⬆ Asian Paints Limited.
CMP: ₹2,273
✅ About Company
Asian Paints Limited, a leading player in India’s paint industry, has demonstrated consistent financial performance in recent years. Below is an analysis of its key financial metrics and shareholder structure:
✅ Financial Performance :
Revenue Growth: In the fiscal year 2023-24 (FY24), Asian Paints reported an 18.5% increase in operating income compared to the previous year.
✅ Profit Margins:
Operating Profit Margin: Improved to 22.8% in FY24 from 18.3% in FY23.
✅ Net Profit Margin: Increased to 17.2% in FY24 from 12.2% in FY23.
Debt Position: The company maintained a debt-to-equity ratio of 0.0 in FY24, indicating a debt-free status.
✅ Key Financial Highlights (FY 2023-24)
> Revenue: ₹34,500 crore
> Net Profit: ₹5,300 crore
> EBITDA Margin: 19.5%
> Earnings Per Share (EPS): ₹56.20
> Debt-to-Equity Ratio: 0.12 (reflecting a healthy balance sheet)
Liquidity Ratios :
Current Ratio : Stood at 2.34 in FY24, slightly down from 2.38 in FY23.
Quick Ratio : Improved to 1.52 in FY24 from 1.47 in FY23.
✅ Inventory Management: The inventory turnover ratio decreased to 2.58 in FY24 from 2.79 in FY23, suggesting a slower movement of inventory.
✅ Shareholding Pattern (As of Latest Quarter)
* Promoters: 52.63%
* Foreign Institutional Investors (FIIs): 19.46%
* Domestic Institutional Investors (DIIs): 9.87%
* Retail Investors & Others: 18.04%
✅ Major Shareholders:
* Geetanjali Trading & Investments Pvt Ltd.: Holds 16.27% of the shares.
* Life Insurance Corporation of India (Investment Portfolio): Owns 7.01% of the shares.
* Siddhant Commercials Pvt Ltd.: Holds 4.899% of the shares.
* Elcid Investments Ltd.: Owns 2.952% of the shares.
* Shubhit Holdings Pvt Ltd.: Holds 2.414% of the shares.
✅ Recent Developments:
In the second quarter ending September 30, 2024, Asian Paints reported a net income of ₹6,946.4 million, a decline from ₹12,054.2 million in the same period the previous year. Revenue also decreased to ₹82,010.9 million from ₹86,437.7 million year-over-year.
This decline is attributed to factors such as price reductions and adverse weather conditions affecting sales volumes.
✅ Conclusion:
Despite recent challenges, Asian Paints maintains a robust financial position with strong profit margins and a debt-free balance sheet. The company’s substantial promoter holdings and consistent dividend payouts reflect confidence in its long-term prospects. However, recent declines in revenue and net income highlight the need for strategic initiatives to address market challenges and sustain growth.
✅ Content creation by : Vina SEBI Registered RA: INH000017189
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