Asian Paints (ASIANPAINT)
StalwartFairStock Score: 59/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,696.3 |
| Market Cap | ₹2,58,479.25 Cr |
| P/E Ratio | 54.35 |
| ROCE | 25.72% |
| ROE | 19.97% |
| Dividend Yield | 1.02% |
| Profit Growth | 39.9% |
| Debt/Equity | 0.18 |
| Sales Growth | 17.9% |
| Free Cash Flow | ₹3,483 Cr |
| Promoter Holding | 52.63% |
| 52-Week Range | ₹2,115 — ₹2,985.7 |
| Sector | Consumer Durables |
| Book Value | ₹222.81 |
Strengths
- Dominant brand and distribution moat reflected in 19.97% ROE and 25.72% ROCE
- Low leverage: D/E 0.18 and current ratio 1.82, with strong FCF of ₹3,483 Cr
- Promoter holding at 52.63% aligns long-term interests
- Piotroski F-Score 8/9 and Altman Z-Score 14.26 indicate excellent financial health
- 5-year revenue CAGR of 9.32% shows historical compounding ability
Concerns
- Severely overvalued: P/E 55.86, P/B 12.36, EV/EBITDA 91.98
- Price far above intrinsic estimates: Graham Number ₹429.15, DCF ₹495.15, margin of safety -453.70%
- Recent stagnation: sales growth only 1.22%, profit declined -8.73%
- Dividend yield low at 1.04%, offering little income support
AI Analysis
At first glance, Asian Paints looks like the kind of business I admire. It has a powerful brand, an unmatched distribution network, and pricing power—the moat is evident in its 19.97% ROE and 25.72% ROCE, with negligible debt (D/E 0.18) and robust free cash flow of ₹3,483 Cr. Promoters own 52.63%, aligning interests. The Piotroski score of 8 and Altman Z of 14.26 underscore financial stability. But a wonderful business at a foolish price can still be a bad investment. Today's price of ₹2,522.50, with a P/E of 55.86, P/B of 12.36, and EV/EBITDA of 91.98, assumes a future that seems unsupported by recent performance. Sales grew just 1.22% and profit declined 8.73%. The latest quarter—₹8,867 Cr sales and ₹1,074 Cr profit—is decent, but not enough to justify such a premium. Graham would demand a margin of safety; here it's negative 453.7%. The Graham Number is ₹429.15 and DCF value ₹495.15, suggesting the price is about five to six times intrinsic worth. This is a fine company, but at this price, I'd wait. Patience is the investor's greatest ally. Let the price retreat closer to value before risking one rupee. In investing, a stalwart at a reasonable price beats a great company at an insane price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer