A thread on Asian Paints
Let's try to understand Asian paints in detail with respect to various parameters.
1) Company background
2) Products and Services
3) Financials
(1/n)
Let's try to understand Asian paints in detail with respect to various parameters.
1) Company background
2) Products and Services
3) Financials
(1/n)
Company background
- Manufacturing operations in 15 countries including India, also considerable presence in South Asia & Middle East
- Servicing customers in over 60+ markets
- 75+ years of Innovation in paint Industry
- Dealer network of over 70,000+
(2/n)
- Manufacturing operations in 15 countries including India, also considerable presence in South Asia & Middle East
- Servicing customers in over 60+ markets
- 75+ years of Innovation in paint Industry
- Dealer network of over 70,000+
(2/n)
- Company has manufacturing plants in Haryana, Uttar Pradesh, Gujarat, Maharashtra, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu.
- 3rd largest in South Asia, 9th largest in the world.
- Research and Technology (R&T) facility has 200+ scientist.
(3/n)
- 3rd largest in South Asia, 9th largest in the world.
- Research and Technology (R&T) facility has 200+ scientist.
(3/n)
Decorative paints has 4 segments
- Interior/Exterior wall finishing, Wood finishing, Enamels
Industrial Paints
- 'Asian Paints PPG Pvt Ltd' is a 50:50 joint venture with PPG Industries, USA
- It has business in Protective/Powder/Floor coatings & Road markings
(4/n)
- Interior/Exterior wall finishing, Wood finishing, Enamels
Industrial Paints
- 'Asian Paints PPG Pvt Ltd' is a 50:50 joint venture with PPG Industries, USA
- It has business in Protective/Powder/Floor coatings & Road markings
(4/n)
Products
- Paints, chemical, Wall covering, waterproofing solutions, Kitchen/Bath fittings, Adhesives
Services
- Home painting, Interior design, Color consultancy
(5/n)
- Paints, chemical, Wall covering, waterproofing solutions, Kitchen/Bath fittings, Adhesives
Services
- Home painting, Interior design, Color consultancy
(5/n)
Kitchen Business
- Fragmented market with size >15,000 crores with many unorganized players
- Asian Paints acquired 51% stake in 'Sleek' in 2013-14 and the remaining 49% in 2017-2018
(6/n)
- Fragmented market with size >15,000 crores with many unorganized players
- Asian Paints acquired 51% stake in 'Sleek' in 2013-14 and the remaining 49% in 2017-2018
(6/n)
- 'Sleek by Asian Paints' is present in both segments i.e. Kitchen components, Full Modular Solutions
- 'Sleek' has more than 185 stores across the country offering modular kitchen design & installation services.
(7/n)
- 'Sleek' has more than 185 stores across the country offering modular kitchen design & installation services.
(7/n)
Bathroom Business
- Bathroom segment consists of chrome-plated fittings (CP), pipes and Tiles.
- Company operates in CP market.
- Market has large no of unorganized players.
(8/n)
- Bathroom segment consists of chrome-plated fittings (CP), pipes and Tiles.
- Company operates in CP market.
- Market has large no of unorganized players.
(8/n)
- 60% of the markets is serviced by organized setup.
- Asian Paints forayed in Bath business by acquiring front-end business of Ess-Ess in F.Y. 2014-15
(9/n)
- Asian Paints forayed in Bath business by acquiring front-end business of Ess-Ess in F.Y. 2014-15
(9/n)
Financials
1) Region wise Revenue
- Large part of the revenue is generated from Asia followed by Middle East, Africa and South Pacific
(10/n)
1) Region wise Revenue
- Large part of the revenue is generated from Asia followed by Middle East, Africa and South Pacific
(10/n)
2) Group wise
- Decorative segments constitutes a large chunk in revenue followed by International operations, Industrial segment and Home Improvement segment
- Decorative - 16,922.7, Industrial - 489.1, Home Improvement - 457.7, International Operations - 2341.8
(in Cr)
(11/n)
- Decorative segments constitutes a large chunk in revenue followed by International operations, Industrial segment and Home Improvement segment
- Decorative - 16,922.7, Industrial - 489.1, Home Improvement - 457.7, International Operations - 2341.8
(in Cr)
(11/n)
Standalone Review
- Revenue increased by 4.89% to Rs. 17194.1 crores in F.Y. 2019-20.
- 10 year CAGR stands at 11.73%
Consolidated Review
- Revenue increased by 5% to Rs. 20211.3 crores in F.Y. 2019-20
- 10 year CAGR stands at 11.28%
(12/n)
- Revenue increased by 4.89% to Rs. 17194.1 crores in F.Y. 2019-20.
- 10 year CAGR stands at 11.73%
Consolidated Review
- Revenue increased by 5% to Rs. 20211.3 crores in F.Y. 2019-20
- 10 year CAGR stands at 11.28%
(12/n)
Profit after Tax (PAT)
Standalone Review
- PAT increased by 24.47% to Rs. 2654 crores in F.Y. 2019-20
- 10 year CAGR stands at 14.65%
Consolidated Review
- PAT increased by 25.76% to Rs. 2705.2 crores in F.Y. 2019-20
- 10 year CAGR stands at 13.83%
(13/n)
Standalone Review
- PAT increased by 24.47% to Rs. 2654 crores in F.Y. 2019-20
- 10 year CAGR stands at 14.65%
Consolidated Review
- PAT increased by 25.76% to Rs. 2705.2 crores in F.Y. 2019-20
- 10 year CAGR stands at 13.83%
(13/n)
Debt to Equity Ratio
- Debt to Equity ratio of Asian paints stands at 0.04 in F.Y. 2019-20 as against 0.07 in the previous F.Y.
- In the year 2012, the Ratio was 0.11, after which it decreased then again increased, but currently it stands at 0.04 which is a good sign.
(14/n)
- Debt to Equity ratio of Asian paints stands at 0.04 in F.Y. 2019-20 as against 0.07 in the previous F.Y.
- In the year 2012, the Ratio was 0.11, after which it decreased then again increased, but currently it stands at 0.04 which is a good sign.
(14/n)
ROCE
- Return on Capital Employed (ROCE) is used for analyzing profitability, a ratio of Earning before Interest, Tax (EBIT) to Capital Employed
- ROCE is declining over the past few years, but still is greater than 30% and also more than its competitors in Paint sector.
(15/n)
- Return on Capital Employed (ROCE) is used for analyzing profitability, a ratio of Earning before Interest, Tax (EBIT) to Capital Employed
- ROCE is declining over the past few years, but still is greater than 30% and also more than its competitors in Paint sector.
(15/n)
ROE
- Return on Equity (ROE) indicates for how much profit the company is able to generate for each Re 1 of Shareholders equity.
- Higher the ROE, the better it is.
(16/n)
- Return on Equity (ROE) indicates for how much profit the company is able to generate for each Re 1 of Shareholders equity.
- Higher the ROE, the better it is.
(16/n)
- Over the past few years, the ROE of Asian Paints is decreasing, but still stands at above 20 which is a good sign.
- Also, comparing ROE of other companies in this sector, Asian paints tops the list.
(17/n)
- Also, comparing ROE of other companies in this sector, Asian paints tops the list.
(17/n)
Note : I am not recommending to buy any stock. This thread was just for Educational purpose. Please evaluate your risk profile and consult your financial advisor before making any investment. (18/n)
I hope this thread added value and helped you in understanding this company better.
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Thank you.
Also, check out the master thread on Personal finance which covers book review, types of investments, Sector analysis. New detailed threads on personal finance every Tuesday and Friday. If this helps you, please ‘re-tweet’ so it reaches maximum people.
https://twitter.com/ShreerangParad1/status/1362793660245417991
Also, do check out this Perfectly explained video on Asian Paints by @Manimattersind.
https://twitter.com/Manimattersind/status/1354663854945538052
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