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Asian Paints Ltd.
(ASIANPAINT)
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Rating:62Neutral
Price Target:
₹2,454.00
▼(-13.75% Downside)
Action:Downgraded
Date:08/30/26
The score is supported primarily by strong financial resilience (low leverage and generally solid cash generation, with a sharp FY2026 FCF rebound). Offsetting this, technicals are currently bearish (below key moving averages with negative MACD), and valuation is stretched (high P/E with only a modest dividend yield), which together keep the overall score in the low-60s.
Positive Factors
Conservative balance sheet
Persistently low leverage gives Asian Paints financial flexibility to fund operations, absorb demand variability, and pursue investments without excessive debt pressure. Steady growth in equity and assets also indicates balance-sheet compounding, supporting resilience over the next several quarters.
Negative Factors
Margin compression
The substantial margin decline indicates that recent earnings have been less resilient, potentially reflecting weaker pricing and/or cost pressure as stated in the financial review. If profitability does not recover, lower conversion of revenue into profit could constrain reinvestment and returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Persistently low leverage gives Asian Paints financial flexibility to fund operations, absorb demand variability, and pursue investments without excessive debt pressure. Steady growth in equity and assets also indicates balance-sheet compounding, supporting resilience over the next several quarters.
Read all positive factors
Asian Paints Ltd. (ASIANPAINT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.22T
Dividend Yield1.19%
Average Volume (3M)42.12K
Price to Earnings (P/E)46.0
Beta (1Y)0.83
Revenue Growth12.37%
EPS Growth24.22%
CountryIN
Employees11,162
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)49.71
Shares Outstanding959,197,750
10 Day Avg. Volume35,287
30 Day Avg. Volume42,117
Financial Highlights & Ratios
PEG Ratio2.75
Price to Book (P/B)9.98
Price to Sales (P/S)6.01
P/FCF Ratio38.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹2,302.00Price Target Upside-19.09% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)53.88
Revenue Forecast (FY)₹414.43B
Asian Paints Ltd. Business Overview & Revenue Model
Company Description
Asian Paints Limited, along with its subsidiaries, specializes in the production, sale, and distribution of a diverse range of paints and coatings. These offerings cater to both decorative and industrial applications, serving markets across India ...
How the Company Makes Money
Asian Paints primarily makes money by selling paints and coatings products, with revenue largely driven by volume and value growth in its paints portfolio. Its key revenue streams include: (1) Decorative paints and associated products sold mainly ...
Asian Paints Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 371.31B | 355.16B | 338.59B | 354.38B | 344.30B | 289.82B |
| Gross Profit | 153.03B | 155.15B | 141.50B | 151.76B | 131.12B | 105.48B |
| EBITDA | 79.56B | 74.28B | 60.06B | 75.95B | 63.21B | 48.04B |
| Net Income | 47.65B | 43.25B | 36.67B | 54.60B | 41.06B | 30.31B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 345.34B | 303.71B | 299.24B | 257.98B | 229.84B |
| Cash, Cash Equivalents and Short-Term Investments | 86.02B | 91.82B | 46.88B | 54.26B | 46.31B | 40.25B |
| Total Debt | 0.00 | 39.29B | 22.90B | 24.74B | 19.33B | 15.87B |
| Total Liabilities | -220.15B | 125.20B | 103.12B | 105.00B | 93.52B | 87.85B |
| Stockholders Equity | 220.15B | 213.72B | 194.00B | 187.28B | 159.92B | 138.12B |
Cash Flow | ||||||
| Free Cash Flow | 27.74B | 56.01B | 25.94B | 36.08B | 27.48B | 4.36B |
| Operating Cash Flow | 34.82B | 70.88B | 44.24B | 61.04B | 41.93B | 9.86B |
| Investing Cash Flow | -448.30M | -13.34B | -8.74B | -25.18B | -12.75B | -3.22B |
| Financing Cash Flow | -18.86B | -23.77B | -37.53B | -29.82B | -21.40B | -18.08B |
Asian Paints Ltd. Technical Analysis
Negative
2845.20
Price Trends
2440.32
Negative
2571.35
Negative
2508.98
Negative
Market Momentum
-41.09
Negative
40.77
Neutral
53.57
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 2845.2 is above the 20-day moving average (MA) of 2336.56, above the 50-day MA of 2440.32, and above the 200-day MA of 2508.98, indicating a bearish trend. The MACD of -41.09 indicates Negative momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 53.57 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹47.64B | 29.54 | ― | 0.50% | 9.51% | 13.64% | |
70 Outperform | ₹142.72B | 23.76 | ― | 1.42% | 5.24% | -47.04% | |
67 Neutral | ₹542.25B | 44.55 | ― | 0.86% | 5.22% | 6.57% | |
62 Neutral | ₹2.22T | 45.96 | ― | 1.19% | 12.37% | 24.22% | |
62 Neutral | ₹120.04B | 6.74 | ― | 9.63% | -11.34% | 383.49% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | ₹6.66B | -9.59 | ― | 1.75% | -10.48% | 0.50% |
* General Sector Average
IN:ASIANPAINT
Asian Paints Ltd.
2,315.00
-169.54
-6.82%
IN:AKZOINDIA
Akzo Nobel India Limited
263.60
-55.08
-17.29%
IN:BERGEPAINT
Berger Paints India Limited
465.05
-74.92
-13.88%
IN:INDIGOPNTS
Indigo Paints Ltd
998.10
2.38
0.24%
IN:KANSAINER
Kansai Nerolac Paints Limited
176.45
-68.78
-28.05%
IN:SHALPAINTS
Shalimar Paints Ltd
79.50
1.52
1.95%
Asian Paints Ltd. Corporate Events
Asian Paints Confirms SEBI Compliance on Dematerialised Securities for Q2 FY2026-27
Oct 15, 2026
Asian Paints has disclosed that its registrar and share transfer agent, MUFG Intime India Private Limited, has certified the company’s compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the qua...
Asian Paints Starts Commercial VAE Production at Dahej Backward Integration Plant
Sep 17, 2026
Asian Paints has begun commercial production of Vinyl Acetate Ethylene Emulsion at its new facility in Dahej, Gujarat, with an installed capacity of 150,000 tons per year. The output is primarily earmarked for captive use at its paint manufacturin...
Asian Paints Shareholders Clear Appointment of New Non-Executive Director via E-Voting
Sep 9, 2026
Asian Paints Ltd. has announced the outcome of a postal ballot conducted entirely through remote e-voting, in line with the Companies Act and SEBI listing regulations. The process sought shareholder approval for a single ordinary resolution relati...
Asian Paints Shareholders Clear Appointment of Promoter-Group Director
Sep 9, 2026
Asian Paints Ltd. is a leading Indian paints and coatings manufacturer, supplying decorative and industrial paints, coatings and related products to domestic and international markets. The company operates with a strong promoter group presence and...
Asian Paints shareholders clear appointment of promoter-group director
Sep 9, 2026
Asian Paints has received shareholder approval via a remote e-voting postal ballot for the appointment of Ms. Shubhlakshmi Dani as a Non-Executive Director, with the ordinary resolution deemed passed on 9 September 2026. Her appointment, following...
Asian Paints executive files pre-approved trading plan for January 2027 share sale
Sep 9, 2026
Asian Paints Limited has disclosed that a designated person, Subrahmanya Shreepathi, General Manager – Technology, Research Technology, has adopted a trading plan under the SEBI (Prohibition of Insider Trading) Regulations, 2015 and the com...
Asian Paints Audit Panel Clears Bona Fide Non-Execution of Promoter Trading Plan Tranche
Aug 21, 2026
Asian Paints Limited has disclosed to the stock exchanges that a trading plan submitted by Geetanjali Trading and Investments Private Limited, a promoter group entity and designated person, was only partially implemented. The plan involved purchas...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.