- Asian Paints reported a net income of 11.00 billion rupees for the first quarter of 2025, aligned with market expectations.
- Revenue slightly decreased by 0.3% year-over-year to 89.4 billion rupees, just below the estimate of 89.89 billion rupees.
- Total costs increased by 1.3% year-over-year, reaching 76.6 billion rupees.
- Raw material costs decreased by 2% to 40.0 billion rupees, differing from the estimated 49.74 billion rupees.
- The company reported a 24% increase in other income, totaling 1.93 billion rupees.
- Profit before depreciation, interest, tax, and other income decreased by 3.8% year-over-year to 16.25 billion rupees, slightly below the estimate of 16.59 billion rupees.
- The PBDIT margin dropped to 18.2% from 18.9% year-over-year.
- Asian Paints‘ shares reversed losses, gaining up to 1.9% in the market.
- The decorative business in India saw a volume growth of 3.9% but a revenue decline of 1.2% due to subdued demand and early monsoons.
- Revenues from the Industrial Coatings business grew by 8.8%, boosted by strong performance in Auto and Protective coating segments.
- The home décor sector experienced contraction, impacted by pressures on household disposable incomes.
- Asian Paints acquired the remaining 40% stake in Obgenix Software (White Teak) for 1.88 billion rupees, making it a wholly-owned subsidiary.
- CEO Amit Syngle expressed confidence in the long-term growth potential of the home décor and paints industry, emphasizing ongoing innovation and brand strengthening efforts.
- Analysts’ recommendations for Asian Paints include 9 buys, 10 holds, and 20 sells.
Asian Paints on Smartkarma
Smartkarma, the independent investment research network, recently featured insightful analyst coverage on Asian Paints. Sudarshan Bhandari, in their report titled “Asian Paints Vs. Grasim: The Anti-Trust Showdown,” highlighted Grasim’s antitrust complaint against Asian Paints. The complaint alleges antitrust practices by Asian Paints, including dealer-exclusivity and supply-chain pressure. The Competition Commission of India (CCI) has initiated a probe that could impact dealer contracts in B2C staples, with potential outcomes ranging from dismissal to monetary penalties and conduct remedies.
In another report on Asian Paints by analyst Rahul Jain, titled “Asian Paints: Navigating Growth Challenges Amid Evolving Industry Dynamics,” concerns were raised about the company’s low growth guidance for FY26 amidst aggressive expansion efforts by competitors like Grasim and JSW. Despite a stock correction, Asian Paints still trades at a high P/E ratio of around 55x, indicating expensive valuation in the face of slowing growth and increasing competitive pressures in the decorative paints market.
A look at Asian Paints Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Asian Paints Limited, a leading manufacturer of decorative paints and industrial chemicals, is positioned well for long-term growth according to the Smartkarma Smart Scores. With a strong Dividend score of 4 and Resilience score of 4, investors can expect a reliable stream of income and a company that can withstand market volatility. The company’s Growth score of 3 indicates solid potential for expansion, while its Momentum score of 3 suggests steady positive movement in the market.
Overall, Asian Paints appears to be a stable investment opportunity with room for growth, supported by its respectable scores across various factors. While the Value score may be moderate at 2, the company’s strength in dividends, resilience, and growth prospects paint a positive picture for its long-term outlook in the competitive paint and chemical manufacturing industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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