Asian

Paints Ltd
Financial Model

Prepared By
VARSHA THARWANI
 CONTENTS

• Historical Financial Statements

(FY17-FY23)
• Ratio Analysis
• Common Size Financial Statements
• Forecasted Financial Statements
(FY24-FY28)
• Beta Drifting
• Weighted Average Cost of Capital
• Discounted Cash Flow Valuation

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.
ASIAN PAINTS LTD
NSE: ASIANPAINTS | BSE: 500820
Figures in INR(Crores)
Histiorical Financial Statements - ASIAN PAINTS LTD
Income Statement Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales ₹15,062.0 ₹16,824.6 ₹19,240.1 ₹20,211.3 ₹21,712.8 ₹29,101.3 ₹34,488.6

Sales Growth 5.54% 11.70% 14.36% 5.05% 7.43% 34.03% 18.51%

COGS ₹9,732.7 ₹11,194.2 ₹12,905.8 ₹13,158.0 ₹14,035.1 ₹20,590.6 ₹23,766.7

COGS % Sales 64.62% 66.53% 67.08% 65.10% 64.64% 70.75% 68.91%

Gross Profit ₹5,329.3 ₹5,630.4 ₹6,334.3 ₹7,053.2 ₹7,677.7 ₹8,510.7 ₹10,721.9

Gross Margins 35.38% 33.47% 32.92% 34.90% 35.36% 29.25% 31.09%

Selling & General Expenses ₹2,335.6 ₹2,426.4 ₹2,569.4 ₹2,896.4 ₹2,822.1 ₹3,707.1 ₹4,462.1
S&G Expenses % Sales 15.51% 14.42% 13.35% 14.33% 13.00% 12.74% 12.94%

EBITDA ₹2,993.8 ₹3,204.0 ₹3,764.9 ₹4,156.8 ₹4,855.6 ₹4,803.6 ₹6,259.8

EBITDA Margins 19.88% 19.04% 19.57% 20.57% 22.36% 16.51% 18.15%

Interest ₹37.3 ₹41.5 ₹110.5 ₹102.3 ₹91.6 ₹95.4 ₹144.5

Interest % Sales 0.25% 0.25% 0.57% 0.51% 0.42% 0.33% 0.42%

Depreciation ₹334.8 ₹360.5 ₹622.1 ₹780.5 ₹791.3 ₹816.4 ₹858.0

Depreciation % Sales 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49%

Earnings Before Tax ₹2,621.6 ₹2,802.1 ₹3,032.3 ₹3,274.0 ₹3,972.7 ₹3,891.8 ₹5,257.4
EBT % Sales 17.41% 16.65% 15.76% 16.20% 18.30% 13.37% 15.24%

Tax ₹943.3 ₹1,041.0 ₹1,098.1 ₹854.9 ₹1,097.6 ₹1,102.9 ₹1,493.5

Effective tax Rate 35.98% 37.15% 36.21% 26.11% 27.63% 28.34% 28.41%

Net Profit ₹1,678.4 ₹1,761.1 ₹1,934.3 ₹2,419.1 ₹2,875.1 ₹2,788.9 ₹3,763.9

Net Margins 11.14% 10.47% 10.05% 11.97% 13.24% 9.58% 10.91%

No of Equity Shares ₹95.9 ₹95.9 ₹95.9 ₹95.9 ₹95.9 ₹95.9 ₹95.9

Earning Per Share ₹17.5 ₹18.4 ₹20.2 ₹25.2 ₹30.0 ₹29.1 ₹39.2
EPS Growth % 7.87% 4.93% 9.83% 25.07% 18.85% -3.00% 34.96%

Dividend Per Share ₹10.3 ₹8.7 ₹10.5 ₹12.0 ₹17.8 ₹19.2 ₹25.7
Dividend Payout ratio 58.87% 47.38% 52.07% 47.58% 59.55% 65.86% 65.37%

Retained earnings 41.13% 52.62% 47.93% 52.42% 40.45% 34.14% 34.63%

Balance Sheet Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Equity Share Capital ₹95.9 ₹95.9 ₹95.9 ₹95.9 ₹95.9 ₹95.9 ₹95.9
Reserves ₹7,508.0 ₹8,314.3 ₹9,374.6 ₹10,034.2 ₹12,710.4 ₹13,715.6 ₹15,896.3
Borrowings ₹560.3 ₹533.4 ₹1,319.6 ₹1,118.5 ₹1,093.1 ₹1,586.9 ₹1,932.6
Other Liabilities ₹4,241.0 ₹4,819.8 ₹5,458.7 ₹4,889.3 ₹6,455.9 ₹7,560.0 ₹7,854.5
Total Liabilities ₹12,405.2 ₹13,763.5 ₹16,248.8 ₹16,138.0 ₹20,355.3 ₹22,958.4 ₹25,779.3

Fixed Assets Net Block ₹3,303.7 ₹3,732.2 ₹6,496.6 ₹6,272.3 ₹5,858.5 ₹5,519.1 ₹5,770.5
Capital Work in Progress ₹257.5 ₹1,405.1 ₹209.7 ₹140.2 ₹183.0 ₹426.4 ₹1,019.6
Investments ₹2,652.0 ₹2,140.7 ₹2,568.6 ₹2,018.9 ₹4,736.8 ₹3,247.5 ₹4,261.7
Other Assets ₹1,317.2 ₹1,691.8 ₹1,472.0 ₹1,738.7 ₹2,565.5 ₹2,876.7 ₹3,036.2
Total Non Current Assets ₹7,530.4 ₹8,969.9 ₹10,746.8 ₹10,170.1 ₹13,343.8 ₹12,069.7 ₹14,087.9

Receivables ₹1,446.6 ₹1,730.6 ₹1,907.3 ₹1,795.2 ₹2,602.2 ₹3,871.4 ₹4,636.9

Inventory ₹2,626.9 ₹2,658.3 ₹3,149.9 ₹3,389.8 ₹3,798.6 ₹6,153.0 ₹6,210.6
Cash & Bank ₹801.2 ₹404.7 ₹444.9 ₹782.8 ₹610.8 ₹864.3 ₹843.8
Total Current Assets ₹4,874.8 ₹4,793.6 ₹5,502.1 ₹5,967.9 ₹7,011.5 ₹10,888.8 ₹11,691.4

Total Assets ₹12,405.2 ₹13,763.5 ₹16,248.8 ₹16,138.0 ₹20,355.3 ₹22,958.4 ₹25,779.3

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.
ASIAN PAINTS LTD
NSE: ASIANPAINTS | BSE: 500820

Figures in INR(Crores)
Cash Flow Statements Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Profit from operations ₹3,056.0 ₹3,274.0 ₹3,861.0 ₹4,380.0 ₹4,970.0 ₹4,957.0 ₹6,460.0
Receivables ₹(475.0) ₹(483.0) ₹(205.0) ₹160.0 ₹(849.0) ₹(1,326.0) ₹(834.0)
Inventory ₹(629.0) ₹(39.0) ₹(492.0) ₹(251.0) ₹(409.0) ₹(2,354.0) ₹(56.0)
Payables ₹501.0 ₹442.0 ₹287.0 ₹(241.0) ₹1,143.0 ₹644.0 ₹(539.0)
Other WC items - - - - ₹(92.0) ₹242.0 ₹657.0
Working capital changes ₹(603.0) ₹(80.0) ₹(410.0) ₹(331.0) ₹(206.0) ₹(2,795.0) ₹(772.0)
Direct taxes ₹(925.0) ₹(1,081.0) ₹(982.0) ₹(1,011.0) ₹(1,080.0) ₹(1,176.0) ₹(1,494.0)
Cash From Operating Activities ₹925.0 ₹2,033.0 ₹2,059.0 ₹2,706.0 ₹3,477.0 ₹(1,808.0) ₹3,422.0
Fixed assets purchased ₹(684.0) ₹(1,426.0) ₹(1,151.0) ₹(404.0) ₹(282.0) ₹(551.0) ₹(1,446.0)
Fixed assets sold ₹17.0 ₹17.0 ₹17.0 ₹37.0 ₹28.0 ₹40.0 ₹26.0
Investments purchased ₹(153.0) ₹(320.0) ₹(573.0) ₹(25.0) ₹(140.0) - ₹(146.0)
Investments sold ₹357.0 ₹362.0 ₹733.0 ₹134.0 ₹272.0 ₹207.0 ₹446.0
Interest received ₹32.0 ₹39.0 ₹40.0 ₹65.0 ₹73.0 ₹77.0 ₹87.0
Dividends received ₹74.0 ₹38.0 ₹40.0 ₹27.0 ₹8.0 ₹15.0 ₹56.0
Investment in group cos - - - - - - ₹(180.0)
Redemp n Canc of Shares - ₹141.0 - - - - -
Acquisition of companies - ₹(525.0) - - - - -
Other investing items ₹(324.0) ₹118.0 ₹(24.0) ₹(353.0) ₹(500.0) ₹(105.0) ₹(126.0)
Cash From Investing Activities ₹(681.0) ₹(1,556.0) ₹(918.0) ₹(519.0) ₹(541.0) ₹(317.0) ₹(1,283.0)
Proceeds from borrowings ₹271.0 ₹10.0 ₹243.0 ₹18.0 ₹155.0 ₹418.0 ₹254.0
Repayment of borrowings ₹(58.0) ₹(54.0) ₹(26.0) ₹(279.0) ₹(14.0) ₹(8.0) ₹(25.0)
Interest paid fin ₹(36.0) ₹(35.0) ₹(106.0) ₹(101.0) ₹(89.0) ₹(94.0) ₹(142.0)
Dividends paid ₹(947.0) ₹(1,218.0) ₹(1,049.0) ₹(2,121.0) ₹(499.0) ₹(1,763.0) ₹(1,936.0)
Financial liabilities - - ₹(180.0) ₹(179.0) ₹(203.0) ₹(221.0) ₹(256.0)
Other financing items ₹13.0 ₹(82.0) - ₹(209.0) - ₹(140.0) ₹(36.0)
Cash From Financing Activities ₹(757.0) ₹(1,379.0) ₹(1,118.0) ₹(2,871.0) ₹(650.0) ₹(1,808.0) ₹(2,141.0)

Net Cash Flow ₹(513.0) ₹(902.0) ₹23.0 ₹(684.0) ₹2,286.0 ₹(3,933.0) ₹(2.0)

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.
ASIAN PAINTS LTD
NSE: ASIANPAINTS | BSE: 500820

Common Size Income Statements - ASIAN PAINTS LTD

Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 49.48% 48.31% 51.84% 49.39% 48.02% 58.84% 55.05%
Change in Inventory 3.51% -0.84% 1.52% 1.18% 0.43% 4.55% 0.90%
Power and Fuel 0.70% 0.66% 0.62% 0.48% 0.40% 0.40% 0.40%
Other Mfr. Exp 11.04% 10.05% 9.68% 9.63% 9.53% 9.90% 8.46%
Employee Cost 6.90% 6.67% 6.46% 6.78% 7.13% 6.17% 5.90%
Selling and admin 28.97% 13.40% 12.30% 11.44% 10.34% 10.11% 10.15%
Other Expenses -13.47% 1.02% 1.05% 2.89% 2.65% 2.63% 2.79%
Other Income 2.24% 2.00% 1.42% 1.76% 1.53% 1.02% 1.25%
Depreciation 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49%
Interest 0.25% 0.25% 0.57% 0.51% 0.42% 0.33% 0.42%
Profit before tax 19.65% 18.65% 17.18% 17.96% 19.82% 14.39% 16.49%
Net profit 12.88% 12.12% 11.21% 13.38% 14.46% 10.41% 11.91%
Dividend Amount 6.56% 4.96% 5.23% 5.70% 7.89% 6.31% 7.13%
EBIDTA 21.61% 20.69% 20.72% 21.98% 23.58% 17.34% 19.14%

Common Size Balance Sheet - ASIAN PAINTS LTD

Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 0.77% 0.70% 0.59% 0.59% 0.47% 0.42% 0.37%
Reserves 60.52% 60.41% 57.69% 62.18% 62.44% 59.74% 61.66%
Borrowings 4.52% 3.88% 8.12% 6.93% 5.37% 6.91% 7.50%
Other Liabilities 34.19% 35.02% 33.59% 30.30% 31.72% 32.93% 30.47%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Net Block 26.63% 27.12% 39.98% 38.87% 28.78% 24.04% 22.38%
Capital Work in Progress 2.08% 10.21% 1.29% 0.87% 0.90% 1.86% 3.96%
Investments 21.38% 15.55% 15.81% 12.51% 23.27% 14.15% 16.53%
Other Assets 10.62% 12.29% 9.06% 10.77% 12.60% 12.53% 11.78%
Receivables 11.66% 12.57% 11.74% 11.12% 12.78% 16.86% 17.99%
Inventory 21.18% 19.31% 19.39% 21.01% 18.66% 26.80% 24.09%
Cash & Bank 6.46% 2.94% 2.74% 4.85% 3.00% 3.76% 3.27%

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.
ASIAN PAINTS LTD
NSE: ASIANPAINTS | BSE: 500820

Ratio Analysis - ASIAN PAINTS LTD

Year Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Trend Mean Median

SalesGrowth - 11.70% 14.36% 5.05% 7.43% 34.03% 18.51% 15.18% 13.03%

EBITDA Growth - 7.02% 17.51% 10.41% 16.81% -1.07% 30.32% 13.50% 13.61%
EBIT Growth - 6.88% 8.22% 7.97% 21.34% -2.04% 35.09% 12.91% 8.09%
Net Profit Growth - 4.93% 9.83% 25.07% 18.85% -3.00% 34.96% 15.11% 14.34%
Dividend Growth - -15.53% 20.69% 14.29% 48.75% 7.28% 33.94% 18.24% 17.49%

Gross Margin 35.38% 33.47% 32.92% 34.90% 35.36% 29.25% 31.09% 33.19% 33.47%
EBITDA Margin 19.88% 19.04% 19.57% 20.57% 22.36% 16.51% 18.15% 19.44% 19.57%
EBIT Margin 17.65% 16.90% 16.33% 16.71% 18.72% 13.70% 15.66% 16.53% 16.71%
EBT Margin 17.41% 16.65% 15.76% 16.20% 18.30% 13.37% 15.24% 16.13% 16.20%
Net Profit Margin 11.14% 10.47% 10.05% 11.97% 13.24% 9.58% 10.91% 11.05% 10.91%

SalesExpenses%Sales 64.62% 66.53% 67.08% 65.10% 64.64% 70.75% 68.91% 66.81% 66.53%
Depreciation%Sales 2.22% 2.14% 3.23% 3.86% 3.64% 2.81% 2.49% 2.91% 2.81%
OperatingIncome%Sales 17.65% 16.90% 16.33% 16.71% 18.72% 13.70% 15.66% 16.53% 16.71%

Return on Capital Employed 32.57% 31.79% 29.13% 30.02% 29.24% 25.89% 30.14% 29.83% 30.02%
Retained Earnings% 41.13% 52.62% 47.93% 52.42% 40.45% 34.14% 34.63% 43.33% 41.13%
Return on Equity% 22.07% 20.94% 20.42% 23.88% 22.45% 20.19% 23.54% 21.93% 22.07%
Self Sustained Growth Rate 9.08% 11.02% 9.79% 12.52% 9.08% 6.89% 8.15% 9.50% 9.08%
Interest Coverage Ratio 71.23X 68.57X 28.45X 32.99X 44.36X 41.79X 37.40X 46.40X 41.79X

Debtor Turnover Ratio 10.41X 9.72X 10.09X 11.26X 8.34X 7.52X 7.44X 9.25X 9.72X
Creditor Turnover Ratio 3.55X 3.49X 3.52X 4.13X 3.36X 3.85X 4.39X 3.76X 3.55X
Inventory Turnover 5.73X 6.33X 6.11X 5.96X 5.72X 4.73X 5.55X 5.73X 5.73X
Fixed Asset Turnover 4.56X 4.51X 2.96X 3.22X 3.71X 5.27X 5.98X 4.32X 4.51X
Capital Turnover Ratio 1.98X 2.00X 2.03X 2.00X 1.70X 2.11X 2.16X 2.00X 2.00X

Debtor Days 35 38 36 32 44 49 49 40 38
Payable Days 103 105 104 88 109 95 83 98 103
Inventory Days 64 58 60 61 64 77 66 64 64
Cash Conversion Cycle (in days) -4 -9 -8 5 -1 31 32 7 -1

CFO/Sales 6.14% 12.08% 10.70% 13.39% 16.01% -6.21% 9.92% 8.86% 10.70%
CFO/Total Assets 7.46% 14.77% 12.67% 16.77% 17.08% -7.88% 13.27% 10.59% 13.27%
CFO/Total Debt 165.08% 381.12% 156.03% 241.93% 318.08% -113.93% 177.07% 189.34% 177.07%

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.
ASIAN PAINTS LTD
NSE: ASIANPAINTS | BSE: 500820
Figures in INR(Crores)
FORECASTING
Year weight Year Sales Sales Growth Year weight Year EBITDA EBITDA Growth
1 2017A ₹15,062.0 1 2017A ₹2,993.8
2 2018A ₹16,824.6 11.70% 2 2018A ₹3,204.0 7.02%
3 2019A ₹19,240.1 14.36% 3 2019A ₹3,764.9 17.51%
4 2020A ₹20,211.3 5.05% 4 2020A ₹4,156.8 10.41%
5 2021A ₹21,712.8 7.43% 5 2021A ₹4,855.6 16.81%
6 2022A ₹29,101.3 34.03% 6 2022A ₹4,803.6 -1.07%
7 2023A ₹34,488.6 18.51% 7 2023A ₹6,259.8 30.32%
8 2024E ₹34,563.8 0.22% 8 2024E ₹6,303.8 0.70%
9 2025E ₹37,610.4 8.81% 9 2025E ₹6,807.0 7.98%
10 2026E ₹40,657.1 8.10% 10 2026E ₹7,310.1 7.39%
11 2027E ₹43,703.7 7.49% 11 2027E ₹7,813.3 6.88%
12 2028E ₹46,750.3 6.97% 12 2028E ₹8,316.4 6.44%

₹50,000.0
Sales Growth EBITDA Growth
₹10,000.0
₹40,000.0
₹30,000.0 ₹8,000.0

₹20,000.0 ₹6,000.0

₹10,000.0 ₹4,000.0

- ₹2,000.0
2017A2018A2019A2020A2021A2022A2023A 2024E 2025E 2026E 2027E 2028E
-
2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024E 2025E 2026E 2027E 2028E

Year weight Year EPS EPS Growth Year weight Year EBT EBT Growth
1 2017A ₹17.5 1 2017A ₹2,621.6
2 2018A ₹18.4 4.93% 2 2018A ₹2,802.1 6.88%
3 2019A ₹20.2 9.83% 3 2019A ₹3,032.3 8.22%
4 2020A ₹25.2 25.07% 4 2020A ₹3,274.0 7.97%
5 2021A ₹30.0 18.85% 5 2021A ₹3,972.7 21.34%
6 2022A ₹29.1 -3.00% 6 2022A ₹3,891.8 -2.04%
7 2023A ₹39.2 34.96% 7 2023A ₹5,257.4 35.09%
8 2024E ₹39.4 0.48% 8 2024E ₹5,125.6 -2.51%
9 2025E ₹42.9 8.74% 9 2025E ₹5,519.4 7.68%
10 2026E ₹46.3 8.04% 10 2026E ₹5,913.2 7.14%
11 2027E ₹49.8 7.44% 11 2027E ₹6,307.1 6.66%
12 2028E ₹53.2 6.92% 12 2028E ₹6,700.9 6.24%

EPS Growth EBT Growth

₹60.0 ₹8,000.0
₹50.0
₹6,000.0
₹40.0
₹30.0 ₹4,000.0
₹20.0
₹2,000.0
₹10.0
₹0.0 -
2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024E 2025E 2026E 2027E 2028E 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024E 2025E 2026E 2027E 2028E

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.
ASIAN PAINTS LTD
NSE: ASIANPAINTS | BSE: 500820

Beta Regression
Regression Beta - 2 Years Weekly
ASIAN PAINTS LTD Weekely Returns NIFTY Returns Beta Drifting
Date Closing price Return Closing price Return Levered Raw Beta 0.93
01-03-2021 2,335.9 14,938.1 Raw Beta Weight 75.00%
08-03-2021 2,349.8 0.60% 15,031.0 0.62%
15-03-2021 2,359.5 0.41% 14,744.0 -1.91% Market Beta 1.00
22-03-2021 2,451.4 3.89% 14,507.3 -1.61% Market Beta Weight 25.00%
29-03-2021 2,497.0 1.86% 14,867.3 2.48%
05-04-2021 2,574.4 3.10% 14,834.8 -0.22% Adjusted Beta 0.95
12-04-2021 2,606.6 1.25% 14,617.8 -1.46%
19-04-2021 2,463.9 -5.47% 14,341.3 -1.89%
26-04-2021 2,482.0 0.73% 14,631.1 2.02%
03-05-2021 2,496.9 0.60% 14,823.2 1.31%
10-05-2021 2,715.0 8.73% 14,677.8 -0.98%
17-05-2021 2,771.7 2.09% 15,175.3 3.39%
24-05-2021 2,877.6 3.82% 15,435.7 1.72%
31-05-2021 2,862.1 -0.54% 15,670.3 1.52%
07-06-2021 2,892.8 1.07% 15,799.3 0.82%
14-06-2021 2,996.6 3.59% 15,683.3 -0.73%
21-06-2021 2,954.0 -1.42% 15,860.3 1.13%
28-06-2021 2,955.1 0.04% 15,722.2 -0.87%
05-07-2021 2,960.6 0.19% 15,689.8 -0.21%
12-07-2021 2,939.6 -0.71% 15,923.4 1.49%
19-07-2021 3,032.5 3.16% 15,856.0 -0.42%
26-07-2021 2,909.3 -4.06% 15,763.0 -0.59%
02-08-2021 2,917.2 0.27% 16,238.2 3.01%
09-08-2021 2,939.1 0.75% 16,529.1 1.79%
16-08-2021 3,061.2 4.16% 16,450.5 -0.48%
23-08-2021 2,986.4 -2.45% 16,705.2 1.55%
30-08-2021 3,283.3 9.94% 17,323.6 3.70%
06-09-2021 3,290.8 0.23% 17,369.3 0.26%
12-09-2022 3,290.1 -3.47% 17,530.8 -1.70%
19-09-2022 3,362.1 2.19% 17,327.3 -1.16%
26-09-2022 3,309.8 -1.56% 17,094.3 -1.34%
03-10-2022 3,311.0 0.04% 17,314.7 1.29%
10-10-2022 3,154.4 -4.73% 17,185.7 -0.74%
17-10-2022 3,062.2 -2.92% 17,576.3 2.27%
24-10-2022 3,023.6 -1.26% 17,786.8 1.20%
31-10-2022 3,150.3 4.19% 18,117.2 1.86%
07-11-2022 3,029.9 -3.82% 18,349.7 1.28%
14-11-2022 3,069.7 1.31% 18,307.7 -0.23%
21-11-2022 3,082.2 0.41% 18,512.8 1.12%
28-11-2022 3,117.2 1.14% 18,696.1 0.99%
05-12-2022 3,200.0 2.66% 18,496.6 -1.07%
12-12-2022 3,030.4 -5.30% 18,269.0 -1.23%
19-12-2022 3,032.4 0.07% 17,806.8 -2.53%
26-12-2022 3,062.1 0.98% 18,105.3 1.68%
02-01-2023 2,953.5 -3.55% 17,859.4 -1.36%
09-01-2023 2,884.9 -2.33% 17,956.6 0.54%
16-01-2023 2,764.5 -4.17% 18,027.7 0.40%
23-01-2023 2,699.9 -2.34% 17,604.3 -2.35%
30-01-2023 2,737.4 1.39% 17,854.1 1.42%
06-02-2023 2,781.2 1.60% 17,856.5 0.01%
13-02-2023 2,809.9 1.03% 17,944.2 0.49%
20-02-2023 2,715.6 -3.36% 17,465.8 -2.67%
27-02-2023 2,817.2 3.74% 17,450.9 -0.09%

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.
ASIAN PAINTS LTD
NSE: ASIANPAINTS | BSE: 500820

All figures are in INR (Crores) unless stated otherwise

Weighted Average Cost of Capital
Peer Comps
Debt/ Debt/ Levered Unlevered
Name of the Comp Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta 2 Beta 3

Asian Paints India ₹2,474.4 ₹275,361.8 30.00% 0.90% 0.89% 0.95 0.94
Berger Paints India ₹753.3 ₹56,943.2 30.00% 1.32% 1.31% 0.74 0.73
Kansai Nerolac India ₹276.4 ₹21,838.4 30.00% 1.27% 1.25% 0.66 0.65
Akzo Nobel India ₹60.4 ₹11,748.7 30.00% 0.51% 0.51% 0.32 0.32
Indigo Paints India ₹16.8 ₹6,599.1 30.00% 0.26% 0.25% 0.51 0.51

Average 30.00% 0.85% 0.84% 0.64 0.63

Median 30.00% 0.90% 0.89% 0.66 0.65

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 8.28% Risk Free Rate 6.98%

Tax Rate 30.00% Equity Risk Premium 8.63%
Post Tax Cost of Debt 5.80% Levered Beta 4 0.66
Cost of Equity 12.66%

Capital Strutcture Levered Beta

Current Target Comps Median Unlevered Beta 0.65

Total Debt ₹2,474.4 0.89% 0.84% Target Debt/Equity 0.85%
Total Market Capitalization ₹275,361.8 99.11% 99.16% Tax rate 30.00%
Total Capital ₹277,836.2 100.00% 100.00% Levered Beta 0.66

Debt/Equity 0.90% 0.85% Weighted Average Cost of Capital

Notes:
1. Tax Rate considered as Marginal Tax Rate for the country Cost of Equity 12.66%
2. Levered Beta is based on 5 year monthly data Equity Weight 99.16%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity)
4. Levered Beta = Unlevered Beta*(1+(1-Tax Rate) x Debt/Equity) Cost of Debt 5.80%
Debt Weight 0.84%

WACC 12.60%

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.
ASIAN PAINTS LTD
NSE: ASIANPAINTS | BSE: 500820

Figures in INR(Crores)
Discounted Cash Flow Valuation
Calculation of PV of FCFF Mar-23A Mar-24E Mar-25E Mar-26E Mar-27E Mar-28E
EBIT ₹5,744.4 ₹6,633.6 ₹7,660.5 ₹8,846.4 ₹10,215.8 ₹11,797.2
Less: Tax 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-T) ₹4,021.1 ₹4,643.5 ₹5,362.4 ₹6,192.5 ₹7,151.0 ₹8,258.0
Less: Reinvestment 57.81% 55.64% 53.47% 51.31% 49.14% 49.14%
Free Cash Flow to Firm (FCFF) ₹1,696.6 ₹2,059.9 ₹2,494.9 ₹3,015.3 ₹3,637.0 ₹4,200.0
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.942 0.837 0.743 0.660 0.586
PV of FCFF ₹1,941.2 ₹2,088.1 ₹2,241.2 ₹2,400.8 ₹2,462.2

Calculation of Terminal Value

FCFF (n+1) ₹4,850.2
WACC 12.60%
Terminal Growth Rate 6.80%
Terminal Value ₹83,619.2

Calculation of Equity Value Per Share

PV of FCFF ₹11,133.5
PV of Terminal Value ₹49,020.5
Total Enterprise Value ₹60,154.0

Add: Cash ₹843.8

Less: Debt ₹972.0
Equity Value ₹60,025.8
No of Shares 95.9
Equity value Per Share ₹625.8

Current Market Price (28-05-2024) ₹2,872.0

Rating Overvalued
Discount/Premium 4.59x

Assumptions
1. The growth rate is based on Asian Paint's historical growth trends (past 5 years average)
2. The terminal growth rate is based on India's long term GDP growth rate.

Disclaimer: This model is for educational purposes only. Any financial data from this model is not and should not
be considered as an investment advice. The data used in this model is secondary and based on my assumptions.