Asian Paints share value: Promote Asian Paints, goal value Rs 2550: HDFC Securities
Asian Paints Ltd., integrated within the 12 months 1945, is a Massive Cap firm (having a market cap of Rs 255755.70 Crore) working in Constructing Supplies sector.
Asian Paints Ltd. key Merchandise/Income Segments embody Paints, Enamels, Varnishes & Black, Different Working Income and Sale of providers for the 12 months ending 31-Mar-2022.
Financials
For the quarter ended 31-03-2022, the corporate reported a Consolidated Complete Earnings of Rs 7973.06 Crore, down -7.28 % from final quarter Complete Earnings of Rs 8599.05 Crore and up 18.53 % from final 12 months similar quarter Complete Earnings of Rs 6726.84 Crore. Firm reported web revenue after tax of Rs 865.12 Crore in newest quarter.
Funding Rationale
Asian Paints’ (APNT) This autumn efficiency was broadly in line. Gross sales development, at 18.7% (three 12 months CAGR: 17%), marginally exceeded expectations (+3% vs HSIE). Ornamental enterprise clocked 8/21% quantity/worth development (FY19-22 quantity/worth CAGR: 18/15% resp). Progress was all-round (throughout tiers and value factors). Adjacencies proceed to carry out nicely. GM recoup is nicely underway however falls wanting expectations (38.7% vs HSIE: 40.7%). Future value hikes are on the anvil however are more likely to lag RM inflation, as demand elasticity from hereon might get examined. The brokerage marginally tones down FY23/24 EPS estimates by 3.6/2% to account for decrease GM and preserve SELL on APNT with a DCF-based TP of INR 2,550/sh (unchanged), implying 53x FY24 P/E.
Promoter/FII Holdings
Promoters held 52.63 per cent stake within the firm as of 31-Mar-2022, whereas FIIs owned 19.45 per cent, DIIs 7.58 per cent.
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