AI Summary
✦ ClarthaAsian Paints is a paints and home-improvement products manufacturer serving India and overseas markets. Decorative paints and coatings drive its core revenue, while waterproofing, adhesives, and wall coverings broaden construction-related demand. Bath fittings, sanitaryware, kitchens, and wardrobes extend its home-decoration offering. Revenue grew 5.1% year-on-year, while profit rose 17.9%, indicating operating leverage and improving margins. The recent share decline, despite profit growth, signals investor concern about valuation and near-term demand expectations. Improving margins support earnings quality, but ROE is unavailable and debt-to-equity of 17.85 implies substantial leverage risk. Such leverage can magnify financial costs and weaken equity returns if operating momentum slows. At 54.9 times earnings, the stock appears rich relative to 5.1% revenue growth, despite faster profit expansion. Neutral sentiment reflects an open question over whether margin improvement can offset elevated valuation, leverage, and slower sales growth.
Valuation Metrics
Trading 1.0% above historical median. Valuation is rising — currently in the fair zone (z-score: +0.25). Confidence: 88%.
Live forward EPS implies next-12-month EPS of ₹60.59. Applying the stock's normalized valuation corridor produces a fair range of ₹2,859.24 to ₹3,496.65, with base value near ₹3,289.43 (+19.9% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹60.59
Forward P/E
45.3x
Base Fair Value
₹3,289.43
Fair Range
₹2,859.24 - ₹3,496.65
Upside To Base
+19.9%
Estimate Source
Live forward EPS
Growth Estimate
+39.9%
5Y Average
55.56
Current
54.83
Overvalued
57.71
Undervalued
47.19
5Y Average
38.21
Current
37.71
Overvalued
41.73
Undervalued
34.23
5Y Average
11.90
Current
12.32
Overvalued
13.68
Undervalued
10.11
Peers & Comparison
Sector: Materials · Theme: Paints
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
GRASIM INDUSTRIES LTD GRASIMCement | +10.5% | 2.8% | 45.5x Premium | +24% vs avg | +23.4% |
HINDALCO INDUSTRIES LTD HINDALCOMetals - Aluminium | +32.1% | 5.5% | 14.4x Undervalued | -61% vs avg | +58.0% |
EICHER MOTORS LTD EICHERMOTTrucks & Buses | +31.5% | 23.2% | 38.0x Fair | +3% vs avg | +41.4% |
BSE LIMITED BSEStock Exchanges & Ratings | +64.0% | 48.9% | 52.3x Premium | +42% vs avg | +44.3% |
DR. REDDY S LABORATORIES DRREDDYPharmaceuticals | -5.6% | 10.0% | 30.3x Undervalued | -18% vs avg | -5.0% |
APOLLO HOSPITALS ENTER. L APOLLOHOSPHospitals & Diagnostic Centres | +18.1% | 7.7% | 64.8x Premium | +76% vs avg | +23.2% |
HCL TECHNOLOGIES LTD HCLTECHIT Services & Consulting | +3.0% | 13.0% | 21.1x Undervalued | -43% vs avg | -8.8% |
BAJAJ AUTO LIMITED BAJAJ-AUTOTwo Wheelers | +64.0% | 16.3% | 27.8x Undervalued | -24% vs avg | +42.5% |
ASIAN PAINTS LIMITED trades at a premium (55.2x vs peer avg 36.8x), implying higher growth or quality expectations from the Paints cohort. Peers include GRASIM INDUSTRIES LTD, HINDALCO INDUSTRIES LTD, EICHER MOTORS LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹9.18K CrJun 2026Latest net profit
₹1.48K CrJun 2026Latest EPS
₹15.41Jun 2026Net margin
22.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 8,114 | 7,342 | 7,913 | 7,577 | 7,976 | 6,967 | 7,418 | 7,192 | 7,868 | 7,356 | 7,624 | 7,920 | 9,183 |
| Expenses + | 6,114 | 5,757 | 6,016 | 6,023 | 6,380 | 5,843 | 5,909 | 5,867 | 6,348 | 5,997 | 5,995 | 6,250 | 7,172 |
| Operating Profit | 2,000 | 1,585 | 1,897 | 1,554 | 1,596 | 1,123 | 1,509 | 1,325 | 1,520 | 1,359 | 1,629 | 1,670 | 2,012 |
| OPM % | 25% | 22% | 24% | 21% | 20% | 16% | 20% | 18% | 19% | 18% | 21% | 21% | 22% |
| Other Income + | 217 | 172 | 238 | 197 | 224 | -19 | 227 | -42 | 248 | 232 | 91 | 195 | 260 |
| Interest | 26 | 28 | 31 | 33 | 33 | 42 | 35 | 34 | 30 | 30 | 28 | 39 | 27 |
| Depreciation | 172 | 179 | 190 | 196 | 198 | 210 | 224 | 269 | 269 | 273 | 275 | 267 | 263 |
| Profit before tax | 2,018 | 1,551 | 1,914 | 1,522 | 1,589 | 853 | 1,476 | 980 | 1,468 | 1,288 | 1,417 | 1,559 | 1,982 |
| Tax % | 25% | 25% | 25% | 21% | 25% | 30% | 25% | 29% | 25% | 26% | 28% | 26% | 25% |
| Net Profit + | 1,508 | 1,160 | 1,444 | 1,209 | 1,189 | 597 | 1,104 | 695 | 1,100 | 956 | 1,027 | 1,161 | 1,478 |
| EPS in Rs | 15.73 | 12.10 | 15.05 | 12.61 | 12.40 | 6.23 | 11.51 | 7.24 | 11.46 | 9.96 | 10.70 | 12.10 | 15.41 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Earnings Call Transcript