What Is The Equity Analysis Of Asian Paints

976 Words4 Pages
Asian Paints Equity Analysis Report | Sector: Consumer goods
CMP: INR842.65 (14 January 2015) TP: INR860 (+2%) Neutral
Asian Paints is India’s largest paint company and Asia’s third largest paint company, with a turnover of Rs 127.15 billion. The group has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. Asian Paints operates in 17 countries and has 23 paint manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.
Valuation and View
…show more content…
Moreover, decisive policy measures by the new business‐friendly government will spur urban demand. Diversification into water proofing, modular kitchens and bath fittings places the company in a sweet spot to corner higher wallet. Account for 3QFY15 miss, we estimate 30.5% EPS CAGR over FY15E-17E, with underlying gross and EBITDA margin expansion of 420bp and 380bp, respectively. With improving macro scenario and consumer confidence should drive volume growth, valuations at 42.4x FY16E and 34.6x FY17E discounts the positives, in our view. Maintain Neutral with a revised target price of INR860 (35x FY17E, three-year average
Get Access