1
Please refer to important disclosures at the end of this report
1
1
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 15% 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. It is planning to invest `1200 in
FY18 (`1000 for two new capacities in Mysore and Vizag with 3lac kl each
capacity for water-based emulsion paints). Total capacity stands at 11,30,000 kl
with 75-80% utilization; lower utilization levels is because of Rohtak plant, which
will see levels improving slowly. APL will be key beneficiary of potential recovery
in GDP, rising urbanisation and government’s housing push. APL has been
maintaining a healthy dividend payout of 45.13%. It has reported a bottom-line
of 14% CAGR over FY2012-17. Further, the company is virtually debt free and
also the cash flow has improved from `710cr in FY2012 to `1527cr in FY2017.
APL has maintained good return on equity (ROE) track record for last 3 Years at
29.58%. Hence Buy.
BUY
CMP `1253
1.0
Reuters Code
ASPN.NS
APNT:IN
1
BSE Sensex
32,273
Nifty
10,085
Face Value (`)
Paints
Market Cap (` cr)
120,216
52 Week High / Low
1261.55/850.10
Avg. Daily Volume
50,743
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Asian Paints Ltd
Others | Paints
Sept 18, 2017
2
Asian Paints Ltd |Paints
June 5, 2017
2
Research Team Tel: 022 - 39357800 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)