Asian Paints (ASIANPAINT)
STALWARTFairStock Score: 46/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,522.5 |
| Market Cap | ₹2,27,924.58 Cr |
| P/E Ratio | 55.86 |
| ROCE | 25.72% |
| ROE | 19.97% |
| Dividend Yield | 1.04% |
| Profit Growth | -8.73% |
| Debt/Equity | 0.18 |
| Sales Growth | 1.22% |
| Free Cash Flow | ₹3,48,300 Cr |
| Promoter Holding | 52.63% |
| 52-Week Range | ₹2,115 — ₹2,985.7 |
| Sector | Consumer Durables |
| Book Value | ₹204.12 |
Strengths
- Market leadership in India's paint industry with dominant brand presence
- Strong operational efficiency with ROCE of 25.7% indicating excellent capital utilization
- Consistent earnings track record and established distribution network across urban and rural markets
Concerns
- Elevated P/E ratio of 55.9 appears expensive compared to historical valuations
- Decelerating growth with profit growth at 5.5% and sales growth at 3.7%
- Weak DhanIQ Score of 3/10 indicates poor near-term momentum
AI Analysis
Asian Paints is a Stalwart company — India's undisputed paint market leader with a commanding presence built over decades. With a market capitalization of Rs 2.3 lakh crores, this company has established itself as a household name across the country. However, the current data indicates some challenging dynamics that investors may consider carefully. The company trades at a P/E ratio of 55.9, which appears significantly elevated compared to historical norms and suggests the market has high expectations built into the current price of Rs 2,400. While Asian Paints maintains strong operational efficiency with an impressive ROCE of 25.7%, indicating excellent capital allocation, the growth trajectory shows concerning signs. Profit growth has moderated to 5.5% while sales growth stands at a modest 3.7%, reflecting the broader slowdown in India's paint industry. The DhanIQ Score of 3 out of 10 signals weak momentum in the near term. Analysis suggests that despite the company's market leadership and consistent earnings history, the combination of premium valuation and decelerating growth creates a complex investment scenario. The modest dividend yield of 1.0% provides limited income support. Investors may consider monitoring whether the company can accelerate growth through new product categories, rural expansion, or market share gains to justify its premium valuation.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer