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Oct 21, 2010

Asian Paints - 500820

 

 

 

Name of Company

Asian Paints

BSE Code

500820

NSE Code

ASIANPAINT

ICICI Code

Established

My Take

Like

Headquarters

Mumbai

Promoters

Story

Largest paint company in India. One of the largest in the world. Operations in 17 countries. Subsidiaries include Berger International (SE Asia, Caribbean and Middle east), SCIB Paints – Egypt, Apco coatings,  Taubmans.

Sector

Paints

Sub-sector

Website

http://www.asianpaints.com/

Positives

Regular dividend (assuming Rs. 15) expected dividend yield is 0.5%. Zero debt company(around 72 Cr for a 774 Cr profit). 50% promoter holding. Huge institutional holding as well. From 2300 Cr to 5100 Cr revenue increase from FY06 to FY10. Profit has grown from 186 Cr to 774 Cr. Regularly profitable company. NPMs have been between 8-10% except for FY10 when it was 15%. 1461 Cr reserves in FY10.

Negatives

High PE's.

Peers

News

Price @ blogged

2603.40 (20-Oct-10)

Cost of company

25K Cr for a FY10 profit of 774 Cr, which translates to 34 times.

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