~11% during the quarter. We expect Asian Paints to deliver 15.7% and 16.6% CAGR in revenue and earnings, respectively through FY17-19E. However, based on expected EPS of Rs28.6, the stock currently trades at expensive valuations of 40.8x FY19E earnings. Post our rating upgrade in 3QFY17, the stock has...

Revenue rose by 4.52% to Rs. 3888.73 Cr in Q3FY17 when compared to the previous quarter. Also, it increased by 2.76% when compared with Q3FY16

Background: Asian Paints is the largest paint company in India with a market share of 50% within organised players and ranks among the top 10 decorative coating companies globally. It operates in 17 countries with 24 manufacturing facilities. Further, through subsidiaries - Berger International Limited, Apco Coatings, SCIB Paints and Taubmans it is also present in the international markets. Domestic operations however account for a predominant share of its profits. Asian Paints has ~28,000 dealers...

Asian Paints (APL) posted a good set of numbers amid a challenging demand environment due to demonetisation. Sales growth at 3% YoY (vs. I-direct estimate: -13%) was driven by volume growth of ~4% YoY due to 1) launch of various trade schemes in November December 2016 2) change in product mix. The domestic business recorded flattish sales growth of 0.8% YoY while the overseas subsidiary recorded sales growth of ~13% YoY to | 719 crore. Further, demand of industrial paint (automotive and powder coating)...

Core Moats Remain Intact despite Near-term Overhang Asian Paints (APNT) has delivered flattish performance in 3QFY17 with its consolidated net sales and PAT growing 2.8% & 1.5% to Rs38.9bn & Rs4.9bn, respectively while EBITDA remained flat at Rs7.3bn. Owing to demonetisation the decorative business in India reported low single-digit growth in 3QFY17. Following modest performance in 3QFY17, we have downwardly revised our earnings estimates by 5% and expect...

With 1.2 billion people and the world's fourth-largest economy, India's recent growth and development has been one of the most significant achievements of our times. Over the six and half decades since independence, our motherland has brought about a landmark agricultural revolution that has transformed the nation from severe dependence on grain imports into a global agricultural powerhouse supplying food worldwide through its positive net exports. Life expectancy rates have more than doubled, literacy rates have quadrupled, with improving health conditions a sizable middle class has emerged. India is now home to globally recognized companies in pharmaceuticals,chemicals , steel and...

Background: Asian Paints is the largest paint company in India with a market share of 50% within organised players and ranks among the top 10 decorative coating companies globally. It operates in 17 countries with 24 manufacturing facilities. Further, through subsidiaries - Berger International Limited, Apco Coatings, SCIB Paints and Taubmans it is also present in the international markets. Domestic operations however account for a predominant share of its profits. Asian Paints has ~28,000 dealers...

Asian Paints (APL) posted sales growth of 10.3% YoY driven by volume growth of ~10% YoY led by both decorative and industrial paint demand strong demand from tier II and tier III cities. We believe realisation has declined 1.8% YoY mainly because 1) the company...