Asian Paints Q2 earnings beat estimates.
Asian Paints reported better performance than expected in the quarter ended September 2020.
Its Consolidated net profit grew by 1.2 percent year-on-year to Rs 851.9 crore, hit by higher tax cost.
However revenue increased 5.9 percent YoY to Rs 5,350.2 crore in July-September period 2020.
The company also declared an "interim dividend" of Rs 3.35 per equity share for the Financial Year ending 31st March 2021.
"Profitability across businesses was well supported by a better product mix, the stable raw material prices, favourable foreign exchange rate and the large number of cost optimisation measures put in place by the Management," Amit Syngle, Managing Director and CEO, said.
Begining
- During the World War II and Quit India Movement in 1942, a temporary ban on import of paint gave an idea to a 26-year-old Indian, Champaklal H Choksey, and his friends Chimanlal N Choksi, Suryakant C Dani and Arvind R Vakil to start a manufacturing paint at home.
- Today Asian Paints Market Cap is USD15billion.
- Its product portfolio comprises paints, water proofing material, wall coverings and adhesives.
Asian Paints Stock - Past 1 year
Asian Paints Stock - Past 5 years
Consistent Returns
A careful look at the stock price chart indicates that the stock has consistently provided returns for its shareholders.
According to CNBC tV -18 report Asian Paints has provided positive return to its shareholders for all the years for last 10 years i.e. 2010 to 2020.
Leadership Position
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.
International Presence
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.
(Disclaimer : This blog is for education purposes only. It is not to solicit any business or provide any kind of advise and recommendation. I am an investor in this stock and hence my views may be biased. Please take an informed and well considered decision.)
