Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Fundamental Reasons:-
Asian Paints is an India based global paints & decorative pigments giant having its dominance in the field of all
forms of pigments coating having the vast usages in ancillaries, Automotive, decorative & Industrial arena. Company
was incorporated seven decades before and since then, company has penetrated deep into the various vital aspects of
paints & coating industry of India. Growing in leaps & bounds, from a very humble beginning, Asian Paints becomes
the 10th largest decorative paint company in the world. Asian Paints is more than twice the size of its nearest
competitor. Asian Paints aims to become one of the top five Decorative coatings companies world-wide by leveraging
its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value
in the Industrial coatings business through alliances with established global partners. Asian paints is present in 22
countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution.
Asian Paints has reported a better than expected Q-3;2011 result. Mainly on account of the all round performance
by its all verticals and higher exports. Asian paints has reported an excellent surge in the topline and bottom-line.
Based on the improving economic conditions, higher export and good margins, company have registered a good
performance after countering the net impact of surging raw material cost. Total revenue of the company rose to
Rs.1754.22 Crore as compared to Rs.1277.71 Crore in DEC’09, showing a YoY growth of 37.29%, while total profit
during the said period recorded at Rs 206.60 Crore against a figure of Rs 178.69 Crore on Y/Y basis a rise of 15.62%.
During the said period , Earning per share of the company also has improved significantly and recorded to Rs
21.54 from a average value of Rs 18.63 as on 31st DEC; 2009. Apart from higher realization, effective cost
management helped the company in recording this good performance.
Asian Paints is expected to garner good revenue and profit in coming quarters because of following facts: - 1. On the
recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and
International business units. 2. Demand for Interior and Exterior Emulsions has been good and owing to
Government thrust to infra and construction activities, this demand may witness positive trends in future as well . 3.
Rohtak plant commissioned in April 2010 with an initial capacity of 1,50,000 KL, operating as per plans and has
achieved rated output.4. The Environmental Clearance from MoEF and Consent to establish from MPCB obtained for
the Khandala Paint Plant project. 5. Deep international penetration, Company is having own subsidiaries in African,
European, Asian and American countries, which may provide business opportunity for the company.6. Automotive
business in India may continue to grow in line with market.7. EBIT of overseas business has increased by 5% in the
period April – Dec 2010 compared to 9 Months of previous year. All these indicate about the possible steps,
instrumental to augment the value of shareholders.
Paint & Pigment sector is associated with other industrial verticals in our Country. Though, Asian paints owing to its
number one tag is highest beneficiary of any uptrend in the sector. Yet Civil unrest in Egypt disrupts operations from
January end and rise in the crude may result into substantial rise in the raw material cost for the company.
Inflation continues to be a concern & Rupee likely to be volatile with FII inflows expected to determine the medium
term movements. Recovery issues in US and Euro Zone economies and in case of any abrupt withdrawal by FIIs,
Asian Paints may witness some temporary corrections before moving up.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Fundamental Reasons:-
Asian Paints is an India based global paints & decorative pigments giant having its dominance in the field of all
forms of pigments coating having the vast usages in ancillaries, Automotive, decorative & Industrial arena. Company
was incorporated seven decades before and since then, company has penetrated deep into the various vital aspects of
paints & coating industry of India. Growing in leaps & bounds, from a very humble beginning, Asian Paints becomes
the 10th largest decorative paint company in the world. Asian Paints is more than twice the size of its nearest
competitor. Asian Paints aims to become one of the top five Decorative coatings companies world-wide by leveraging
its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value
in the Industrial coatings business through alliances with established global partners. Asian paints is present in 22
countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution.
Asian Paints has reported a better than expected Q-3;2011 result. Mainly on account of the all round performance
by its all verticals and higher exports. Asian paints has reported an excellent surge in the topline and bottom-line.
Based on the improving economic conditions, higher export and good margins, company have registered a good
performance after countering the net impact of surging raw material cost. Total revenue of the company rose to
Rs.1754.22 Crore as compared to Rs.1277.71 Crore in DEC’09, showing a YoY growth of 37.29%, while total profit
during the said period recorded at Rs 206.60 Crore against a figure of Rs 178.69 Crore on Y/Y basis a rise of 15.62%.
During the said period , Earning per share of the company also has improved significantly and recorded to Rs
21.54 from a average value of Rs 18.63 as on 31st DEC; 2009. Apart from higher realization, effective cost
management helped the company in recording this good performance.
Asian Paints is expected to garner good revenue and profit in coming quarters because of following facts: - 1. On the
recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and
International business units. 2. Demand for Interior and Exterior Emulsions has been good and owing to
Government thrust to infra and construction activities, this demand may witness positive trends in future as well . 3.
Rohtak plant commissioned in April 2010 with an initial capacity of 1,50,000 KL, operating as per plans and has
achieved rated output.4. The Environmental Clearance from MoEF and Consent to establish from MPCB obtained for
the Khandala Paint Plant project. 5. Deep international penetration, Company is having own subsidiaries in African,
European, Asian and American countries, which may provide business opportunity for the company.6. Automotive
business in India may continue to grow in line with market.7. EBIT of overseas business has increased by 5% in the
period April – Dec 2010 compared to 9 Months of previous year. All these indicate about the possible steps,
instrumental to augment the value of shareholders.
Paint & Pigment sector is associated with other industrial verticals in our Country. Though, Asian paints owing to its
number one tag is highest beneficiary of any uptrend in the sector. Yet Civil unrest in Egypt disrupts operations from
January end and rise in the crude may result into substantial rise in the raw material cost for the company.
Inflation continues to be a concern & Rupee likely to be volatile with FII inflows expected to determine the medium
term movements. Recovery issues in US and Euro Zone economies and in case of any abrupt withdrawal by FIIs,
Asian Paints may witness some temporary corrections before moving up.
No comments:
Post a Comment