Asian Paints Limited is an Indian company that is involved in the manufacture, sale and distribution of paints, coatings and other home décor products around the world.
As of March 2018, Asian Paints has a market capitalisation of over Rs.109,000 crore.
Wealth and recent performance
- According to the audited financial results for the quarter ended December 2017, the total income of the company in the third quarter of the fiscal year 2017–2018 was Rs.3,655.79 crore, which was a lower than the total income in the previous quarter which stood at Rs.3,666.04 crore.
- The total income of the company in the third quarter of the fiscal year 2016–2017 was Rs.3,689.69 crore. This was a higher amount than the total income in the third quarter of the financial year 2017–2018.
- Total expenses reduced from Rs.2,964.23 crore in the second quarter of the financial year 2017–2018 to Rs.2,852.67 in the third quarter of the same financial year.
- Total expenses in the third quarter of the previous financial year ending 2017 was Rs.3,045.54 crore.
- The profit before tax in the second quarter of the financial year 2018 was Rs.701.81 crore and the profit before tax in the third quarter of the same financial year was Rs.803.12 crore. This was an increase of almost Rs.100 crore.
- The profit before tax in the third quarter of the previous financial year ending 2017 was Rs.644.15. There was a marked increase in profits in the third quarter of the next year.
- The total profit for the third quarter of the financial year ending 2018 was Rs.528.97 crore which was an increase from the total profit in the previous quarter in the same financial year at Rs.473.45 crore.
- Notably, the total profit for the third quarter in the previous financial year ending 2017 was Rs.425.83 crore.
- As of 2014, the company was operating at close to zero debt, positioning it in a way that would help it to weather economic slowdowns.
Stock trend in 2018
- In January 2018, Asian Paints stock opened at around Rs.1,143.
- There was a slight dip in prices for the first couple of days of trading in January but this dip of close to Rs.2 was followed by a steep increase in price to about Rs.1,185.
- Till mid-January, the stock kept gaining in price, not going below around Rs.1,177 to end at about Rs.1,204 on 15 January, 2018.
- After this, the stock dipped, with the steepest decrease coming between 19 and 24 January, 2018 when the stock hit a low of about Rs.1,150.
- The stock held steady for a few days before dipping again on the last couple of days of January to end the month at about Rs.1,126.
- February 2018 saw an increase in prices to about Rs.1,153 but dipped again after that to reach a low of Rs.1,110.
- The stock gained again after that, but did not breach Rs.1,150.
- On 23 February, the stock dropped to about Rs.1,101 which was its lowest value for February.
- The stock gained again in March 2018 but did not breach the Rs.1,120 mark until after the first week.
- The stock appeared to continue to rise after that.
Stock history (2016–2017)
- In January 2016, the stock opened at around Rs.878. This was followed by about four days of gain, with a peak of about Rs.900. After this, the stock dropped, with a lowest value of about Rs.840 around the third week of the month. After this drop, the stock did not regain the high of Rs.900 for the rest of the month. The stock opened at about Rs.887 in February 2016 and this was followed by a decline in two days which caused the stock to fall to Rs.863.The stock recovered almost immediately in the next two days, reaching a peak of about Rs.899. Beyond this point, the stock kept dropping to reach a low of about Rs.835 and closed at about Rs.846 by the end of the month. In March, the stock opened at about Rs.871, reaching a high of Rs.899 around mid-March, followed by a period of steep decreases in the price. The lowest price in March was about Rs.845. This culminated in the stock closing at Rs.868 by the end of the month.
- Thus, for the final quarter of the financial year ending 2016, the stock fluctuated a lot with a number of steep increases and decreases. There were no steady gains throughout the period.
- In April 2016, the stock opened at about Rs.870. The first week of April marked a period of reducing prices, with a low of about Rs.851. This was followed by a period of increase in which the stock climbed to about Rs.889 at least twice before closing at about Rs.866 at the end of the month. By the second week of May 2016, the stock had climbed to over Rs.900, and the stock continued to climb after that for the rest of the month. The highest price for the month was about Rs.998 but the price at the close of the month was around Rs.984. This was still a gain from the price at the beginning of the month. The stock breached the Rs.1,000 mark in June 2016, and the end of the first week saw the price climb to about Rs.1,032. This was then followed by a week of reducing prices in which the stock reduced to about Rs.986. The stock then climbed again to over Rs.1,000, with the company announcing a dividend, a final 530% in mid-June. After this, the prices dropped again to below Rs.1,000 but ended that month at about Rs.1,003.
- Thus, the first quarter of the financial year ending 2017 was extremely positive for Asian Paints in terms of stock prices.
- The beginning of July 2016 saw a slight dip in prices, during which the stock price was less than Rs.1,000 but this was only for a couple of days. The stock resurged to gain a price of over Rs.1,000. The stock continued to gain for the rest of the month, breaching the Rs.1,100 mark with a peak of about Rs.1,128. The stock closed at about Rs.1,114 at the end of the month. For the entire duration of August, the stock fluctuated between Rs.1,100 and Rs.1,150. The last day of the month saw the price breach the Rs.1,150 mark to close at about Rs.1,157 for the month. September 2016 saw a period of sharp growth with the price briefly crossing Rs.1,200 but continuing below that for the rest of the month. There were no sharp increases or decreases and the stock closed at about Rs.1,160 at the end of the month.
- Thus, second quarter of the financial year ending 2017 was also a period gain for Asian Paints stock.
- October 2016 saw the stock price go over Rs.1,200 twice with a maximum price of about Rs.1,216 which was then followed by a period of steady decrease in the price of the stock. The month saw a low of about Rs.1,069 and the stock closed at about Rs.1,075 at the end of the month. The beginning of November saw a dividend announcement of an interim 265%. The stock held relatively steady from the beginning of November till about 9 November, at around Rs.1,030 to Rs.1,050 but the stock declined steeply after that, reaching a low of around Rs.890 around mid-month. This was the lowest the stock had been thus far in that quarter, and the first time it had dropped below Rs.1,000 in the last few months. The rest of the month saw the price fluctuate between Rs.900 and Rs.970. The stock closed at about Rs.969 at the end of the month. December saw the price decline further with the lowest price for the month being about Rs.865. The stock did not breach the Rs.900 mark for the rest of the month.
- Beginning January 2017, the stock saw a period of gain, with close to no decreases in price. The highest the stock price was in January was about Rs.977 and the stock closed at about Rs.970 at the end of the month. February marked a period of heavy fluctuation in prices with the lowest price recorded being around Rs.960 and the highest price recorded being around Rs.1,024. March 2017 marked a period of steady gains with the stock going up to Rs.1,087 at the maximum and ending at about Rs.1,073 at the close of the month.
- The first week of April 2017 saw the price hold steady at about Rs.1,080 followed by a dip to Rs.1,059. The stock gained again and reached a peak of Rs.1,078 by mid-month and this was followed by a steep decrease in the next four days with the price touching close to Rs.1,040. Beyond this point, the stock continued to gain for the rest of the month with the stock touching about Rs.1,120 in the month. This was also the closing rate for that month. May saw a price gain that continued for the first week with a high about Rs.1,167. This was followed by a period with minimal changes in price for a couple of more days before a dip in prices, causing the price to drop to around Rs.1,132. Then, the stock gained again but it dipped again to reach a low of Rs.1,091. The stock then recovered to over Rs.1,100 and closed at about Rs.1,151 at the end of the month. The month of June did not see any drastic fluctuations in price with the stock reaching a high of Rs.1,162 in that month. There was a dividend announcement in the month, a special 200%, which came out on 15 June, 2017. In the last week of the month, the stock dropped to close at about Rs.1,102 at the end of the month.
- For most of July 2017, the stock held steady breaching the Rs.1,150 mark again around 19 July. The rest of the week saw the prices hold steady at over Rs.1,150 ending the month at Rs.1,161. For the first two weeks of August 2017, the price fluctuated between Rs.1,140 and Rs.1,150 dipping below Rs.1,140 after that. The stock gained again towards the end of the month to close at about Rs.1,168. The stock opened at over Rs.1,215 in September with a high of about Rs.1,256 in that month. The stock remained at over Rs.1,200 until the last week of the month during which it dropped below Rs.1,200. The end of the month saw the stock close at about Rs.1,131.
- The first week of October 2017 saw the stock breach the Rs.1,150 mark again and the stock gained till about Rs.1,197 till about mid-month. The stock then breached the Rs.1,200 mark around the third week of the month which was followed by a dip that then ended with the stock closing at about Rs.1,180 for the month. A dividend was announced on the last day of the month, of interim 265%. In November, the stock dipped to below Rs.1,150 but regained almost immediately after. The stock then remained between Rs.1,150 and Rs.1,200 for the rest of the month, closing at Rs.1,146. December saw the stock price go to a low of about Rs.1,104 after which the stock gained to breach the Rs.1,150 mark around the end of the month. The stock held steady at around that price, ending the month at around Rs.1,158.
Should one invest in Asian Paints?
- The Asian Paints stock has increased almost 7000% by 2017 from the price it began at in the year 2000.
- With regard to business generated on capital invested, the company has generated a return rate of over 35% year after year.
- The sales growth of the company has been an upward graph for the last three years (2015, 2016, 2017).
- For the ten years between 2005–2006 to 2014–2015, the company grew consistently.
- All of these indicate that the company is performing strongly with high rewards for long-term investors.
- While a number of reasons can be given with regard to investing in Asian Paints, it is better to perform personal research based on needs and risk appetites while keeping in mind one’s financial freedom to invest.
Asian paints produces a number of products. These range from paints and coatings for interiors and exteriors to wood and metal finishes. It is the leading paint company in India, and according to the company, it is double the size of most of its competitors. The company operates in about 16 countries and it has 25 facilities around the world in which it manufactures paint. The company also offers its services in 65 countries globally. The company’s stated aim is to become one of the top five companies in the world in its segment.
Asian Paints was started in Mumbai in 1942. It was begun at a time when imports of paint to India were curtailed temporarily. By 1952, the company had reported an annual turnover of Rs.23 crore. In 1954, the company created a mascot. Initially the mascot was used in print advertisements and in the 1990s, the mascot featured in the company’s television advertisements too. In the 1990s, the company began to expand outside of India. Around the year 2000, the company stopped using the mascot they had created. As of 2008, three families, along with the Unit Trust of India held about 47.81% of the shares of the company.
The management at Asian Paints consists of Mr. Ashwin Choksi who is the Chairman, Mr. Ashwin Dani who is the Vice Chairman, Mr. K B S Anand who is the Managing Director and CEO, four Non Executive Directors, six Independent Directors and one Additional Independent Director.
Asian Paint’s shares are traded on the BSE and the NSE.
BSE: 500820; NSE: ASIANPAINTEQ; ISIN code: INE021A01026; Sector: Paints and pigments; Industry: Paints/Varnishes
Other than these, the company is also listed on the Bangalore Stock Exchange Limited, Cochin Stock Exchange Limited, et cetera.
Asian Paints also forms a part of indices like, the Nifty 100, Nifty LargeMidcap 250, S&P BSE 100, et cetera.
Asian Paints Limited, Asian Paints House, 6A, Shantinagar, Santacruz (E), Mumbai – 400 055, India
Tel : 022 6218 1000
Fax: 022 6218 1111
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