Asian Paints – Q3FY20 – Net Profit of Rs. 764 Crore – Quarterly Results
Indian multinational company Asian Paints has been serving its business in the Paints Industry – Manufacturing, Selling and Distribution of Paints, Coatings, Decorative Products and other related services.
Asian Paints had a 54 Percent Market Share in the Indian Paints Industry. It is the Premier Paint Company in India and the third largest in its sector in Asia. The Company was established in the year of 1942, which the Market Capitalization stands at Rs. 1.71 Lakh Crore.
Currently, the Price to Earning ratio stood at 63 and the Book value is around Rs. 105. Debt to Equity ratio is 0.03, where the Debt of Rs. 312 Crore for this Paint Company. The Interest Coverage Ratio(ICR) is good at 36 Times which is good on Fundamentals.
The Promoters holding of 53 Percent in this stock, where the Promoters Pledging of Shares were 13 Percent. Currently, the Market Price of this stock is trading at 17 Times of its Book value.
From the Q3FY20 – Quarterly results, the Company’s revenue is said to be Rs. 5,420 Crore and the expenses were Rs. 4,231 Crore. The other income was Rs. 89 Crore in the third quarterly results. The Company reported a Net profit of Rs. 764 Crore in Q3FY20 session.
The Profit growth of Q3FY20 was 20 Percent higher than the Q3FY19 earnings. For the December 2019, the EPS stands at 7.97 in the consolidated earnings.
In the end of 2018-19 Fiscal year, the company reported a revenue of Rs. 19,342 Crore and the Net Profit was Rs. 2,159 Crore. It is noteworthy that the stock price has gone up by 30 Percent in the last one year. Over the Past Ten years, the stock’s price has risen by about 26 Percent excluding Bonus Issues, Dividend Payments and Face Value Split.
The Company’s Compounded Sales growth has grown by 10 Percent in the past Five years and 14 Percent in the past Ten years period. The Profit Growth has also increased by 12 Percent in the past five years and 18.50 Percent in the previous ten years period.
Currently the Return on Equity is around 24 Percent and the Return on Capital Employed(ROCE) is 35 Percent. The Reserves of Rs. 9,975 Crore was said in the Balance Sheet of Asian Paints as per report of September 2019.
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