Asian Paints Ltd. (ASIANPAINT) AI Stock Analysis

• Market Cap: ₹2.39T
• Dividend Yield: 0.87%
• Average Volume (3M): 29.62K
• Price to Earnings (P/E): 66.3
• Beta (1Y): 0.85
• Revenue Growth: -1.30%
• EPS Growth: -14.72%
• Country: IN
• Employees: 9,482
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals - Specialty
• EPS (TTM): 10.36
• Shares Outstanding: 959,197,750
• 10 Day Avg. Volume: 34,279
• 30 Day Avg. Volume: 29,620
• PEG Ratio: -1.84
• Price to Book (P/B): 11.45
• Price to Sales (P/S): 6.56
• P/FCF Ratio: 85.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,625.67
• Price Target Upside: -8.62% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹2,959.00 ▲(2.98% Upside)

Asian Paints Ltd. demonstrates strong financial performance with a robust balance sheet and consistent profitability, which is the most significant factor in its score. Technical analysis indicates bullish momentum but warns of overbought conditions. The high P/E ratio suggests potential overvaluation, which impacts the overall score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage ensures financial stability and provides the company with the flexibility to invest in growth opportunities.

Robust Profit Margins

High profit margins indicate efficient operations and cost management, enhancing the company's ability to generate sustainable profits over time.

Positive Free Cash Flow

Positive free cash flow supports reinvestment in the business, enabling growth and providing a buffer against economic downturns.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can indicate challenges in maintaining market share or pricing power, potentially impacting long-term competitiveness.

Decreasing Operating Cash Flow

Decreasing operating cash flow may signal inefficiencies or increased costs, which could affect the company's ability to fund operations and growth.

Earnings Decline

A significant decline in earnings per share growth suggests potential issues in profitability, which could impact investor confidence and future investments.

Asian Paints Ltd. Business Overview & Revenue Model

Company Description

Asian Paints Limited, together with its subsidiaries, manufactures, sells, and distributes paints and coatings for decorative and industrial use in India and internationally. It operates in Paints and Home Improvement segments. The company offers decorative coatings for interior and exterior walls, metal finishes, and wood finishes; paints; wall coverings; textures painting aid; waterproofing; wall stickers; mechanised tools; adhesives; modular kitchens; wardrobes; bath fittings and sanitaryware; home décor products; sanitizers and surface disinfectants; furniture, furnishings; and lightings, as well as enamels and thinners. The company offers its products under the Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans, and Kadisco Asian Paints through a network of dealers and retail stores, as well as operates asianpaints.com, an online shop. Asian Paints Limited was founded in 1942 and is headquartered in Mumbai, India.

How the Company Makes Money

Asian Paints generates revenue primarily through the sale of its wide array of paint products, which includes decorative paints, industrial coatings, and allied products. The company has established a robust distribution network that enables it to reach a large customer base across urban and rural areas. Key revenue streams include retail sales through a vast network of dealers, direct sales to contractors and builders, and exports to international markets. Additionally, Asian Paints has formed strategic partnerships with various home improvement and construction companies, enhancing its market presence and driving sales. The company's focus on innovation and product development, along with effective marketing strategies, further contributes to its earnings.

Asian Paints Ltd. Financial Statement Overview

Summary

Asian Paints Ltd. exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is robust with low leverage, and cash flow management shows positive trends despite recent declines in revenue and operating cash flow.

Income Statement

Asian Paints Ltd. has demonstrated strong growth and profitability in its income statement. The company has shown consistent revenue growth, with a notable increase from 2020 to 2024. The gross profit margin and net profit margin are robust, indicating effective cost management and profitability. However, there was a decline in revenue and profitability from 2024 to 2025, which slightly impacts the overall strength of the income statement.

Balance Sheet

Asian Paints Ltd. maintains a solid balance sheet with a healthy equity ratio and manageable debt levels. The debt-to-equity ratio is low, reflecting financial stability and low leverage. The company's return on equity is strong, showcasing effective use of equity to generate profits. The growth in stockholders' equity over the years underscores the company's financial stability and capability to sustain operations.

Cash Flow

The company's cash flow statement indicates strong operating cash flows and a positive free cash flow trajectory. Despite a decrease in operating cash flow from 2024 to 2025, the company's free cash flow remains positive, allowing for reinvestment and financial flexibility. The operating and free cash flow to net income ratios are healthy, though there is room for improvement in cash flow management to ensure more consistent growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	338.41B	338.59B	354.38B	344.30B	289.82B	215.04B
Gross Profit	141.63B	141.50B	151.76B	131.12B	105.48B	92.99B
EBITDA	55.06B	56.04B	72.33B	60.20B	45.39B	46.13B
Net Income	35.97B	36.67B	54.60B	41.06B	30.31B	31.39B
Balance Sheet
Total Assets	0.00	303.71B	299.24B	257.98B	229.84B	203.70B
Cash, Cash Equivalents and Short-Term Investments	46.92B	46.88B	54.26B	46.31B	40.25B	47.61B
Total Debt	0.00	22.90B	24.74B	19.33B	15.87B	10.93B
Total Liabilities	-200.59B	103.12B	105.00B	93.52B	87.85B	71.40B
Stockholders Equity	200.59B	194.00B	187.28B	159.92B	138.12B	128.06B
Cash Flow
Free Cash Flow	0.00	25.94B	36.08B	27.48B	4.36B	33.95B
Operating Cash Flow	0.00	44.24B	61.04B	41.93B	9.86B	36.83B
Investing Cash Flow	0.00	-8.74B	-25.18B	-12.75B	-3.22B	-5.48B
Financing Cash Flow	0.00	-37.53B	-29.82B	-21.40B	-18.08B	-6.50B

Asian Paints Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2873.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASIANPAINT, the sentiment is Positive. The current price of 2873.4 is above the 20-day moving average (MA) of 2767.67, above the 50-day MA of 2559.96, and above the 200-day MA of 2401.28, indicating a bullish trend. The MACD of 100.05 indicates Positive momentum. The RSI at 73.98 is Negative, neither overbought nor oversold. The STOCH value of 33.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ASIANPAINT.

Asian Paints Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MARICO	69 Neutral	₹931.20B	55.66	―	1.46%	22.56%	4.73%
PIDILITIND	68 Neutral	₹1.48T	66.49	―	0.34%	9.13%	16.39%
HAVELLS	66 Neutral	₹932.25B	63.70	―	0.69%	7.26%	3.66%
DABUR	66 Neutral	₹917.00B	50.67	―	1.55%	2.68%	1.07%
ASIANPAINT	63 Neutral	₹2.39T	66.28	―	0.87%	-1.30%	-14.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GODREJCP	59 Neutral	₹1.19T	65.39	―	1.75%	5.77%	―

Asian Paints Ltd. Corporate Events

Asian Paints Releases Investor Conference Audio Recording

Asian Paints Ltd. has announced that the audio recording of its recent Investor Conference, which discussed the company’s business and financial performance for the quarter and half-year ending September 30, 2025, is now available on its website. This move is part of the company’s commitment to transparency and keeping stakeholders informed about its operations and financial health.

Asian Paints Begins Production at UAE White Cement Facility

Asian Paints Ltd. has announced that its subsidiary, Asian White Inc. FZE, has commenced commercial production at its manufacturing facility in Fujairah, UAE. This development is part of the company’s strategic initiative to enter the white cement market, with an initial production capacity of 265,000 tons per annum. The move is expected to enhance the company’s product offerings and strengthen its position in the international market, potentially impacting stakeholders by expanding its operational footprint and market reach.