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Please refer to important disclosures at the end of this report
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Asian Paints (APL) is India's leading paint manufacturer and marketer, with a
dominant share in the decorative segment(with market share of 45-50% in the
organised domestic paints segment while second-largest player has market share
of about 15%).Driven by its leadership position, the group's revenue registered
compound annual growth rate of 10% over the last five years. Asian Paints group
will maintain its leadership position, driven by its strong brand equity, extensive
distribution network, and wide product portfolio. The company started two new
capacities in Mysore and Vizag with 3lac kl each capacity for water-based
emulsion paints). Supply form these plants also aided the top-line growth
supported by surge in volumes. Total capacity stands at 11,30,000 kl with 75-
80% utilization. APL will be key beneficiary of rising urbanisation and
government’s housing push and falling crude oil prices. APL has been
maintaining a healthy dividend payout of average 40%. It has reported a
bottom-line of 12% CAGR over FY2015-19. Further, the company is virtually
debt free and also the cash flow has improved from `1,187cr in FY2015 to
`2,214r in FY2019. APL has maintained good return on equity (ROE) track
record for last 3 Years at 25.5%. Hence Buy.
BUY
CMP `1559
52 Week High / Low
1623/1118
Avg. Daily Volume
40,866
Paints
Market Cap (` cr)
1,49,539
1
BSE Sensex
36,691
Nifty
10,856
Face Value (`)
Reuters Code
ASPN.BO
APNT IN
0.9
Jaikishan Parmar
022 3935 7600 Ext: 6810
jaikishan.parmar@angelbroking.com
Asian Paints Ltd
Others | Paints
Aug 07, 2019
2
Asian Paints Ltd |Paints
2
Research Team Tel: 022 - 39357600 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Asian Paints
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)