Buy Asian paints @ rs.864.25 // Niyati pandya // 3rd feb 2016

[niyati pandya]

Asian paints

 

 

Asian Paints Limited is an Indian chemicals company headquartered in Mumbai, India. It manufactures paints for decorative and industrial use. Asian Paints is India's largest paint company and Asia's third largest paint company, with a turnover of Rs 140 billion. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings Limited, SCIB Paints and Taubmans.  Asian Paints has acquired 30% stake in Dutch Boy Philippines from Berger International Limited (BIL), an indirect subsidiary of Asian Paints. Asian Paints executed a conditional stock purchase agreement relating to the sale of 427,000 shares of Dutch Boy Philippines, which ceases to be an associated company of BIL. Asian Paints, Ltd. (APL) has entered into a 50:50 new joint venture agreement with PPG Industries, Inc. (PPG), a US-based provider of paints, coatings and speciality products, to accelerate the growth of non-decorative coatings business in India.

	Analysis
1	The CAGR for 5 years is 19.78% this is significantly higher than the GDP 7.5%.
2	The Raw materials are constant for the past 5 years.
3	OPM (%) is also constant for the past 5 years.
4	On the capital based on 96 crores, they have generated reserves of 4,130 crores
5	Gross block has ↑ because of purchase of assets. Net block has↓ this is due to ↑ in depreciation.
6	↑ in depreciation may be due to change in depreciation method or increased in fixed assets
7	ROI(OB) is 9.15%