• Historical Financial statements

• Ratio analysis
• Forecasting
• Common Size Statement
• WACC Model
• Return on Market
• Beta Calculation
• Return On Invested Capital (Intrinsic growth)
• DCF Model
• Comparable Company Valuations
• Football Field Analysis
• Value at Risk
• Dupont Analysis
 HISTORICAL FINANCIAL STATEMENT
Historical Financial Statement -Asian Paints Ltd
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 LTM
INR (Cr.)
Income Statement
Sales ₹ 12,220.37 ₹ 13,615.26 ₹ 14,271.49 ₹ 15,061.99 ₹ 16,824.55 ₹ 19,240.13 ₹ 20,211.25 ₹ 21,712.79 ₹ 29,101.28 ₹ 34,488.59 ₹ 34,488.59
Sales Growth - 11.41% 4.82% 5.54% 11.70% 14.36% 5.05% 7.43% 34.03% 18.51% 0.00%

COGS ₹ 8,438.98 ₹ 9,298.77 ₹ 9,413.84 ₹ 9,732.66 ₹ 11,194.17 ₹ 12,905.81 ₹ 13,158.02 ₹ 14,035.07 ₹ 20,590.57 ₹ 23,184.57 ₹ 28,228.75
COGS % Sales 69.06% 68.30% 65.96% 64.62% 66.53% 67.08% 65.10% 64.64% 70.75% 67.22% 81.85%

Gross Profit ₹ 3,781.39 ₹ 4,316.49 ₹ 4,857.65 ₹ 5,329.33 ₹ 5,630.38 ₹ 6,334.32 ₹ 7,053.23 ₹ 7,677.72 ₹ 8,510.71 ₹ 11,304.02 ₹ 6,259.84
Gross Margins 30.94% 31.70% 34.04% 35.38% 33.47% 32.92% 34.90% 35.36% 29.25% 32.78% 18.15%

Selling & General Expenses ₹ 1,777.73 ₹ 2,073.60 ₹ 2,132.61 ₹ 2,335.57 ₹ 2,426.37 ₹ 2,569.38 ₹ 2,896.41 ₹ 2,822.12 ₹ 3,707.10 ₹ 5,044.18 -
S&G Exp % Sales 14.55% 15.23% 14.94% 15.51% 14.42% 13.35% 14.33% 13.00% 12.74% 14.63% 0.00%

Other Income ₹ 124.26 ₹ 142.14 ₹ 213.39 ₹ 337.90 ₹ 336.41 ₹ 273.77 ₹ 355.05 ₹ 331.65 ₹ 295.88 ₹ 431.46 ₹ 431.46

EBITDA ₹ 1,879.40 ₹ 2,100.75 ₹ 2,511.65 ₹ 2,655.86 ₹ 2,867.60 ₹ 3,491.17 ₹ 3,801.77 ₹ 4,523.95 ₹ 4,507.73 ₹ 5,828.38 ₹ 5,828.38
EBITDA Margins 15.38% 15.43% 17.60% 17.63% 17.04% 18.15% 18.81% 20.84% 15.49% 16.90% 16.90%

Interest ₹ 47.99 ₹ 42.24 ₹ 49.00 ₹ 37.33 ₹ 41.47 ₹ 110.47 ₹ 102.33 ₹ 91.63 ₹ 95.41 ₹ 144.45 ₹ 144.45
Interest % Sale 0.39% 0.31% 0.34% 0.25% 0.25% 0.57% 0.51% 0.42% 0.33% 0.42% 0.42%

Depriciation ₹ 245.66 ₹ 265.92 ₹ 275.58 ₹ 334.79 ₹ 360.47 ₹ 622.14 ₹ 780.50 ₹ 791.27 ₹ 816.36 ₹ 858.02 ₹ 858.02
Depriciation % Sale 2.01% 1.95% 1.93% 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49% 2.49%

Earning Before Tax ₹ 1,585.75 ₹ 1,792.59 ₹ 2,187.07 ₹ 2,283.74 ₹ 2,465.66 ₹ 2,758.56 ₹ 2,918.94 ₹ 3,641.05 ₹ 3,595.96 ₹ 4,825.91 ₹ 4,825.91
EBT % Sale 12.98% 13.17% 15.32% 15.16% 14.66% 14.34% 14.44% 16.77% 12.36% 13.99% 13.99%

Tax ₹ 571.51 ₹ 649.54 ₹ 844.49 ₹ 943.29 ₹ 1,040.96 ₹ 1,098.06 ₹ 854.85 ₹ 1,097.60 ₹ 1,102.91 ₹ 1,493.50 ₹ 1,493.50
Effective Tax Rate 36.04% 36.23% 38.61% 41.30% 42.22% 39.81% 29.29% 30.15% 30.67% 30.95% 30.95%

Net Profit ₹ 1,014.24 ₹ 1,143.05 ₹ 1,342.58 ₹ 1,340.45 ₹ 1,424.70 ₹ 1,660.50 ₹ 2,064.09 ₹ 2,543.45 ₹ 2,493.05 ₹ 3,332.41 ₹ 3,332.41
Net Margins 8.30% 8.40% 9.41% 8.90% 8.47% 8.63% 10.21% 11.71% 8.57% 9.66% 9.66%

No of Equity Shares ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 -

Earning Per Share ₹ 10.57 ₹ 11.92 ₹ 14.00 ₹ 13.97 ₹ 14.85 ₹ 17.31 ₹ 21.52 ₹ 26.52 ₹ 25.99 ₹ 34.74 -
Net Margins 12.70% 17.46% -0.16% 6.29% 16.55% 24.31% 23.22% -1.98% 33.67% -100.00%

Divident per Share ₹ 5.30 ₹ 6.10 ₹ 7.50 ₹ 10.30 ₹ 8.70 ₹ 10.50 ₹ 12.00 ₹ 17.85 ₹ 19.15 ₹ 25.65 -
Net Margins 50.12% 51.19% 53.58% 73.71% 58.57% 60.65% 55.77% 67.32% 73.68% 73.83% 0.00%

Retained Earning 49.88% 48.81% 46.42% 26.29% 41.43% 39.35% 44.23% 32.68% 26.32% 26.17% 0.00%
 HISTORICAL FINANCIAL STATEMENT
Historical Financial Statement -Asian Paints Ltd
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 LTM
INR (Cr.)

Balance Sheet
Equity Share Capital ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92 ₹ 95.92
Reserves ₹ 3,943.30 ₹ 4,646.44 ₹ 6,428.90 ₹ 7,507.97 ₹ 8,314.31 ₹ 9,374.63 ₹ 10,034.24 ₹ 12,710.37 ₹ 13,715.64 ₹ 15,896.31
Borrowings ₹ 249.15 ₹ 418.17 ₹ 323.29 ₹ 560.34 ₹ 533.43 ₹ 1,319.60 ₹ 1,118.50 ₹ 1,093.12 ₹ 1,586.88 ₹ 1,932.62
Other Liabilities ₹ 3,787.03 ₹ 3,753.97 ₹ 3,710.92 ₹ 4,240.96 ₹ 4,819.82 ₹ 5,458.69 ₹ 4,889.31 ₹ 6,455.93 ₹ 7,559.99 ₹ 7,873.15
Total Liabiliites ₹ 8,075.40 ₹ 8,914.50 ₹ 10,559.03 ₹ 12,405.19 ₹ 13,763.48 ₹ 16,248.84 ₹ 16,137.97 ₹ 20,355.34 ₹ 22,958.43 ₹ 25,798.00

Fixed Assets Net Block ₹ 2,561.58 ₹ 2,660.04 ₹ 3,416.35 ₹ 3,303.74 ₹ 3,732.24 ₹ 6,496.56 ₹ 6,272.31 ₹ 5,858.52 ₹ 5,519.06 ₹ 5,770.46
Capital Work in Progress ₹ 71.60 ₹ 196.00 ₹ 106.59 ₹ 257.54 ₹ 1,405.11 ₹ 209.67 ₹ 140.24 ₹ 182.98 ₹ 426.43 ₹ 1,019.59
Investments ₹ 1,423.55 ₹ 1,587.79 ₹ 2,712.13 ₹ 2,651.99 ₹ 2,140.70 ₹ 2,568.58 ₹ 2,018.85 ₹ 4,736.80 ₹ 3,247.53 ₹ 4,261.71
Other Assets ₹ 609.51 ₹ 825.69 ₹ 714.68 ₹ 1,317.17 ₹ 1,691.84 ₹ 1,471.96 ₹ 1,738.71 ₹ 2,565.52 ₹ 2,876.66 ₹ 3,054.84
Total Non Current Assets ₹ 4,666.24 ₹ 5,269.52 ₹ 6,949.75 ₹ 7,530.44 ₹ 8,969.89 ₹ 10,746.77 ₹ 10,170.11 ₹ 13,343.82 ₹ 12,069.68 ₹ 14,106.60

Receivables ₹ 1,110.30 ₹ 1,182.07 ₹ 1,186.84 ₹ 1,446.60 ₹ 1,730.63 ₹ 1,907.33 ₹ 1,795.22 ₹ 2,602.17 ₹ 3,871.44 ₹ 4,636.94
Inventory ₹ 2,069.86 ₹ 2,258.52 ₹ 1,998.24 ₹ 2,626.94 ₹ 2,658.31 ₹ 3,149.86 ₹ 3,389.81 ₹ 3,798.60 ₹ 6,152.98 ₹ 6,210.64
Cash & Bank ₹ 229.00 ₹ 204.39 ₹ 424.20 ₹ 801.21 ₹ 404.65 ₹ 444.88 ₹ 782.83 ₹ 610.75 ₹ 864.33 ₹ 843.82
Total Current Assets ₹ 3,409.16 ₹ 3,644.98 ₹ 3,609.28 ₹ 4,874.75 ₹ 4,793.59 ₹ 5,502.07 ₹ 5,967.86 ₹ 7,011.52 ₹ 10,888.75 ₹ 11,691.40

Total Assets ₹ 8,075.40 ₹ 8,914.50 ₹ 10,559.03 ₹ 12,405.19 ₹ 13,763.48 ₹ 16,248.84 ₹ 16,137.97 ₹ 20,355.34 ₹ 22,958.43 ₹ 25,798.00

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
 HISTORICAL FINANCIAL STATEMENT
Historical Financial Statement -Asian Paints Ltd
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 LTM
INR (Cr.)

Cash Flow Statements

Operating Activities
Profit from operations ₹ 2,051.00 ₹ 2,271.00 ₹ 2,848.00 ₹ 3,056.00 ₹ 3,274.00 ₹ 3,861.00 ₹ 4,380.00 ₹ 4,970.00 ₹ 4,957.00 ₹ 6,460.00
Receivables (₹ 254.00) (₹ 155.00) (₹ 146.00) (₹ 475.00) (₹ 483.00) (₹ 205.00) ₹ 160.00 (₹ 849.00) (₹ 1,326.00) (₹ 834.00)
Inventory (₹ 231.00) (₹ 144.00) ₹ 202.00 (₹ 629.00) (₹ 39.00) (₹ 492.00) (₹ 251.00) (₹ 409.00) (₹ 2,354.00) (₹ 56.00)
Payables ₹ 317.00 (₹ 151.00) ₹ 142.00 ₹ 501.00 ₹ 442.00 ₹ 287.00 (₹ 241.00) ₹ 1,143.00 ₹ 644.00 (₹ 539.00)
Other WC items - - - - - - - (₹ 92.00) ₹ 242.00 ₹ 657.00
Direct taxes (₹ 480.00) (₹ 633.00) (₹ 802.00) (₹ 925.00) (₹ 1,081.00) (₹ 982.00) (₹ 1,011.00) (₹ 1,080.00) (₹ 1,176.00) (₹ 1,494.00)
Cash from Operating Activities ₹ 1,403.00 ₹ 1,188.00 ₹ 2,244.00 ₹ 1,528.00 ₹ 2,113.00 ₹ 2,469.00 ₹ 3,037.00 ₹ 3,683.00 ₹ 987.00 ₹ 4,194.00

Investing Activities
Fixed assets purchased (₹ 251.00) (₹ 454.00) (₹ 817.00) (₹ 684.00) (₹ 1,426.00) (₹ 1,151.00) (₹ 404.00) (₹ 282.00) (₹ 538.00) (₹ 1,446.00)
Fixed assets sold ₹ 16.00 ₹ 16.00 ₹ 15.00 ₹ 17.00 ₹ 17.00 ₹ 17.00 ₹ 37.00 ₹ 28.00 ₹ 40.00 ₹ 26.00
Investments purchased (₹ 872.00) (₹ 243.00) (₹ 282.00) (₹ 153.00) (₹ 320.00) (₹ 573.00) (₹ 25.00) (₹ 140.00) - (₹ 146.00)
Investments sold ₹ 463.00 ₹ 278.00 ₹ 205.00 ₹ 357.00 ₹ 362.00 ₹ 733.00 ₹ 134.00 ₹ 272.00 ₹ 207.00 ₹ 446.00
Interest received ₹ 14.00 ₹ 11.00 ₹ 15.00 ₹ 32.00 ₹ 39.00 ₹ 40.00 ₹ 65.00 ₹ 73.00 ₹ 77.00 ₹ 87.00
Dividends received ₹ 65.00 ₹ 71.00 ₹ 69.00 ₹ 74.00 ₹ 38.00 ₹ 40.00 ₹ 27.00 ₹ 8.00 ₹ 15.00 ₹ 56.00
Redemp n Canc of Shares - - - - ₹ 141.00 - - - - -
Acquisition of companies - - - - (₹ 525.00) - - - - (₹ 180.00)
Other investing items (₹ 21.00) (₹ 144.00) (₹ 70.00) (₹ 324.00) ₹ 118.00 (₹ 24.00) (₹ 353.00) (₹ 500.00) (₹ 118.00) (₹ 119.00)
Cash from Investing Activities (₹ 586.00) (₹ 465.00) (₹ 865.00) (₹ 681.00) (₹ 1,556.00) (₹ 918.00) (₹ 519.00) (₹ 541.00) (₹ 317.00) (₹ 1,276.00)

Financial Activities
Proceeds from borrowings ₹ 44.00 ₹ 239.00 ₹ 8.00 ₹ 271.00 ₹ 10.00 ₹ 243.00 ₹ 18.00 ₹ 155.00 ₹ 418.00 ₹ 254.00
Repayment of borrowings (₹ 81.00) (₹ 86.00) (₹ 119.00) (₹ 58.00) (₹ 54.00) (₹ 26.00) (₹ 279.00) (₹ 14.00) (₹ 8.00) (₹ 16.00)
Divident Paid (₹ 42.00) (₹ 35.00) (₹ 40.00) (₹ 36.00) (₹ 35.00) (₹ 106.00) (₹ 101.00) (₹ 89.00) (₹ 94.00) (₹ 142.00)
Financial liabilities (₹ 547.00) (₹ 695.00) (₹ 764.00) (₹ 947.00) (₹ 1,218.00) (₹ 1,049.00) (₹ 2,121.00) (₹ 499.00) (₹ 1,763.00) (₹ 1,936.00)
Application money refund - - - - - (₹ 180.00) (₹ 179.00) (₹ 203.00) (₹ 221.00) (₹ 511.00)
Other financing items - - ₹ 66.00 ₹ 13.00 (₹ 82.00) - (₹ 209.00) - (₹ 140.00) ₹ 211.00
Cash flow from Financial Activites (₹ 626.00) (₹ 577.00) (₹ 849.00) (₹ 757.00) (₹ 1,379.00) (₹ 1,118.00) (₹ 2,871.00) (₹ 650.00) (₹ 1,808.00) (₹ 2,140.00)

Net Cash Flow ₹ 191.00 ₹ 146.00 ₹ 530.00 ₹ 90.00 (₹ 822.00) ₹ 433.00 (₹ 353.00) ₹ 2,492.00 (₹ 1,138.00) ₹ 778.00
 RATIO ANALYSIS
Ratio Analysis -Asian Paints Ltd
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Trends Mean Median

SalesGrowth 11.41% 4.82% 5.54% 11.70% 14.36% 5.05% 7.43% 34.03% 18.51% 12.54% 11.41%
EBITDA Growth 11.78% 19.56% 5.74% 7.97% 21.75% 8.90% 19.00% -0.36% 29.30% 13.74% 11.78%
EBIT Growth 12.31% 21.87% 3.80% 8.02% 14.43% 5.31% 23.55% -1.11% 34.65% 13.65% 12.31%
Net Profit Growth 12.70% 17.46% -0.16% 6.29% 16.55% 24.31% 23.22% -1.98% 33.67% 14.67% 16.55%
Divident Growth 15.09% 22.95% 37.33% -15.53% 20.69% 14.29% 48.75% 7.28% 33.94% 20.53% 20.69%

Gross Margin 30.94% 31.70% 34.04% 35.38% 33.47% 32.92% 34.90% 35.36% 29.25% 32.78% 33.07% 17.32%
EBITDA Margin 15.38% 15.43% 17.60% 17.63% 17.04% 18.15% 18.81% 20.84% 15.49% 16.90% 17.33% 14.91%
EBIT Margin 13.37% 13.48% 15.67% 15.41% 14.90% 14.91% 14.95% 17.19% 12.68% 14.41% 14.70% 14.39%
EBT Margin 12.98% 13.17% 15.32% 15.16% 14.66% 14.34% 14.44% 16.77% 12.36% 13.99% 14.32% 8.76%
Net Profit Margin 8.30% 8.40% 9.41% 8.90% 8.47% 8.63% 10.21% 11.71% 8.57% 9.66% 9.23% 0.00%

SalesExpenses%Sales 14.55% 15.23% 14.94% 15.51% 14.42% 13.35% 14.33% 13.00% 12.74% 14.63% 14.27% 2.36%
Depriciation%Sale 2.01% 1.95% 1.93% 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49% 2.63% 14.91%
OperatingIncome%Sale 13.37% 13.48% 15.67% 15.41% 14.90% 14.91% 14.95% 17.19% 12.68% 14.41% 14.70% 0.00%

Return on Capital Employed 38.10% 35.56% 32.65% 28.43% 28.03% 26.59% 26.86% 26.85% 23.97% 27.73% 29.48% 40.39%
Retained Earning% 49.88% 48.81% 46.42% 26.29% 41.43% 39.35% 44.23% 32.68% 26.32% 26.17% 38.16% 20.12%
Return on Equity% 25.11% 24.10% 20.58% 17.63% 16.94% 17.53% 20.38% 19.86% 18.05% 20.84% 20.10% 6.96%
Self Sustained Growth Rate 12.52% 11.77% 9.55% 4.64% 7.02% 6.90% 9.01% 6.49% 4.75% 5.45% 7.81% 3971.30%
Interest Coverage Ratio 34.04x 43.44x 45.63x 62.18x 60.46x 25.97x 29.52x 40.74x 38.69x 34.41x 41.51x 0.00x

Debtor Turnover Ratio 11.01x 11.52x 12.02x 10.41x 9.72x 10.09x 11.26x 8.34x 7.52x 7.44x 9.93x 3.59x
Creditor Turnover Ratio 3.23x 3.63x 3.85x 3.55x 3.49x 3.52x 4.13x 3.36x 3.85x 4.38x 3.70x 5.93x
Inventory Turnover 5.90x 6.03x 7.14x 5.73x 6.33x 6.11x 5.96x 5.72x 4.73x 5.55x 5.92x 4.53x
Fixed Assets Turnover 4.77x 5.12x 4.18x 4.56x 4.51x 2.96x 3.22x 3.71x 5.27x 5.98x 4.43x 2.07x
Capital Turnover Ratio 3.03x 2.87x 2.19x 1.98x 2.00x 2.03x 2.00x 1.70x 2.11x 2.16x 2.21x 0.00x

Debtor Days 33 Days 32 Days 30 Days 35 Days 38 Days 36 Days 32 Days 44 Days 49 Days 49 Days 38 Days 102 Days
Payable Days 113 Days 101 Days 95 Days 103 Days 105 Days 104 Days 88 Days 109 Days 95 Days 83 Days 99 Days 62 Days
Inventory Days 62 Days 61 Days 51 Days 64 Days 58 Days 60 Days 61 Days 64 Days 77 Days 66 Days 62 Days -6 Days
Cash Conversion Cycle -18 Days -8 Days -13 Days -4 Days -9 Days -8 Days 5 Days -1 Days 31 Days 31 Days 1 Days 0 Days

CFO/Sales 11.48% 8.73% 15.72% 10.14% 12.56% 12.83% 15.03% 16.96% 3.39% 12.16% 11.90% 12.36%
CFO/Total Assets 17.37% 13.33% 21.25% 12.32% 15.35% 15.19% 18.82% 18.09% 4.30% 16.26% 15.23% 15.80%
CFO/Total Debt 563.11% 284.09% 694.11% 272.69% 396.12% 187.10% 271.52% 336.93% 62.20% 217.01% 328.49% 278.39%
 FORCASTING
Asian Paints Ltd - Sales Forcasting Asian Paints Ltd - EBITDA Asian Paints Ltd - Earning Per Share Forcasting
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth Year Weight Year EPS EPS Growth
1 2014A ₹ 12,220.37 1 2014A ₹ 1,879.40 1 2014A ₹ 10.57
2 2015A ₹ 13,615.26 11.41% 2 2015A ₹ 2,100.75 11.78% 2 2015A ₹ 11.92 12.70%
3 2016A ₹ 14,271.49 4.82% 3 2016A ₹ 2,511.65 19.56% 3 2016A ₹ 14.00 17.46%
4 2017A ₹ 15,061.99 5.54% 4 2017A ₹ 2,655.86 5.74% 4 2017A ₹ 13.97 -0.16%
5 2018A ₹ 16,824.55 11.70% 5 2018A ₹ 2,867.60 7.97% 5 2018A ₹ 14.85 6.29%
6 2019A ₹ 19,240.13 14.36% 6 2019A ₹ 3,491.17 21.75% 6 2019A ₹ 17.31 16.55%
7 2020A ₹ 20,211.25 5.05% 7 2020A ₹ 3,801.77 8.90% 7 2020A ₹ 21.52 24.31%
8 2021A ₹ 21,712.79 7.43% 8 2021A ₹ 4,523.95 19.00% 8 2021A ₹ 26.52 23.22%
9 2022A ₹ 29,101.28 34.03% 9 2022A ₹ 4,507.73 -0.36% 9 2022A ₹ 25.99 -1.98%
10 2023A ₹ 34,488.59 18.51% 10 2023A ₹ 5,828.38 29.30% 10 2023A ₹ 34.74 33.67%
11 2024E ₹ 31,804.30 -7.78% 11 2024E ₹ 5,633.91 -3.34% 11 2024E ₹ 32.60 -6.17%
12 2025E ₹ 34,668.28 9.00% 12 2025E ₹ 6,110.76 8.46% 12 2025E ₹ 35.70 9.51%
13 2026E ₹ 37,744.21 8.87% 13 2026E ₹ 6,587.08 7.79% 13 2026E ₹ 38.92 9.04%
14 2027E ₹ 40,821.99 8.15% 14 2027E ₹ 7,096.17 7.73% 14 2027E ₹ 42.41 8.96%
15 2028E ₹ 43,776.82 7.24% 15 2028E ₹ 7,575.65 6.76% 15 2028E ₹ 45.63 7.58%

Forecasting is done here using Linear Regression

Sales Forecast EPS Forecast

EBITDA Forecast ₹ 50.00
₹ 50,000.00
₹ 45,000.00 ₹ 8,000.00 ₹ 45.00
₹ 40,000.00 ₹ 7,000.00 ₹ 40.00
₹ 35,000.00 ₹ 6,000.00 ₹ 35.00
₹ 30,000.00 ₹ 30.00
₹ 5,000.00
₹ 25,000.00 ₹ 25.00
₹ 4,000.00
₹ 20,000.00 ₹ 20.00
₹ 3,000.00
₹ 15,000.00 ₹ 15.00
₹ 10,000.00 ₹ 2,000.00
₹ 10.00
₹ 5,000.00 ₹ 1,000.00
₹ 5.00
- - -
2024E
2025E
2026E
2027E
2028E
2014A
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
 Common Size Statement - Asian Paints Ltd
Common Size Income Statement - Asian Paints Ltd

Particulars Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 51.88% 50.49% 46.03% 49.48% 48.31% 51.84% 49.39% 48.02% 58.84% 62.24%
Change in Inventory 0.74% 1.09% -1.40% 3.51% -0.84% 1.52% 1.18% 0.43% 4.55% 0.90%
Power and Fuel 1.09% 0.96% 0.80% 0.70% 0.66% 0.62% 0.48% 0.40% 0.40% 0.00%
Other Mfr. Exp 10.57% 11.05% 10.76% 11.04% 10.05% 9.68% 9.63% 9.53% 9.90% 0.00%
Employee Cost 6.25% 6.88% 6.97% 6.90% 6.67% 6.46% 6.78% 7.13% 6.17% 5.88%
Selling and admin 23.13% 24.62% 27.41% 28.97% 13.40% 12.30% 11.44% 10.34% 10.11% 0.00%
Other Expenses -8.58% -9.39% -12.47% -13.47% 1.02% 1.05% 2.89% 2.65% 2.63% 14.63%
Other Income 1.02% 1.04% 1.50% 2.24% 2.00% 1.42% 1.76% 1.53% 1.02% 1.25%
Depreciation 2.01% 1.95% 1.93% 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49%
Interest 0.39% 0.31% 0.34% 0.25% 0.25% 0.57% 0.51% 0.42% 0.33% 0.42%
Profit before tax 15.01% 15.25% 18.32% 19.65% 18.65% 17.18% 17.96% 19.82% 14.39% 16.49%
Tax 4.68% 4.77% 5.92% 6.26% 6.19% 5.71% 4.23% 5.06% 3.79% 4.33%
Net profit 9.97% 10.25% 12.23% 12.88% 12.12% 11.21% 13.38% 14.46% 10.41% 11.91%
EBITDA 17.05% 17.28% 20.42% 21.61% 20.69% 20.72% 21.98% 23.58% 17.34% 19.14%

Common Size Balance Sheet - Asian Paints Ltd

Particulars Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 1.19% 1.08% 0.91% 0.77% 0.70% 0.59% 0.59% 0.47% 0.42% 0.37%
Reserves 48.83% 52.12% 60.89% 60.52% 60.41% 57.69% 62.18% 62.44% 59.74% 61.62%
Borrowings 3.09% 4.69% 3.06% 4.52% 3.88% 8.12% 6.93% 5.37% 6.91% 7.49%
Other Liabilities 46.90% 42.11% 35.14% 34.19% 35.02% 33.59% 30.30% 31.72% 32.93% 30.52%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 31.72% 29.84% 32.35% 26.63% 27.12% 39.98% 38.87% 28.78% 24.04% 22.37%
Capital Work in Progress 0.89% 2.20% 1.01% 2.08% 10.21% 1.29% 0.87% 0.90% 1.86% 3.95%
Investments 17.63% 17.81% 25.69% 21.38% 15.55% 15.81% 12.51% 23.27% 14.15% 16.52%
Other Assets 7.55% 9.26% 6.77% 10.62% 12.29% 9.06% 10.77% 12.60% 12.53% 11.84%
Receivables 13.75% 13.26% 11.24% 11.66% 12.57% 11.74% 11.12% 12.78% 16.86% 17.97%
Inventory 25.63% 25.34% 18.92% 21.18% 19.31% 19.39% 21.01% 18.66% 26.80% 24.07%
Cash & Bank 2.84% 2.29% 4.02% 6.46% 2.94% 2.74% 4.85% 3.00% 3.76% 3.27%
 WACC MODEL
Weigheted Average Cost of Capital

All Figure are in INR unless stated otherwise

Peer Comps
Debt/ Debt/ Levered Unlevered
1 2 3
Name of the Comp Country Total Debt Total Equity Tax Rate Equity Capital Beta Beta

Asian Paints India 1,932.6 306,354.7 30.00% 0.63% 0.63% 0.97 0.97
Berger Paints India 1,189.0 63,147.3 30.00% 1.88% 1.85% 0.95 0.93
Kansai Nerolac India 287.0 23,749.9 30.00% 1.21% 1.19% 0.91 0.90
Akzo Nobel India 69.7 11,169.5 30.00% 0.62% 0.62% 0.54 0.53
Indigo Paints India 11.9 6,933.4 30.00% 0.17% 0.17% 0.79 0.79

Average 30.00% 0.90% 0.89% 0.83 0.82

Median 30.00% 0.63% 0.63% 0.91 0.90

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 7.45% Risk free Rate 7.00%

Tax Rate 30% Equity Risk Premium 8.41%
4
Post Tax Cost of Debt 5.21% Levered Beta 0.90
Cost of Equity 14.61%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.90

Total Debt 1,932.6 0.63% 0.89% Target Debt /Equity 0.90%
Market Capitalization 306,354.7 99.37% 99.11% Tax Rate 30%
Total Capital 308,287.4 100.00% 100% Levered Beta 0.90

Debt/Equity 0.63% 0.90% Weighted Average Cost of Capital

Notes Cost of Equity 14.61%

1. Tax Rate considered as Marginal Tax Rate for the country Equity Weight 99.11%
2. Levered Beta is based on 5 year monthly data
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate)*Debt/Equity) Cost of Debt 5.21%
4. Levered Beta= Unlevered Beta*(1+(1-Tax Rate)*Debt/Equity) Debt Weight 0.89%

Weighted Cost of Capital 14.52%

 NIFTY MARKET RETURN
Return on Market

Year Retun
2000 -14.65%
2001 -16.18% Average Return 15.41%
1
2002 3.25% Divdent Yield 1.38%
2003 71.90%
2004 10.68% Total Return 15.41%
2005 36.34%
2006 39.83%
2007 54.77%
2008 -51.79%
2009 75.76%
2010 17.95%
2011 -24.62%
2012 27.70%
2013 6.76%
2014 31.39%
2015 -4.06%
2016 3.01%
2017 28.65%
2018 3.15%
2019 12.02%
2020 14.17%
2021 24.12%
2022 4.32%
 BETA REGRESSION DATA
Regression Beta - 2 Years Weekly

Asian Paints Weekly Returns Berger Paints Return Kansai Nerolac Return Akzo Nobel Return Indigo Paints Return Nifty Returns Assian Paints Beta Drifting

Date Closing Price Return Closing Price Return Closing Price Return Closing Price Return Closing Price Return Closing Price Return Levered Raw Beta 0.96
31-05-2021 2,886.2 790.1 571.2 2,124.5 2,479.6 15,670.25 Beta Weight 75.00%
07-06-2021 2,917.2 1.07% 799.8 1.22% 574.3 0.54% 2,152.3 1.31% 2,629.1 6.03% 15,799.35 0.82%
14-06-2021 3,021.8 3.59% 819.1 2.42% 566.0 -1.44% 2,094.2 -2.70% 2,578.0 -1.94% 15,683.35 -0.73% Market Beta 1
21-06-2021 2,978.9 -1.42% 799.7 -2.37% 582.6 2.92% 2,168.0 3.52% 2,514.0 -2.48% 15,860.35 1.13% Market Beta Weight 25.00%
28-06-2021 2,980.0 0.04% 800.6 0.11% 580.7 -0.33% 2,203.5 1.64% 2,519.1 0.20% 15,722.20 -0.87%
05-07-2021 2,985.5 0.19% 837.5 4.61% 596.0 2.65% 2,153.8 -2.26% 2,514.5 -0.18% 15,689.80 -0.21% Adjusted Beta 0.97
12-07-2021 2,964.4 -0.71% 837.3 -0.03% 593.2 -0.47% 2,140.7 -0.61% 2,605.6 3.63% 15,923.40 1.49%
19-07-2021 3,058.1 3.16% 847.6 1.23% 617.1 4.03% 2,147.5 0.32% 2,595.0 -0.41% 15,856.05 -0.42% Berger Paints Beta Drifting
26-07-2021 2,933.8 -4.06% 837.0 -1.25% 619.0 0.30% 2,131.5 -0.75% 2,600.5 0.21% 15,763.05 -0.59%
02-08-2021 2,941.7 0.27% 821.3 -1.87% 629.4 1.69% 2,088.1 -2.03% 2,619.7 0.74% 16,238.20 3.01% Levered Raw Beta 0.93
09-08-2021 2,963.8 0.75% 804.8 -2.01% 621.1 -1.32% 2,110.2 1.06% 2,417.8 -7.71% 16,529.10 1.79% Beta Weight 75.00%
16-08-2021 3,087.0 4.16% 812.8 1.00% 618.5 -0.41% 2,105.9 -0.20% 2,428.7 0.45% 16,450.50 -0.48%
23-08-2021 3,011.5 -2.45% 782.4 -3.75% 615.2 -0.54% 2,093.4 -0.60% 2,586.0 6.48% 16,705.20 1.55% Market Beta 1
30-08-2021 3,311.0 9.94% 827.7 5.79% 612.6 -0.42% 2,144.2 2.43% 2,621.4 1.37% 17,323.60 3.70% Market Beta Weight 25.00%
06-09-2021 3,318.5 0.23% 832.9 0.63% 604.4 -1.35% 2,088.3 -2.61% 2,585.5 -1.37% 17,369.25 0.26%
13-09-2021 3,275.5 -1.29% 815.1 -2.13% 607.1 0.45% 2,102.8 0.70% 2,600.7 0.59% 17,585.15 1.24% Adjusted Beta 0.95
20-09-2021 3,419.9 4.41% 836.4 2.61% 621.6 2.39% 2,098.9 -0.19% 2,583.2 -0.67% 17,853.20 1.52%
27-09-2021 3,151.4 -7.85% 806.8 -3.54% 630.0 1.35% 2,139.4 1.93% 2,521.8 -2.38% 17,532.05 -1.80% Kansai Nerolac Beta Drifting
04-10-2021 3,279.3 4.06% 826.7 2.46% 624.7 -0.86% 2,129.4 -0.47% 2,528.8 0.28% 17,895.20 2.07%
11-10-2021 3,270.3 -0.28% 834.8 0.98% 600.4 -3.88% 2,112.3 -0.80% 2,503.5 -1.00% 18,338.55 2.48% Levered Raw Beta 0.87
18-10-2021 2,957.5 -9.56% 733.2 -12.17% 543.7 -9.44% 2,055.4 -2.70% 2,416.5 -3.48% 18,114.90 -1.22% Beta Weight 75.00%
25-10-2021 3,074.3 3.95% 738.2 0.69% 539.0 -0.87% 1,998.0 -2.79% 2,386.1 -1.26% 17,671.65 -2.45%
01-11-2021 3,136.6 2.03% 759.6 2.90% 568.4 5.47% 2,021.7 1.19% 2,345.7 -1.69% 17,916.80 1.39% Market Beta 1
08-11-2021 3,100.5 -1.15% 791.0 4.13% 589.9 3.77% 2,012.3 -0.46% 2,294.6 -2.18% 18,102.75 1.04% Market Beta Weight 25.00%
15-11-2021 3,203.7 3.33% 784.7 -0.80% 585.6 -0.73% 2,095.6 4.14% 2,296.6 0.09% 17,764.80 -1.87%
22-11-2021 3,120.6 -2.60% 758.7 -3.31% 574.7 -1.86% 1,988.6 -5.10% 2,230.1 -2.89% 17,026.45 -4.16% Adjusted Beta 0.91
29-11-2021 3,088.2 -1.04% 726.7 -4.22% 589.5 2.58% 1,958.3 -1.53% 2,204.8 -1.14% 17,196.70 1.00%
06-12-2021 3,259.6 5.55% 759.1 4.46% 591.7 0.37% 1,958.8 0.03% 2,068.1 -6.20% 17,511.30 1.83% Akzo Nobel Beta Drifting
13-12-2021 3,220.5 -1.20% 749.9 -1.21% 584.5 -1.21% 1,893.4 -3.34% 2,033.2 -1.69% 16,985.20 -3.00%
20-12-2021 3,261.3 1.27% 737.6 -1.64% 570.6 -2.38% 1,877.4 -0.84% 1,910.7 -6.02% 17,003.75 0.11% Levered Raw Beta 0.38
27-12-2021 3,358.7 2.99% 768.4 4.16% 585.9 2.67% 1,945.2 3.61% 2,126.9 11.32% 17,354.05 2.06% Beta Weight 75.00%
03-01-2022 3,550.7 5.72% 787.3 2.46% 592.5 1.13% 1,901.8 -2.23% 2,058.9 -3.20% 17,812.70 2.64%
10-01-2022 3,340.3 -5.93% 768.0 -2.45% 604.9 2.09% 1,882.8 -1.00% 2,068.4 0.46% 18,255.75 2.49% Market Beta 1
17-01-2022 3,251.4 -2.66% 741.5 -3.45% 570.5 -5.68% 1,873.8 -0.48% 2,010.6 -2.80% 17,617.15 -3.50% Market Beta Weight 25.00%
24-01-2022 3,088.6 -5.01% 723.2 -2.46% 565.3 -0.92% 1,839.5 -1.83% 1,955.9 -2.72% 17,101.95 -2.92%
31-01-2022 3,213.5 4.04% 732.0 1.21% 535.8 -5.21% 1,809.3 -1.64% 1,974.0 0.93% 17,516.30 2.42% Adjusted Beta 0.54
07-02-2022 3,193.3 -0.63% 714.8 -2.35% 493.0 -7.99% 1,797.8 -0.63% 1,930.2 -2.22% 17,374.75 -0.81%
14-02-2022 3,235.1 1.31% 734.6 2.76% 490.2 -0.57% 1,843.9 2.56% 1,757.1 -8.97% 17,276.30 -0.57% Indigo Paints Beta Drifting
21-02-2022 3,096.9 -4.27% 682.7 -7.06% 446.8 -8.85% 1,779.0 -3.52% 1,744.4 -0.72% 16,658.40 -3.58%
28-02-2022 2,718.5 -12.22% 650.2 -4.76% 441.0 -1.30% 1,783.8 0.27% 1,645.2 -5.69% 16,245.35 -2.48% Levered Raw Beta 0.72
07-03-2022 2,911.0 7.08% 676.3 4.01% 446.0 1.15% 1,895.8 6.28% 1,637.8 -0.45% 16,630.45 2.37% Beta Weight 75.00%
14-03-2022 3,114.1 6.98% 714.8 5.70% 471.6 5.72% 1,885.0 -0.57% 1,633.8 -0.24% 17,287.05 3.95%
21-03-2022 3,025.1 -2.86% 685.6 -4.09% 450.2 -4.54% 1,888.8 0.20% 1,528.7 -6.43% 17,153.00 -0.78% Market Beta 1
28-03-2022 3,091.8 2.21% 708.5 3.34% 465.6 3.42% 1,867.2 -1.14% 1,613.9 5.58% 17,670.45 3.02% Market Beta Weight 25.00%
04-04-2022 3,183.3 2.96% 731.4 3.23% 460.0 -1.19% 1,859.6 -0.41% 1,670.7 3.52% 17,784.35 0.64%
11-04-2022 3,058.6 -3.92% 721.0 -1.42% 460.9 0.18% 1,840.6 -1.02% 1,618.9 -3.10% 17,475.65 -1.74% Adjusted Beta 0.79
18-04-2022 3,141.7 2.72% 713.5 -1.04% 465.6 1.02% 1,834.0 -0.36% 1,554.1 -4.00% 17,171.95 -1.74%
25-04-2022 3,214.0 2.30% 714.8 0.18% 465.3 -0.05% 1,824.3 -0.53% 1,553.2 -0.06% 17,102.55 -0.40%
02-05-2022 2,994.6 -6.83% 663.8 -7.14% 447.2 -3.89% 1,777.9 -2.54% 1,488.3 -4.18% 16,411.25 -4.04%
09-05-2022 3,042.1 1.58% 653.6 -1.53% 394.5 -11.79% 1,713.6 -3.62% 1,441.3 -3.16% 15,782.15 -3.83%
16-05-2022 3,087.7 1.50% 627.6 -3.98% 395.1 0.15% 1,733.4 1.15% 1,617.2 12.20% 16,266.15 3.07%
23-05-2022 2,814.5 -8.85% 572.7 -8.74% 401.2 1.54% 1,688.1 -2.61% 1,574.6 -2.63% 16,352.45 0.53%
30-05-2022 2,866.2 1.84% 606.2 5.85% 409.1 1.98% 1,743.9 3.31% 1,568.7 -0.38% 16,584.30 1.42%
06-06-2022 2,689.3 -6.17% 578.2 -4.62% 395.5 -3.33% 1,734.3 -0.55% 1,547.1 -1.37% 16,201.80 -2.31%
13-06-2022 2,576.5 -4.20% 558.3 -3.44% 368.4 -6.85% 1,652.5 -4.71% 1,427.8 -7.71% 15,293.50 -5.61%
20-06-2022 2,756.9 7.00% 591.5 5.95% 370.7 0.63% 1,729.5 4.66% 1,423.8 -0.28% 15,699.25 2.65%
27-06-2022 2,769.2 0.44% 579.7 -1.99% 370.0 -0.20% 1,823.2 5.41% 1,381.7 -2.96% 15,752.05 0.34%
04-07-2022 2,875.7 3.85% 582.7 0.52% 388.3 4.94% 1,841.6 1.01% 1,432.0 3.64% 16,220.60 2.97%
11-07-2022 2,973.9 3.42% 571.1 -1.98% 388.9 0.17% 1,864.8 1.26% 1,406.6 -1.78% 16,049.20 -1.06%
18-07-2022 3,063.0 3.00% 586.8 2.75% 399.5 2.72% 1,869.2 0.24% 1,390.8 -1.12% 16,719.45 4.18%
25-07-2022 3,328.9 8.68% 622.0 5.99% 397.4 -0.53% 1,888.9 1.05% 1,389.2 -0.11% 17,158.25 2.62%
01-08-2022 3,468.9 4.20% 670.8 7.85% 498.2 25.36% 1,885.2 -0.20% 1,561.9 12.43% 17,397.50 1.39%
08-08-2022 3,422.9 -1.33% 673.4 0.39% 491.0 -1.44% 1,895.8 0.56% 1,502.1 -3.83% 17,698.15 1.73%
15-08-2022 3,477.5 1.60% 694.0 3.06% 502.4 2.32% 1,876.6 -1.01% 1,508.6 0.43% 17,758.45 0.34%
22-08-2022 3,318.8 -4.57% 660.2 -4.88% 489.7 -2.53% 1,917.0 2.15% 1,667.4 10.53% 17,558.90 -1.12%
29-08-2022 3,426.1 3.23% 668.2 1.21% 496.4 1.38% 1,918.4 0.07% 1,589.6 -4.67% 17,539.45 -0.11%
05-09-2022 3,436.9 0.31% 664.0 -0.62% 510.0 2.74% 1,996.5 4.07% 1,554.0 -2.24% 17,833.35 1.68%
12-09-2022 3,317.8 -3.47% 639.0 -3.77% 476.7 -6.53% 2,108.3 5.60% 1,601.3 3.05% 17,530.85 -1.70%
19-09-2022 3,390.4 2.19% 633.7 -0.83% 476.0 -0.17% 2,132.2 1.13% 1,523.6 -4.86% 17,327.35 -1.16%
26-09-2022 3,337.6 -1.56% 617.0 -2.64% 486.4 2.20% 2,180.6 2.27% 1,499.4 -1.59% 17,094.35 -1.34%
03-10-2022 3,338.9 0.04% 625.9 1.44% 472.5 -2.87% 2,199.1 0.85% 1,493.6 -0.39% 17,314.65 1.29%
10-10-2022 3,180.9 -4.73% 612.4 -2.16% 478.2 1.21% 2,022.9 -8.01% 1,482.7 -0.73% 17,185.70 -0.74%
17-10-2022 3,087.9 -2.92% 585.3 -4.42% 476.1 -0.45% 2,114.2 4.51% 1,418.8 -4.30% 17,576.30 2.27%
24-10-2022 3,049.0 -1.26% 574.8 -1.79% 473.1 -0.63% 2,106.6 -0.36% 1,430.1 0.79% 17,786.80 1.20%
31-10-2022 3,176.8 4.19% 604.3 5.11% 445.1 -5.92% 2,081.3 -1.20% 1,542.7 7.87% 18,117.15 1.86%
07-11-2022 3,055.4 -3.82% 598.1 -1.02% 444.6 -0.11% 2,245.5 7.89% 1,439.3 -6.70% 18,349.70 1.28%
14-11-2022 3,095.5 1.31% 603.5 0.91% 431.2 -2.99% 2,313.4 3.02% 1,336.4 -7.15% 18,307.65 -0.23%
21-11-2022 3,108.1 0.41% 616.7 2.18% 432.4 0.28% 2,283.8 -1.28% 1,318.8 -1.31% 18,512.75 1.12%
28-11-2022 3,143.4 1.14% 616.4 -0.05% 437.8 1.24% 2,270.6 -0.58% 1,340.6 1.65% 18,696.10 0.99%
05-12-2022 3,226.9 2.66% 615.2 -0.20% 443.7 1.35% 2,225.6 -1.98% 1,331.7 -0.66% 18,496.60 -1.07%
12-12-2022 3,055.9 -5.30% 594.8 -3.30% 426.9 -3.79% 2,250.8 1.13% 1,319.1 -0.95% 18,269.00 -1.23%
19-12-2022 3,057.9 0.07% 575.5 -3.24% 420.2 -1.57% 2,165.7 -3.78% 1,252.5 -5.05% 17,806.80 -2.53%
26-12-2022 3,087.9 0.98% 581.3 1.01% 436.4 3.85% 2,194.4 1.32% 1,302.6 4.00% 18,105.30 1.68%
02-01-2023 2,978.4 -3.55% 568.4 -2.23% 416.6 -4.52% 2,186.0 -0.38% 1,294.3 -0.64% 17,859.45 -1.36%
09-01-2023 2,909.1 -2.33% 562.2 -1.10% 410.7 -1.43% 2,200.0 0.64% 1,281.7 -0.97% 17,956.60 0.54%
16-01-2023 2,787.8 -4.17% 557.2 -0.89% 415.8 1.25% 2,233.5 1.52% 1,231.1 -3.95% 18,027.65 0.40%
23-01-2023 2,722.6 -2.34% 539.5 -3.17% 407.7 -1.96% 2,216.1 -0.78% 1,212.9 -1.47% 17,604.35 -2.35%
30-01-2023 2,760.4 1.39% 558.3 3.48% 414.9 1.78% 2,185.2 -1.39% 1,136.1 -6.34% 17,854.05 1.42%
06-02-2023 2,804.6 1.60% 571.6 2.38% 416.8 0.47% 2,289.1 4.75% 1,161.8 2.26% 17,856.50 0.01%
13-02-2023 2,833.6 1.03% 569.0 -0.46% 411.9 -1.18% 2,153.1 -5.94% 1,080.7 -6.98% 17,944.20 0.49%
20-02-2023 2,738.5 -3.36% 558.0 -1.92% 416.4 1.10% 2,169.5 0.76% 1,016.9 -5.90% 17,465.80 -2.67%
27-02-2023 2,828.9 3.30% 580.8 4.07% 407.9 -2.05% 2,184.9 0.71% 1,079.5 6.16% 17,594.35 0.74%
06-03-2023 2,830.2 0.05% 589.1 1.44% 405.6 -0.57% 2,280.9 4.39% 1,042.4 -3.43% 17,412.90 -1.03%
13-03-2023 2,862.6 1.15% 593.5 0.74% 396.6 -2.22% 2,304.3 1.03% 1,042.7 0.02% 17,100.05 -1.80%
20-03-2023 2,798.5 -2.24% 573.7 -3.33% 381.9 -3.71% 2,352.4 2.09% 1,016.9 -2.47% 16,945.05 -0.91%
27-03-2023 2,761.6 -1.32% 581.7 1.39% 384.3 0.62% 2,300.6 -2.20% 1,008.3 -0.84% 17,359.75 2.45%
03-04-2023 2,809.9 1.75% 597.2 2.66% 389.3 1.32% 2,231.4 -3.00% 1,086.8 7.78% 17,599.15 1.38%
10-04-2023 2,809.8 0.00% 578.6 -3.11% 378.7 -2.73% 2,303.9 3.24% 1,082.7 -0.38% 17,828.00 1.30%
17-04-2023 2,882.1 2.57% 584.6 1.04% 379.7 0.28% 2,303.5 -0.02% 1,146.8 5.93% 17,624.05 -1.14%
24-04-2023 2,902.4 0.70% 610.3 4.40% 377.7 -0.55% 2,324.7 0.92% 1,153.6 0.58% 18,065.00 2.50%
01-05-2023 3,012.9 3.81% 617.3 1.13% 391.6 3.68% 2,408.6 3.61% 1,209.5 4.85% 18,069.00 0.02%
08-05-2023 3,131.1 3.92% 633.7 2.66% 415.6 6.14% 2,470.4 2.57% 1,301.1 7.57% 18,314.80 1.36%
15-05-2023 3,084.4 -1.49% 625.3 -1.33% 405.7 -2.38% 2,434.0 -1.48% 1,403.7 7.89% 18,203.40 -0.61%
22-05-2023 3,128.4 1.42% 647.1 3.49% 407.6 0.47% 2,499.1 2.67% 1,507.4 7.39% 18,499.35 1.63%
29-05-2023 3,144.4 0.51% 648.8 0.27% 440.9 8.16% 2,453.6 -1.82% 1,456.3 -3.39% 18,633.85 0.73%
 INTRINSIC GROWTH
Calculation of ROIC Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Current Assets
Inventories 3,150.0 3,390.0 3,799.0 6,153.0 6,211.0
Trade receivables 1,907.0 1,795.0 2,602.0 3,871.0 4,637.0
Loans n Advances 1,058.0 1,177.0 1,846.0 2,216.0 365.0
Other asset items 414.0 561.0 720.0 661.0 2,689.0
Total Current Assets 6,529.0 6,923.0 8,967.0 12,901.0 13,902.0

Current Liabilities
Trade Payables 2,394.0 2,137.0 3,379.0 4,164.0 3,635.0
Other liability items 2,690.0 2,320.0 2,613.0 2,932.0 3,784.0
Total Current Liabilities 5,084.0 4,457.0 5,992.0 7,096.0 7,419.0

Net Working Capital 1,445.0 2,466.0 2,975.0 5,805.0 6,483.0

Non Current Assets

Land 605.0 640.0 644.0 644.0 11,340.0
Building 2,402.0 2,257.0 2,249.0 2,325.0 -
Plant Machinery 4,006.0 4,208.0 4,340.0 4,531.0 -
Equipments 221.0 241.0 243.0 253.0 -
Furniture n fittings 88.0 94.0 99.0 113.0 -
Vehicles 47.0 43.0 38.0 32.0 -
Intangible Assets 512.0 505.0 476.0 411.0 416.0
Other fixed assets 261.0 293.0 302.0 294.0 -

Gross Block 8,142.0 8,281.0 8,391.0 8,603.0 11,756.0

Accumulated Depreciation (1,592.0) (2,010.0) (2,533.0) (3,085.0) -
Net Non Current Assets 6,550.0 6,271.0 5,858.0 5,518.0 11,756.0

Invested Capital 7,995.0 8,737.0 8,833.0 11,323.0 18,239.0

EBIT 2,905.9 3,388.4 3,384.8 4,716.1 4,538.9

ROIC 36.35% 38.78% 38.32% 41.65% 24.89%

Calculation of Reinvestment Rate Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Net Capex 367.0 254.0 498.0 1,420.0

Change in Working Capital - 1,021.0 509.0 2,830.0 678.0

EBIT 3,388.4 3,384.8 4,716.1 4,538.9

Marginal Tax Rate 25% 25% 25% 25%
EBIT(1-T) 2,541.3 2,538.6 3,537.1 3,404.2

Reinvestment - 1,388.0 763.0 3,328.0 2,098.0

Reinvestment Rate 54.62% 30.06% 94.09% 61.63%

4 Year
Average 60.10%
4 Year
Median 58.12%

Calculation of Growth Rate Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Reinvestment Rate 54.62% 30.06% 94.09% 61.63%

ROIC 36.35% 38.78% 38.32% 41.65% 24.89%
Intrinsic Growth 21.18% 11.52% 39.19% 15.34%

4 Year
Average 21.81%
4 Year
Median 18.26%
 DCF CALCULATION
Calculation of PV of FCFF Mar-23A Mar-24F Mar-25F Mar-26F Mar-27F Mar-28F

EBIT 4,538.90 5,367.68 6,347.79 7,506.87 8,877.59 10,498.60

Tax Rate 25% 25% 25% 25% 25% 25%
EBIT (1-T) 3,404.18 4,025.76 4,760.85 5,630.15 6,658.19 7,873.95
Less: Reinvestment Rate 58.12% 55.88% 53.63% 51.39% 49.14% 49.14%

Free Cash Flow Rate 1,425.53 1,776.25 2,207.51 2,737.04 3,386.36 4,004.69
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounted Factor 0.934 0.816 0.712 0.622 0.543
PV of FCFF 1,659.81 1,801.22 1,950.10 2,106.77 2,175.52

Expected Growth 18.26%

Terminal Growth 5.30%
WACC 14.52% Sensitivity Analysis of Operating Assets
37,590.60 10.50% 12.50% 14.52% 16.50% 18.50%
3.00% 43,996.9 36,775.1 32,022.0 28,750.9 26,291.9
Calculation of Terminal Value 4.00% 49,274.4 39,961.2 34,144.0 30,275.5 27,436.6
5.30% 59,169.6 45,426.2 37,590.6 32,664.5 29,184.0
FCFF (n+1) 4,735.93 6.00% 66,865.9 49,274.4 39,882.0 34,195.9 30,275.5
WACC 14.52% 7.00% 83,200.9 56,470.9 43,895.2 36,775.1 32,065.3
Terminal Growth Rate 5.30%
Terminal Value 51,352.97

Calculation of Equity Value per Share

PV of FCFF 9,693.43 Sensitivity Analysis of Equity Value per share

PV of Terminal Value 27,897.18 390.56 10.50% 12.50% 14.52% 16.00% 18.00%
Value of Operating Assets 37,590.60 3.00% 457.3 382.1 332.6 306.0 278.5
4.00% 512.4 415.3 354.7 323.2 291.3
Add : Cash 843.82 5.30% 615.5 472.2 390.6 350.4 310.9
Less : Debt 972.00 6.00% 695.8 512.4 414.5 367.9 323.2
Value of Equity 37,462.42 7.00% 866.1 587.4 456.4 397.7 343.6
No of Shares 95.92
Equity Value per Share 390.56

Share Price 3128.4

Discount/Premium 7.01x
 COMPANY COMPARABLE VALUE
Amount in Crores
Comparable Company Valuation

Market Data Financials Valuation

Share Share Equity Enterprise
Company Ticker Price Outstanding Value Net Debt Value Revenue EBITDA Net Income EV/Revenue EV/ EBITDA P/E

Asian Paints 3,241 95.92 310,337 1,933 312,270 34,489 6,740 4,195 9.1x 46.3x 74.0x
Berger Paints 651 97.14 63,109 1,189 64,298 10,568 1,525.60 860 6.1x 42.1x 73.3x
Kansai Nerolac 431 53.89 23,209 287 23,496 7,543 843.97 468 3.1x 27.8x 49.5x
Akzo Nobel 2,467 4.55 11,249 70 11,319 3,802 552.50 335 3.0x 20.5x 33.6x
Indigo Paints 1,473 4.76 7,015 12 7,027 1,073 191.60 132 6.5x 36.7x 53.2x

High 9.1x 46.3x 74.0x

75th Percentile 6.5x 42.1x 73.3x
Average 5.6x 34.7x 56.7x
Median 6.1x 36.7x 53.2x
25th Percentile 3.1x 27.8x 49.5x
Low 3.0x 20.5x 33.6x

Asian Paints Comparable Valuation EV/Revenue EV/ EBITDA P/E

Impiled Enterprise Value 209,838 247,202 224,999

Net Debt 1,933 1,933 1,933
Impiled Market Value 207,905 245,270 223,066
Share Outstanding 95.92 95.92 95.92

Implied Value Per Share 2,167.5 2,557.0 2,325.5

Source Screener.in,The Valuation School

Over Valued OverValued OverValued
 Football Field Analysis of Asian Paints

Football Field Analysis

Football Field Analysis - Valuation Summary (Rs.)
4,000.0 Open Low Low Open High High
₹ 3,590.00
Comps 278.5 278.5 866.1 866.1
3,500.0
DCF Bear 278.5 278.5 343.6 343.6
3,000.0 DCF Base 332.6 332.6 456.4 456.4
2,500.0 DCF Bull 457.3 457.3 866.1 866.1
52W H/L 2,560 2,560 3,590 3,590
2,000.0

1,500.0
₹ 866.06 ₹ 866.06
1,000.0
₹ 343.56 ₹ 456.40
500.0

0.0
Comps DCF Bear DCF Base DCF Bull 52W H/L
 VAR Model of Asian Paints - Historical Approach
Date Adj Close Return Sortered Return Calculation of Value at Risk - Asian Paints ( Historical)
23-10-09 150.115982 1.244739 0.09658679
15-01-07 66.874596 -0.30199 0.092896199 Mean 0.12%
25-10-07 95.80761 -0.94416 0.091229358 Std Deviation 1.68%
20-03-20 1715.77002 -0.37331 0.088527294 Max 9.66%
14-05-21 2737.82544 142.6115 0.085400262 Min -14.03%
16-05-03 19.06411 -0.5914 0.08306247 CMP 3128.40
09-06-06 46.656651 -0.97355 0.08263678
23-09-19 1764.27258 16.94913 0.078845019 Percentile Confidence VAR % Stock Price VAR (INR)
28-01-08 98.292938 -0.78067 0.076603192 5% 95.00% 0.80% 3103.25 25.15
19-09-13 448.143524 -0.72596 0.075420899 1% 99.00% 0.74% 3105.25 23.15
20-09-19 1635.3346 15.80333 0.075358732 0.50% 99.50% 0.74% 3105.37 23.03
21-05-09 97.322067 4.310005 0.075121111
02-05-03 18.328054 -0.79832 0.07472816
21-10-08 90.875877 -0.87963 0.072366005
01-12-14 754.985718 31.56206 0.070296653
18-05-04 23.186058 -0.98549 0.06998919
07-04-20 1598.47839 57.85361 0.067657422
23-01-04 27.160246 -0.64953 0.066739714
15-04-09 77.497269 -0.24688 0.066402651
30-01-08 102.901741 0.732546 0.065174271
06-02-06 59.393379 -0.92357 0.063306384
08-01-15 777.056213 6.349636 0.063042562
07-01-08 105.727173 -0.90239 0.062669806
28-07-16 1083.19409 3.62329 0.062346833
28-07-10 234.290771 1.241788 0.060614789
 VAR Model of Asian Paints - Monte Carlo Simulation
Date Adj Close Return Sortered Replication
Simulated Returns Calculation of Value at Risk - Asian Paints ( Historical)
23-10-09 150.116 1.244739 0.096587 1 -0.01583
15-01-07 66.8746 -0.30199 0.092896 2 -0.03792 Historical Approcach
25-10-07 95.80761 -0.94416 0.091229 3 0.029595 Mean 0.12%
20-03-20 1715.77 -0.37331 0.088527 4 0.01271 Std Deviation 1.68%
14-05-21 2737.825 142.6115 0.0854 5 -0.00417 Max 9.66%
16-05-03 19.06411 -0.5914 0.083062 6 -0.00938 Min -14.03%
09-06-06 46.65665 -0.97355 0.082637 7 0.013807 CMP 3128.40
23-09-19 1764.273 16.94913 0.078845 8 -0.01289
28-01-08 98.29294 -0.78067 0.076603 9 0.009233 Monte Carlo Simulation
19-09-13 448.1435 -0.72596 0.075421 10 -0.00326 Mean 0.17%
20-09-19 1635.335 15.80333 0.075359 11 -0.02004 Std Deviation 1.69%
21-05-09 97.32207 4.310005 0.075121 12 0.009642 Max 5.45%
02-05-03 18.32805 -0.79832 0.074728 13 -0.00275 Min -7.22%
21-10-08 90.87588 -0.87963 0.072366 14 -0.0022 CMP 3128.40
01-12-14 754.9857 31.56206 0.070297 15 0.005012
18-05-04 23.18606 -0.98549 0.069989 16 -0.0098 Percentile Confidence VAR %Stock Price VAR (INR)
07-04-20 1598.478 57.85361 0.067657 17 0.006916 5% 95.00% -2.63% 3210.64 -82.24
23-01-04 27.16025 -0.64953 0.06674 18 0.004996 1% 99.00% -3.96% 3252.22 -123.82
15-04-09 77.49727 -0.24688 0.066403 19 0.006248 0.50% 99.50% -4.31% 3263.28 -134.88
30-01-08 102.9017 0.732546 0.065174 20 0.024309
06-02-06 59.39338 -0.92357 0.063306 21 0.011807
08-01-15 777.0562 6.349636 0.063043 22 0.0148
07-01-08 105.7272 -0.90239 0.06267 23 -0.01476
28-07-16 1083.194 3.62329 0.062347 24 -0.00032
28-07-10 234.2908 1.241788 0.060615 25 0.030422
27-02-08 104.5107 -0.41312 0.059684 26 -0.00535
03-03-10 178.079 -0.94316 0.059493 27 0.000215
20-07-21 3132.724 5.493067 0.059391 28 0.003033
21-10-13 482.4721 1.010847 0.059355 29 -0.03493
28-10-10 239.9348 1.854084 0.058279 30 0.006428
13-05-09 84.06716 -0.93239 0.058119 31 0.005769
11-05-18 1243.362 -0.42582 0.056459 32 -0.00346
27-10-20 2165.443 18.92672 0.056406 33 -0.01099
ASIAN PAINTS LTD
(ASIANPAINT | BSE Code 500820)
INR 3128.4
52 Week ( High - INR ₹ 3582.9 & Low 2560 )

About The Company

Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai, Maharashtra, India.The
company 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 is India's largest paints company by market share. It is the holding company of Berger International. The
company's manufacturing operations encompass 15 countries of the world including India, with considerable
presence in the Indian subcontinent and the Middle East.

Financial Summary

Revenues (INR Crs.) Net Profit (INR Crs.) Average Total Assets (INR Crs.)
34,489 4,106 24,378
29,101 21,657
3,139 3,031 18,247
21,713 2,705 16,193
20,211

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Return on Equity Return on Assets Financial Leverage

1.09x
18.20% 17.57% 17.93% 17.20% 16.84%
16.71%
1.07x
14.99% 1.06x
13.99%

1.02x

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Recent Updates
• Asian Paints on Thursday reported a 45 per cent year-on-year (YoY) jump in the consolidated net profit at Rs 1,234.14 crore
for the quarter ended on March 31, 2023, against a net profit of Rs 850.42 crore in the same quarter previous year.
• On a sequential basis (QoQ), Asian Paints' net profit and revenue from operations increased 15 per cent and 2 per cent from
Rs 1,072.67 crore and Rs 8,607.50 crore, respectively, in the December 2022 quarter, the company said in the filing with the
exchanges.
• The shares of Asian Paints extended their gains and jumped about 3 per cent to Rs 3,129 on Thursday following a strong Q4
performance.
• The company board has fixed Friday, June 9, 2023 as the record date for determining entitlement of shareholders to final
dividend for the financial year 2022-23. The dividend, approved by the shareholders, will be paid on or after Friday, June 30,
2023, the company's statement added. The total dividend for the financial year ended March 31, 2023, aggregates to Rs
25.65 per equity share of the face value of Re 1. The dividend payout ratio of 60 per cent, including an interim dividend of
Rs 4.40 per equity share as approved by the Board of Directors at their meeting held on October 20, 2022. which was paid
thereafter.
 Return on Equity (ROE)
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,939.4 2,038.9 2,155.9 2,705.2 3,139.3 3,030.6 4,106.5
Average Shareholder Equity 10,866.3 12,212.2 13,675.7 14,865.4 17,871.4 20,214.7 22,898.0
Return on Equity (ROE) 17.85% 16.70% 15.76% 18.20% 17.57% 14.99% 17.93%

ROE - Dupont Equation

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,939.4 2,038.9 2,155.9 2,705.2 3,139.3 3,030.6 4,106.5
Revenue 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6
Net Profit Margins (A) 12.88% 12.12% 11.21% 13.38% 14.46% 10.41% 11.91%

Revenue 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6

Average Total Asstes 11,482.1 13,084.3 15,006.2 16,193.4 18,246.7 21,656.9 24,378.2
Assets Turnover Ratio (B) 1.31x 1.29x 1.28x 1.25x 1.19x 1.34x 1.41x

Average Total Asstes 11,482.1 13,084.3 15,006.2 16,193.4 18,246.7 21,656.9 24,378.2
Average Shareholder Equity 10,866.3 12,212.2 13,675.7 14,865.4 17,871.4 20,214.7 22,898.0
Equity Multiplier (C) 1.06x 1.07x 1.10x 1.09x 1.02x 1.07x 1.06x

Return on Equity (A*B*C*) 17.85% 16.70% 15.76% 18.20% 17.57% 14.99% 17.93%

Return on Assets (ROA)

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,939.4 2,038.9 2,155.9 2,705.2 3,139.3 3,030.6 4,106.5
Average Total Assets 11,482.1 13,084.3 15,006.2 16,193.4 18,246.7 21,656.9 24,378.2
Return on Assets (ROA) 16.89% 15.58% 14.37% 16.71% 17.20% 13.99% 16.84%

ROA - Dupont Equation

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,939.4 2,038.9 2,155.9 2,705.2 3,139.3 3,030.6 4,106.5
Revenue 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6
Net Profit Margins (A) 12.88% 12.12% 11.21% 13.38% 14.46% 10.41% 11.91%

Revenue 15,062.0 16,824.6 19,240.1 20,211.3 21,712.8 29,101.3 34,488.6

Average Total Asstes 11,482.1 13,084.3 15,006.2 16,193.4 18,246.7 21,656.9 24,378.2
Assets Turnover Ratio (B) 1.31x 1.29x 1.28x 1.25x 1.19x 1.34x 1.41x

Return on Assets (A*B*C*) 16.89% 15.58% 14.37% 16.71% 17.20% 13.99% 16.84%

Recent Updates
• ROE of Asian Paints has been increased throught the period from 17.85% in 31st March 2017 to 17.93% in 31st
March 2023.
• ROE has increased in past 7 years from 17.85% to 17.93%. While the company is decrease the net profit margins
from 12.88% FV2017 to 11.91% in FY2023. Financial leverage of the company is constantly maintained throughout
the period, the main reason for increase in ROE is rise in the Assets Turnover Ratio from 1.31% in FY2017 to 1.41%
in FY2023.
• ROA of Asian Paints has been minor decreased from 16.89% in FY2017 to 16.84% FY2023. While the asset efficiency
is increased, the reason for decreased in ROA is decreased in net profit margins of the company.

Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any losses due to
action taken basis this report. It is advisable to consult SEBI registered research analyst before making any investments.