Asian Paints is gradually expanding its product range from paints to other categories with an aim to beautify, preserve and transform all spaces and objects in homes
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PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
The numbers of Asian Paints in Q1 FY22 were truly outstanding as the business delivered another excellent quarter despite the severe impact of the second Covid wave. It also managed to surpass its June-19 quarter revenues by a wide margin. There is no doubt that Asian Paints is a superstar in the industry, but what merits questioning is the company’s valuation as the stock trades at an exorbitant price-to-earnings multiple of 75x. Key result highlights For a business hit hard by the…
