Asian Paints Ltd. (ASIANPAINT) AI Stock Analysis

• Market Cap: ₹2.26T
• Dividend Yield: 1.05%
• Average Volume (3M): 61.52K
• Price to Earnings (P/E): 62.9
• Beta (1Y): 0.85
• Revenue Growth: -3.99%
• EPS Growth: -29.17%
• Country: IN
• Employees: 9,482
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals - Specialty
• EPS (TTM): 11.47
• Shares Outstanding: 959,197,750
• 10 Day Avg. Volume: 35,480
• 30 Day Avg. Volume: 61,525
• PEG Ratio: -1.84
• Price to Book (P/B): 11.45
• Price to Sales (P/S): 6.57
• 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: ₹2,468.44
• Price Target Upside: 4.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 58 Neutral
• Price Target: ₹2,499.00 ▲(6.15% Upside)

Asian Paints Ltd. has a strong financial foundation, but technical indicators and valuation metrics suggest caution. The stock is currently experiencing bearish momentum, and its high P/E ratio indicates potential overvaluation. Investors should monitor financial performance closely, particularly recent declines in revenue and cash flow.

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 Ltd. generates revenue primarily through the sale of its decorative and industrial paint products. The decorative segment, which includes products like interior and exterior paints, accounts for the majority of the company's revenue. The company also earns money from its industrial coatings, which are supplied to various industries, including automotive and general industrial sectors. Asian Paints capitalizes on its extensive distribution network, comprising dealers, retail stores, and service centers, to reach a wide customer base. Additionally, the company has ventured into home improvement and décor products, expanding its revenue streams. Strategic partnerships and innovation in product offerings further bolster its financial performance.

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 flows are positive despite recent declines. Attention to recent revenue and cash flow declines is crucial for future growth.

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	337.79B	337.97B	354.38B	343.68B	289.41B	215.03B
Gross Profit	142.94B	142.82B	152.92B	131.42B	105.64B	93.46B
EBITDA	65.17B	63.56B	82.70B	65.96B	50.67B	51.50B
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: Negative
• Last Price: 2354.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASIANPAINT, the sentiment is Negative. The current price of 2354.3 is below the 20-day moving average (MA) of 2442.60, below the 50-day MA of 2473.71, and above the 200-day MA of 2339.79, indicating a neutral trend. The MACD of -43.00 indicates Positive momentum. The RSI at 33.02 is Neutral, neither overbought nor oversold. The STOCH value of 21.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ASIANPAINT.

Asian Paints Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAVELLS	66 Neutral	₹939.62B	66.10	―	0.67%	9.53%	1.43%
GODREJCP	66 Neutral	₹1.17T	63.41	―	1.74%	5.12%	―
MARICO	66 Neutral	₹928.80B	55.13	―	1.47%	16.58%	9.72%
PIDILITIND	64 Neutral	₹1.52T	69.44	―	0.34%	7.96%	19.33%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ASIANPAINT	58 Neutral	₹2.26T	62.86	―	1.05%	-3.99%	-29.17%
DABUR	58 Neutral	₹879.84B	49.36	―	1.61%	-0.03%	-5.22%

Asian Paints Ltd. Corporate Events

Asian Paints Extends Joint Venture with PPG Group for 15 Years

Asian Paints Ltd. has announced the extension of its joint venture agreements with the PPG Group, USA, for an additional 15 years. This renewal allows the joint ventures, PPG Asian Paints Private Limited and Asian Paints PPG Private Limited, to continue serving various sectors with advanced coating solutions. The extension does not alter the management or control of the companies, ensuring stability for stakeholders.

Asian Paints Renews Joint Venture with PPG Group for 15 Years

Asian Paints Limited has announced the renewal of its joint venture agreements with PPG Group, USA, extending their partnership for another 15 years. This renewal allows their joint ventures, PPG Asian Paints Private Limited and Asian Paints PPG Private Limited, to continue serving various sectors with industry-leading solutions. The renewal does not materially impact the company’s management or control, maintaining the existing shareholding and management structure.