Asian Paints (ASIANPAINT)

FairStock Score: 59/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor, so I start with the business, not the ticker. Asian Paints looks like a high-quality paint franchise: ROE 19.97%, ROCE 25.72%, debt/equity only 0.18, Piotroski F-Score 8/9, and Altman Z-Score 14.26. Those are not distressed numbers; they suggest a durable moat, conservative balance sheet, and cash generation. Free cash flow is ₹3,483 Cr, latest quarter sales ₹8,867 Cr and net profit ₹1,074 Cr, while five-year revenue CAGR is 10.38%. Recent growth is stronger—sales up 17.90%, profit up 39.90%—so operationally the company is doing well. Promoter holding of 52.63% also aligns interests. But Graham would slam the price: P/E 54.35, P/B 12.10, EV/EBITDA 91.98, dividend yield only 1.02%. Book value is ₹222.81, Graham Number only ₹429.15, DCF intrinsic value ₹495.15. At ₹2,696.30, margin of safety is -453.70%, meaning I am paying many times conservative intrinsic value. The market cap is ₹2.58 lakh Cr, so optimism is already embedded. I love the quality, but I do not love the valuation. A wonderful company can be a poor investment if bought too dear. For an Indian retail investor, this is a hold-or-watch, not a bargain. I would wait for a much wider margin of safety, or for earnings to catch up with the price. The business earns high returns on capital with low debt; the stock price demands flawless execution. That is the tension.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer