Asian Paints retains leadership position in "decorative paints" which is retail end of the paints market.
Decorative paints in itself is about 80% of the total paints market in India. Major segments in decoratives include exterior wall paints, interior wall paints, wood finishes and enamel and ancillary products such as primers, putties etc
70% of the decorative paints market in India is of the organised sector. 30% is unorganised sector.
Decorative paints in itself is about 80% of the total paints market in India. Major segments in decoratives include exterior wall paints, interior wall paints, wood finishes and enamel and ancillary products such as primers, putties etc
70% of the decorative paints market in India is of the organised sector. 30% is unorganised sector.
Asian Paints continues to be the market leader in the organised segment. It has around 55% of the marketshare in the organised decorative paints market.
In the Financial Year 2018-19 the company changed its strategy with more focus on premium paints as well as as allied segments such as waterproofing, adhesives and home decor and improvement.
This change in strategy is expected to bring good results in the Financial Year 2019-2020.
Also the company started new plants in the Financial Year 2018-19. These plants took some time to stabilise and reach optimum production levels.
The profits of the company remained stagnant in the last Quarter of Financial Year 2018-19 - primarily due to higher depreciation and lower EBIDTA.
This is expected to change favorably in the coming years.
As it is Asian Paints continues to dominate the market in India and is also present in another 22 countries in the world. With its dominant presence for many decades in India - it continues to enjoy favourable pricing for its products.
Asian Paints is a Multibagger stock.
ASIAN PAINTS is 2.5 times in last 5 years.
(Source : www.nseindia.com)
ASIAN PAINTS is 61 times in past 17 years.
(Source : www.nseindia.com)
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