ASIAN PAINTS: Weak mix impact realization and margin (APNT IN, Mkt Cap USD36.4b, CMP INR3142, TP INR3150, Neutral) Results were well below estimates as realizations and gross margins were severely impacted, primarily led by product mix deterioration caused by (a) slower growth in high margin urban sales unlike the preceding couple of quarters and (b) the adverse impact of downtrading. The management guided that recovery in margins is expected to be gradual with majority of raw material (c...
The independent financial analyst theScreener just lowered the general evaluation of ASIAN PAINTS (IN), active in the Commodity Chemicals industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered defensive. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date March 15, 2022, the closing price was INR 2,987.15 and its targ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
(APNT IN, Mkt Cap USD40.6b, CMP INR3159, TP INR3070, 3% Downside, Neutral)(APNT IN, Mkt Cap USD40.6b, CMP INR3159, TP INR3070, 3% Downside, Neutral) - Despite sales being significantly affected in May’21 due to the nationwide lockdown, sales were able to rebound sharply in Jun’21, abetted by significant benefits on account of pent up demand. This led to a significant beat on sales, EBITDA, and PAT v/s our expectations, despite materially higher than expected gross and EBITDA margin pressure. -...
Indigo Paints (IP) is engaged in the business of manufacturing paints in India. It was the fifth largest company in the Indian decorative paint industry, in terms of revenue from operations in FY20 and was the fastest growing among the top five paint companies. Revenue from operations have grown at 41.9% CAGR over FY10-19 and 24.7% CAGR over FY18-20. Margins have been on an uptrend as well and hence, over FY18-20, gross profit grew at 36% CAGR, EBITDA at 87.8% and PATMI at 92.8%. The company ...
EM Equities At New Highs Despite Some Caution Signs We continue to believe the path of least resistance is higher for global equities. As a result, our outlook remains bullish and we suggest buying any dips. · Global Equities Remain Bullish. A weaker US dollar (DXY) has paved the way for new highs in a number of non-US global indexes, including for emerging markets (EEM-US) and developed international (VEA-US). As we like to say, new highs are not a sell signal. We believe that as lon...
Q3FY20 result highlights Consolidated sales grew by 3% yoy to Rs54.2bn (est:Rs55.2bn, Cons est: Rs 56.9bn), EBITDA increased by 7.7% yoy to Rs11.9bn (est:Rs11.6bn, Cons est: Rs11.7bn), PAT increased by 20% by Rs7.8bn (est:Rs7.7bn, Cons est: Rs 7.8bn) Standalone sales grew by 2.7%yoy to Rs46.6bn (est:Rs47.2bn), EBITDA increased by 8% yoy to Rs11.1bn (est:Rs10.9bn), PAT increased by 20% yoy by Rs7.6bn (est:Rs5.3bn) Standalone sales growth is indicative of ~10-11% volume growth (2yr/3yr CAGR –...
(APNT IN, Mkt Cap USD23.9b, CMP INR1778, TP INR1608, 10% Downside, Sell) ** APNT's ~-8% realization decline (on a base that had an already weak mix in 3QFY19) does not augur well for its sales growth beyond FY20, especially given the uncertain economic revival. While 4QFY20 should continue seeing YoY margin gains, there is uncertainty on further commodity price reduction in FY21/FY22, thereby tempering margin growth expectations. This means that EPS growth is likely to be in line with top line....
A director at Asian Paints Ltd bought 1,145,000 shares at 1,750.044INR and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two year...
Q2FY20 result highlights Cons. Rev. grew 9.4% yoy to ~Rs50.5bn (est: Rs52.0bn), EBITDA grew 13% yoy to ~Rs9.5bn (est: Rs9.8bn), PBT grew 13.1% yoy to ~Rs8.4bn (est: Rs8.2bn). PAT grew 67.1% yoy to ~Rs8.5bn (est: Rs7.2bn). All financials are comparable yoy as Ind-AS 116 impact has been accounted for in the base quarter, as well. Standalone rev. grew by 9.3% yoy at Rs42.8bn, EBITDA grew by 12% yoy at Rs8.7bn and PAT grew by 65% yoy to Rs7.9bn. Standalone rev growth was lower despite high doubl...
Q1FY20 result highlights Asian Paints (APNT) cons. Rev. grew by 17% yoy at Rs51bn (est: Rs48bn), EBITDA grew by 24% yoy at Rs11.5bn (est: Rs9bn), PAT grew by 18% yoy to Rs6.7bn (est: Rs5.7bn). Standalone rev. grew by 18% yoy at Rs44bn, EBITDA grew by 25% yoy at Rs10.9bn and PAT grew by 21% yoy to Rs6.5bn. All financials are comparable yoy as IndAS 116 impact has been accounted for in the base quarter as well. High double-digit volume growth in the decorative was led by a) aggressive channel ...
ASIAN PAINTS: Stellar results but outlook uncertain; valuations stretched (APNT IN, Mkt Cap USD20.6b, CMP INR1484, TP INR1230, 17% Downside, Sell) net sales increased 16.9% YoY to INR51.3b (our estimate: INR48.7b; consensus: INR48.9b), with calculated volume growth of ~16% (our estimate: 8%) in Domestic Decorative Paints business. EBITDA was up 24.4% YoY to INR11.6b (our estimate: INR8.5b; consensus: INR9.1b), while adj. PAT rose 17.9% YoY to INR6.7b (our estimate: INR5.2b; consensus: IN...
ANNUAL REPORT THREADBARE (ART) | ASIAN PAINTS: Rising capital intensity keeps return ratios subdued Asian Paints’ FY19 annual report highlighted continued pressure on its consol. RoCE (down 640bp from 28.8% in FY15 to 22.4% in FY19). This can primarily be attributed to rising capital intensity due to increased capex and the subdued operating performance. Standalone RoCE declined 880bp to 28.6% over the last five years, while subsidiaries’ RoCE was down to 4.1% from 7.1% in FY15. The rise in ...
Q4FY19 result highlights Asian Paints (APNT) consolidated revenues increased by 12% yoy at Rs50.1bn(est: Rs51.5bn), EBITDA decreased by 2% yoy at Rs8.2bn(est: Rs9.7bn), Reported PAT fell by 2% yoy to Rs4.9bn (est: Rs5.8bn). Standalone revenues increased by 12% yoy at Rs42bn,EBITDA decreased by 2% yoy at Rs7.7bn, PAT fell by 2% yoy to Rs4.8bn. Standalone revenue growth was driven by low double-digit volume growth in the decorative business. We believe, negative mix on account of higher growt...
Asian Paints: Uncertain growth outlook amid massive capex drives sharp EPS cut (APNT IN, Mkt Cap USD18.6b, CMP INR1356, TP INR1150, 15% Downside, Downgrade to Sell) Asian Paints' (APNT) consol. net sales grew 11.9% YoY to INR50.2b (our estimate: INR52.3b), with calculated volume growth of ~10% (our estimate: 13%) in Domestic Decorative Paints business. EBITDA declined 2% YoY to INR8.2b (our estimate: INR9.8b), while adj. PAT was down 1.7% YoY to INR4.9b (our estimate: INR5.8b). FY19 per...
Q3FY19 result highlights Asian Paints (APNT) consolidated revenues (net of excise duty) increased by 24% yoy at Rs53bn(est: Rs48.5bn), EBITDA increased by 17% yoy at Rs10.4bn(est: Rs9.7bn), Reported PAT increased by 14% yoy to Rs6.5bn (est: Rs6.2bn). Standalone revenues (net of excise duty) increased by 26% yoy at Rs45bn,EBITDA increased by 21% yoy at Rs9.86bn, Reported PAT increased by 19% yoy to Rs6.3bn. Standalone revenue growth was driven by high double-digit volume growth (~20%+ vs our...
Asian Paints: Strong performance; Maintain Neutral as valuations remain fair (APNT IN, Mkt Cap USD18.9b, CMP INR1407, TP INR1500, 7% Upside, Neutral) Asian Paints (APNT) showcased a strong 3QFY19 performance with consolidated net sales growing 24.3% YoY to INR52.9b (est. INR48.1b) with a calculated volume growth of ~21% (est. 11.5%) in the Domestic Decorative paints business. EBITDA grew by 17% YoY to INR10.4b (est. INR8.7b), and adjusted PAT grew 14.1% YoY to INR6.5b (est. INR5.5b). 9MF...
Q2FY19 result highlights Asian Paints (APNT) consolidated revenues (net of excise duty) increased by 8.8% yoy at Rs46.4bn(est: Rs48.3bn), EBITDA decreased by 2% yoy at Rs7.8bn(est: Rs9.1bn), Reported PAT decreased by 4% yoy to Rs5.06bn (est: Rs6.0bn). Standalone revenues (net of excise duty) increased by 8.7% yoy at Rs39.1bn,EBITDA increased by 1.0% yoy at Rs7.3bn, Reported PAT increased by 1.7% yoy to Rs4.8bn. Standalone revenue growth was driven by low double digit volume growth in the dec...
Q1FY19 result highlights Asian Paints (APNT) consolidated revenues (net of excise duty) increased by 15% yoy at Rs44bn(est: Rs44bn), EBITDA increased by 31% yoy at Rs8.7bn(est: Rs8.3bn), Reported PAT increased by 30% yoy to Rs5.6bn (est: Rs5.3bn). Standalone revenues (net of excise duty) increased by 15.7% yoy at Rs37bn,EBITDA increased by 38% yoy at Rs8.2bn, Reported PAT increased by 35% yoy to Rs5.4bn. Standalone revenue growth was driven by double digit volume growth (~12%) in the decorat...
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