Basic Company Details

Parameters
Company
Industry
Business (As you understand it, in simple words)
Current Stock Price (Rs)
Face Value (Rs)
No. of Shares (Crore)
Market Capitalization (Rs Crore)
Promoter Shareholding (Latest Quarter)
Promoter Pledged Shareholding (Latest Quarter)

Key Financials (Last 10-Years)

Parameters
Sales Growth (10-Year CAGR)
Gross Profit Growth (10-Year CAGR)
Net Profit Growth (10-Year CAGR)
Average Debt/Equity (x)
Average Return on Equity

Details
Asian Paints
Paints
XYZ
4,665
10
10
44,747
###
###

)
Details
20.4%
18.1%
24.4%
0.3
###

Year
No.Of Companies
Key Ratios
Debt-Equity Ratio
Long Term Debt-Equity Ratio
Current Ratio
Turnover Ratios
Fixed Assets
Inventory
Debtors
Interest Cover Ratio
PBIDTM (%)
PBITM (%)
PBDTM (%)
CPM (%)
APATM (%)
ROCE (%)
RONW (%)
http://www.capitaline.com

2006
19

2007
17

2008
15

0.61
0.36
1.07

0.51
0.3
1.13

0.41
0.23
1.14

3.59
7.65
10.56
8.55
12.38
10.47
11.16
7.57
5.65
31.04
26.74

3.93
7.5
9.85
23.14
12.24
10.64
11.78
8.61
7.02
31.53
31.52

4.12
7.58
10.09
24.01
13.05
11.56
12.57
9.05
7.56
33.7
31.39

2009
11

2010
13

2011
19

2012
15

2013
9

0.31
0.16
1.14

0.3
0.17
1.04

0.24
0.18
1.15

0.23
0.22
1.37

0.19
0.19
1.34

3.98
8.09
10.85
19.39
11.14
9.69
10.64
7.78
6.33
27.87
23.92

4.02
8.43
11.95
40.82
15.62
14.19
15.28
11.21
9.78
39.4
35.4

4.41
7.81
12.96
39.8
14.89
13.31
14.56
10.64
9.06
38.59
32.77

4.72
7.4
12.5
27.2
13.68
12.23
13.23
9.88
8.44
36.72
31.23

4.13
6.98
11.46
24.93
12.87
11.56
12.4
8.99
7.68
33.92
26.98

2014
6

2015
43

0.13
0.13
1.28

0.22
0.2
1.27

3.86
7.11
11.8
30.43
13.12
11.45
12.75
9.34
7.67
34.95
26.53

3.8
7.01
10.69
21.93
12.66
10.91
12.16
8.85
7.1
32.74
26.04

Year
Sources of funds

Mar-06

Mar-07

Mar-08

Cash profit
Increase in equity
Increase in other networth
Increase in loan funds
Decrease in gross block
Decrease in investments
Decrease in working capital
Others
Total Inflow
http://www.capitaline.com

221.02
0.00
0.00
2.84
0.00
0.00
0.00
0.00
223.86

307.63
0.00
0.00
34.59
0.00
0.00
0.00
0.00
342.22

412.97
0.00
0.00
0.00
0.00
0.00
127.73
0.00
540.70

Cash loss
Decrease in networth
Decrease in loan funds
Increase in gross block
Increase in investments
Increase in working capital
Dividend
Others
Total Outflow
http://www.capitaline.com

0
16.82
0
38.5
16.12
32.52
119.9
0
223.86

0
25.55
0
58.34
59.84
73.79
124.7
0
342.22

0
27.72
30.97
230.46
88.49
0
163.06
0
540.7

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

419.51
0.00
0.00
0.00
0.00
188.11
0.00
0.00
607.62

835.24
0.00
0.00
0.00
0.00
0.00
388.52
0.00
1,223.76

842.25
0.00
0.00
76.42
0.00
155.86
0.00
0.00
1,074.53

1,054.83
0.00
0.00
91.99
0.00
5.61
0.00
0.00
1,152.43

1,159.95
0.00
0.00
0.00
0.00
77.52
36.38
0.00
1,273.85

1,377.53
0.00
0.00
0.00
0.00
0.00
539.74
0.00
1,917.27

0
28.53
20.17
229.7
0
161.36
167.86
0
607.62

0
52.77
5.94
437.15
468.92
0
258.98
0
1223.76

0
50.11
0
75.78
0
641.7
306.94
0
1074.53

0
62.24
0
611.46
0
95.04
383.69
0
1152.43

0
74.29
105.82
652.51
0
0
441.23
0
1273.85

0
82.02
16.25
104.18
1206.45
0
508.37
0
1917.27

Mar-15

1,495.79
0.00
0.00
9.89
0.00
0.00
0.00
0.00
1,505.68

0
112.95
0
179.55
222.63
361.71
585.12
43.72
1505.68

DuPont Analysis of Asian Paints Ltd.

Financial Statement Data ($ millions)
Sales
EBIT
Interest Expense (Non-0perating)
Tax Expense
Net Income (Income for Primary EPS)
Assets
Equity

2009
4,478.25
561.84
15.91
183.57
362.36
946.54
1,094.47

Three-Step DuPont Model:

Net Profit Margin (Net Income Sales)
Asset Turnover (Sales Average Assets)
Equity Multiplier (Average Assets Average Equity)
Return on Equity

2009
8.1%
3.27
1.03
27.3%

Five-Step DuPont Model:

Pre-Interest Pretax Margin (EBIT Sales)
Asset Turnover (Sales Average Assets)
Interest Burden [(EBIT - Interest Expense) EBIT]
Tax Efficiency [1 - (Tax Expense (EBIT - Interest Expense))]
Equity Multiplier (Average Assets Average Equity)
Return on Equity

Financial Leverage of Competitors

Kansai Nerolac Paints
Berger Paints
Asian paints

2009
12.5%
3.27
97.2%
66.4%
1.03
27.3%

2009
1.14
1.19
1.03

2010
5,372.73
1,123.77
19.1
330.17
774.5
1791.87
1,557.22

2011
6,621.01
1,138.67
16.34
347.18
775.15
1644.69
1,975.32

2012
8,335.32
1,394.24
31.31
404.54
958.39
2154.1
2,487.78

2013
9,394.03
1,549.81
33.93
465.88
1,050.00
2619.14
3,022.26

2014
10,925.22
1,731.54
28.97
533.51
1,169.06
3721.3
3,600.93

2010
14.4%
3.13
0.97
43.8%

2011
11.7%
3.49
0.85
34.7%

2012
11.5%
3.49
0.87
34.8%

2013
11.2%
2.96
0.96
31.7%

2014
10.7%
2.83
0.99
29.9%

2010
20.9%
3.13
98.3%
70.1%
0.97
43.8%

2011
17.2%
3.49
98.6%
69.1%
0.85
34.7%

2012
16.7%
3.49
97.8%
70.3%
0.87
34.8%

2013
16.5%
2.96
97.8%
69.3%
0.96
31.7%

2014
15.8%
2.83
98.3%
68.7%
0.99
29.9%

2010
1.14
1.04
0.97

2011
1.11
1.16
0.85

2012
1.08
1.21
0.87

2013
1.06
1.32
0.96

2014
1.04
1.28
0.99

2015
12,263.77
1,964.73
31.16
606.17
1,327.40
3998.81
4,230.26

Asian Paints - Ba
Year / Rs Crore
SOURCES OF FUNDS / EQUITY & LIABILITIES
Share Capital
Reserves & Surplus
Shareholder's Funds / Equity
Minority Interest

FY05-06
64
413
478
75

Non-Current Liabilities
Long-Term Borrowings

197

Current Liabilities
Short-Term Borrowings
Trade Payables
Other Current Liabilities
Short-Term Provisions

514
232
177
105

APPLICATION OF FUNDS / ASSETS

Non-Current Assets
Tangible Assets
Intangible Assets
Capital Work-in-Progress
Non-Current Investments
Current Assets
Current Investments
Inventories
Trade Receivables
Cash and Bank Balance
Short-Term Loans and Advances
Other Current Assets

35
20
5
5
5
737
322
256
68
55
35

Asian Paints - Balance Sheet

FY06-07

FY07-08

FY08-09

FY09-10

FY10-11

FY11-12

FY12-13

96
434
529

96
471
567

96
550
646

96
682
778

96
886
982

96
1,107
1,203

96
1,614
1,710

70

64

60

60

57

76

94

160

240

261

180

179

152

104

581
9
272
163
136

618
295
206
117

705
330
249
126

979
126
449
339
66

1,248
96
572
414
166

2,517
157
554
461
1,345

3,315
125
718
661
1,810

34
22
6
1
6

37
24
6
1
6

41
27
7
1
7

45
29
7
1
7

49
32
8
1
8

54
35
9
1
9

59
39
10
1
10

772
12
318
265
70
76
31

950
27
455
296
61
80
32

1,120
75
489
348
73
74
61

1,406
114
598
421
105
98
69

1,692
198
714
460
111
153
56

2,966
769
572
210
1,365
50

3,871
532
956
543
106
1,670
65

FY13-14

FY14-15

96
2,092
2,187

96
2,653
2,749

110

137

147

148

2,081
1,087
703
290

2,771
1,297
1,107
367

65
43
11
1
11

72
47
12
1
12

3,068
367
1,305
573
626
106
90

3,560
285
1,599
781
624
186
84

Asian Paints - P&L Account

Year / Rs Crore
Net Sales
Expenditure
Increase/Decrease in Stock
Raw Material Consumed
Employee Cost
Other Manufacturing Expenses
General and Administration Expenses
Selling and Distribution Expenses
Miscellaneous Expenses
Total Expenditure
Gross Profit
Operating Profit / EBITDA
Other Income
Depreciation
Profit Before Interest & Tax (PBIT)
Interest
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Minority Interest
Share of Associate
Consolidated Profit After Tax (PAT)
Diluted EPS (Rs)
Interim Equity Dividend
Proposed Equity Dividend
Total Equity Dividend

FY05-06
1,817

FY06-07
2,373

FY07-08
2,574

(38)
975
120
66
60
301
56
1,540
815
278
11
49
240
14
226
86
140
(1)
139
14.5
29
42
70

2
1,290
183
74
84
358
85
2,076
1,007
297
27
71
253
15
238
94
144
(3)
4
145
15.1
34
48
82

(61)
1,563
199
86
87
297
68
2,239
985
335
32
69
298
11
287
106
181
(7)
0
174
18.1
38
53
91

aints - P&L Account

FY08-09
3,021

FY09-10
3,670

FY10-11
4,407

FY11-12
5,464

FY12-13
6,681

FY13-14
7,722

FY14-15
9,632

(10)
1,803
219
96
99
345
79
2,630
1,133
391
32
68
354
11
343
132
211
2
(1)
212
22.1
67
53
120

(70)
2,269
257
112
122
411
85
3,187
1,358
483
40
61
462
24
(8)
430
147
283
(2)
(0)
281
29.3
115
10
125

(36)
2,613
301
122
145
535
63
3,743
1,708
664
60
59
665
26
(7)
631
203
428
(19)
409
42.7
62
101
163

(27)
2,866
365
682
167
646
91
4,790
1,943
674
51
74
651
32
(1)
617
197
419
(22)
398
41.5
62
106
168

(102)
3,227
433
797
200
801
89
5,445
2,758
1,236
141
84
1,293
37
1
1,257
373
884
(48)
836
87.1
82
177
259

(151)
3,906
454
922
206
969
85
6,391
3,045
1,331
68
113
1,286
26
1,260
378
881
(38)
843
87.9
82
225
307

(173)
5,099
526
1,073
269
1,207
120
8,122
3,633
1,510
108
121
1,497
43
1,454
434
1,021
(32)
989
103.1
91
293
384

CAGR
20.4%

20.3%
18.1%
20.7%

22.6%

23.0%
24.7%

24.4%

20.8%

Asian Paint
Year / Rs Crore
Net cash (used in) / generated from operating activities
Payment for purchase of fixed assets
Free Cash Flow
Net cash (used in) / generated from investing activities
Net cash (used in) / generated from financing activities
Net increase in cash and cash equivalents

Asian Paints - Cash Flow Statement

FY05-06
154
(40)
114
(70)
(59)
24

FY06-07
249
(44)
205
(113)
(134)
2

FY07-08
111
(97)
14
(74)
(42)
(5)

FY08-09
179
(87)
92
(125)
(42)
12

FY09-10
258
(82)
176
(109)
(111)
38

FY10-11
480
(308)
172
(335)
(134)
11

FY11-12
389
(310)
79
(270)
(230)
(111)

FY12-13
1,063
(395)
668
(299)
(332)
432

FY13-14
762
(156)
606
(440)
(334)
(12)

FY14-15
826
(673)
153
(512)
(327)
(12)

Asian Paints - Key Ra

Operational & Financial Ratios
Diluted Earnings Per Share (Rs)
Diluted Book Value Per Share (Rs)
Tax Rate (%)
Dividend Per Share (Rs)
Dividend Pay Out Ratio (%)

FY05-06
14.5
49.8
38%
7.3
50%

FY06-07
15.1
55.2
40%
8.5
56%

FY07-08
18.1
59.1
37%
9.5
52%

Profitability Ratios
Gross Margin (%)
EBITDA Margin (%)
EBIT Margin (%)
Net Profit Margin (%)

FY05-06
45%
15%
13%
8%

FY06-07
42%
13%
11%
6%

FY07-08
38%
13%
12%
7%

Performance Ratios
Return on Equity (%)
Return on Capital Employed (%)
Return on Invested Capital (%)
Sales/Working Capital (x)

FY05-06
29%
60%
24%
8.2

FY06-07
27%
70%
25%
12.4

FY07-08
31%
52%
26%
7.8

Efficiency Ratios
Receivable Days
Inventory Days
Payable Days

FY05-06
51
65
47

FY06-07
41
49
42

FY07-08
42
64
42

Growth Ratios
Net Sales Growth (%)
EBITDA Growth (%)
PBIT Growth (%)
PAT Growth (%)

FY05-06

FY06-07
31%
7%
6%
4%

FY07-08
8%
13%
18%
20%

Financial Stability Ratios

Total Debt/Equity (x)
Debt Burden (x)
Current Ratio (x)
Quick Ratio (x)
Interest Cover (x)

FY05-06
0.4
1.7
1.4
0.8
17.5

FY06-07
0.3
0.8
1.3
0.8
16.6

FY07-08
0.4
16.7
1.5
0.8
27.5

an Paints - Key Ratios

FY08-09
22.1
67.4
39%
12.5
57%

FY09-10
29.3
81.1
34%
13.0
44%

FY10-11
42.7
102.4
32%
17.0
40%

FY11-12
41.5
125.4
32%
17.5
42%

FY12-13
87.1
178.3
30%
27.0
31%

FY13-14
87.9
228.0
30%
32.0
36%

FY08-09
38%
13%
12%
7%

FY09-10
37%
13%
13%
8%

FY10-11
39%
15%
15%
9%

FY11-12
36%
12%
12%
7%

FY12-13
41%
18%
19%
13%

FY13-14
39%
17%
17%
11%

FY08-09
33%
49%
29%
7.3

FY09-10
36%
66%
35%
8.6

FY10-11
42%
93%
47%
9.9

FY11-12
33%
90%
34%
12.2

FY12-13
49%
150%
70%
12.0

FY13-14
39%
86%
67%
7.8

FY08-09
42
59
40

FY09-10
42
59
45

FY10-11
38
59
47

FY11-12
38
51
37

FY12-13
30
52
39

FY13-14
27
62
51

FY08-09
17%
17%
19%
22%

FY09-10
21%
24%
30%
32%

FY10-11
20%
37%
44%
46%

FY11-12
24%
1%
-2%
-3%

FY12-13
22%
83%
99%
110%

FY13-14
16%
8%
-1%
1%

FY08-09
0.4
2.8
1.6
0.9
31.0

FY09-10
0.4
1.0
1.4
0.8
19.3

FY10-11
0.3
1.0
1.4
0.8
25.2

FY11-12
0.3
1.9
1.2
0.9
20.0

FY12-13
0.1
0.2
1.2
0.9
35.2

FY13-14
0.1
0.2
1.5
0.8
49.5

FY14-15
103.1
286.5
30%
40.0
39%
FY14-15
38%
16%
16%
10%
FY14-15
36%
124%
53%
12.2
FY14-15
30
61
49
FY14-15
25%
13%
16%
17%
FY14-15
0.1
1.0
1.3
0.7
34.5

30%

Income Tax

Equity Beta (last

5 years)
1.11

Asian paints

Peers
Shalimar paints

0.73

Nerolac paints

0.27

Berger paints

0.38

Average D/E

Paint Divison
Rf(30 yr. govt bonds)(30 yr bonds)
equity of paints
Return from market( 10 years CAGR of nifty)
Re
Share of equity in the capital structure
Share of debt in the capital structure

8.10
0.44
14.46
10.92
99.70%
0.30%

Cost of debt (De)

interest expense
Book value of debt
Cost of debt

0
238cr.
0

Wacc for the firm's paint division

10.89

WACC for the home improvement

Total sales
Sales of paints
Sales of home improvement
% share of paints
% shareof home improvments
WACC for the home improvement

NOTE-As the home improvement division is less than a

percent of the total revenues that is earned by the company
we are assuming the WACC of the paint division to be the
WACC for the home improvement as well

(in crores)
11711
11629
82
99.30
0.70
10.89

Debt/equity

Tax rate

unlevered

1.39

0.3

0.37

0.03

0.3

0.26

0.24

0.3

0.33

0.55

Average
unlevered

0.32

Relevered for
paints

equity 0.44384679

Asian Paints: 2-Stage DCF

Initial Cash Flow

476

Years
FCF Growth Rate
Discount Rate
Terminal Growth Rate
Shares Outstanding (Crore)
Net Debt Level
Year
1
2
3
4
5
6
7
8
9
10
Final Calculations(OVERALL)
Terminal Year
PV of Year 1-10 Cash Flows
Terminal Value
Total PV of Cash Flows
Number of Shares
DCF Value / Share (Rs)

1-5
15%
10.89%
2%

6-10
12%

10
(762)
FCF
547
629
724
832
957
1,072
1,200
1,345
1,506
1,687

1,720
5,598
6,883
12,481
10
1,381

Growth
15%
15%
15%
15%
15%
12%
12%
12%
12%
12%

Initial cash flow

Years
FCF Growth Rate
Discount Rate
Terminal Growth Rate

Present Value
493
512
531
550
571
576
582
588
594
600

Shares Outstanding (Crore)

Net Debt Level
PAINT DIVISION
Year
1
2
3
4
5
6
7
8
9
10
Final Calculations(PAINT DIVISION)
Terminal Year
PV of Year 1-10 Cash Flows
Terminal Value
Total PV of Cash Flows
Number of Shares
DCF Value / Share (Rs)

Paint

Housing
472.48
1-5
15%
10.89%
2%

3.33
6-10
12%

10
(762)
FCF
543
621
710
811
927
1,032
1,149
1,279
1,423
1,584

Growth
15%
15%
15%
15%
15%
12%
12%
12%
12%
12%

s(PAINT DIVISION)
1,616
5,402
6,464
11,866
10
1,237

Present Value
490
505
521
537
553
555
557
559
561
563

HOME DIVISION
Year
1
2
3
4
5
6
7
8
9
10
Final Calculations(HOME DIVISION)
Terminal Year
PV of Year 1-10 Cash Flows
Terminal Value
Total PV of Cash Flows
Number of Shares
DCF Value / Share (Rs)

FCF
4
8
14
21
30
40
52
66
83
103

Growth
15%
15%
15%
15%
15%
12%
12%
12%
12%
12%

103
196
411
607
10
63

Present Value
3
7
10
14
18
21
25
29
33
37