Please refer to important disclosures at the end of this report
1
Asian Paints Limited is engaged in the business of manufacturing, selling, and
distribution of paints, coatings, products related to home decor, bath fittings and
providing of related services. Asian Paints has come a long way to become
India's largest and Asia's second largest paint company. APL is the industr
y
leader in the decorative paint segment with ~53% market share and a deale
r
network of over 40,000 across India. We believe consumer durable companies
will be key beneficiaries of the government's key reforms like implementation o
f
GST and pay hike. While the Seventh Pay Commission will boost the disposable
income of the 1.4crore govt employees, GST will bring down the effective tax rate
of the company. Also with healthy cash of around `420cr on the books could
lead to an increase in dividend payout and improvement in RoEs. The compan
y
reporting consistently healthy RoE of 30%+ in past few years and seems to
continue the same in coming years. Hence, Buy.
BUY
CMP `1,166
Stock Info
Sector
Beta 0.7
Bloomberg Code APNT IN
Shareholding Pattern (%)
Promoters 52.8
MF / Banks / Indian Fls 26.3
FIIs/NRIs/OCBs 0.0
Indian Public / Others 20.89
Abs. (%) 3m 1yr 3yr
Sensex 6.3 8.1 53.2
Asian Paints 14.2 44.6 175.5
Market Cap (
`
cr) 111,847
Paints/Varnish
52 Week High / Low 1,173/779
Avg. Daily Volume 91,931
Face Value (
`
)1
BSE Sensex 28,532
Nifty 8,810
Reuters Code ASPN.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
A
sian Paints
Others | Paints/Varnish
September 6, 2016
Asian Paints | Paints/Varnish
September 6, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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