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Asian Paints Ltd

NSE: ASIANPAINT BSE: 500820

2417.40

(0.68)%

Mon, 09 Feb 2026, 11:22 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.6x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
  • Dividends per share have been stable in the past 10 years.
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Cons

  • Asian Paints's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Asian Paints's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Asian Paints is expected to increase by more than 50% in 2 years time.
  • Asian Paints's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Asian Paints's earnings are expected to exceed the low risk growth rate next year.
  • Asian Paints is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Chemicals industry average.
  • An improvement in Asian Paints's performance (ROE) is expected over the next 3 years.
  • Asian Paints's revenue growth is expected to exceed the India market average.
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Cons

  • Asian Paints's earnings are expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).
  • Asian Paints's earnings growth is positive but not above the India market average.
  • Asian Paints's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Asian Paints's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Asian Paints's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Asian Paints is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Asian Paints is profitable, therefore cash runway is not a concern.
  • Asian Paints is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (795.2%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 25.8x debt.
  • Asian Paints's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (6.2% vs 3% today).
  • Asian Paints earns more interest than it pays, coverage of interest payments is not a concern.
  • Asian Paints's level of debt (3%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Asian Paints board of directors is about average.
  • Amit's remuneration is lower than average for companies of similar size in India.
  • Amit's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

    past

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    Pros

    • Asian Paints's 1-year earnings growth exceeds its 5-year average (25.5% vs 11.1%)
    • Asian Paints's year on year earnings growth rate has been positive over the past 5 years.
    • Asian Paints used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
    • Asian Paints has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
    • Asian Paints's earnings growth has exceeded the IN Chemicals industry average in the past year (25.5% vs 9.1%).
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    Cons

    • Asian Paints's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

    value

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    Pros

    • 500820 outperformed the Chemicals industry which returned 2.2% over the past year.
    • 500820 outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Asian Paints's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Asian Paints's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Asian Paints is overvalued based on assets compared to the IN Chemicals industry average.
    • Asian Paints is poor value based on expected growth next year.
    • Asian Paints is overvalued based on earnings compared to the IN Chemicals industry average.
    • Asian Paints is overvalued based on earnings compared to the India market.
    • BSE:500820 is up 4.3% underperforming the Chemicals industry which returned 6.9% over the past month.
    • BSE:500820 is up 4.3% underperforming the market in India which returned 8% over the past month.

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