consumer
Asian Paints
ASIANPAINT · Nifty 50
₹2,738
Price 2026-06-17
At a Glance
Fundamental
100/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Asian Paints scores 100/100 on fundamentals (strong). Asian Paints: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 100/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 20.2% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 20.24% is strong efficiency-driven and stable. Net margin of 12.2% × asset turnover of 1.03x × leverage of 1.6x.
What This Means
Net margin of 12.2% means the company keeps ₹12.2 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 1.03x means the company efficiently uses its assets to generate revenue. Leverage of 1.6x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
43.7%
Operating
17.4%
Net
12.2%
Gross margin 43.7% → operating margin 17.4% → net margin 12.2%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 31.7x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.5x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 15.8% — strong cash generation. Business is self-funding.
Peer Comparison
Asian Paints is compared against 10 peers in the consumer sector.
Key Watchpoints
Breaks above ₹2875 (+5%)
Trend reversal confirmation
Breaks below ₹2601 (-5%)
Further downside risk
PE reverts to 5Y median of 59.5
Valuation normalization
Consumer sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Potential accounting concerns. Cross-check with earnings quality flags.
Profits are from core operations, not one-offs. High quality.
Modern asset base. Lower near-term capex requirements.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes