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Tuesday, January 24, 2012

Share Review - Asian Paints

Asian Paints (APL) posted its 3Q FY 2012 results, largely in line with our estimates.
The company’s consolidated top line grew by 22% y o y to Rs.2,561 Crore (Rs.2,100 Crore), inline
with our estimates. Earnings grew by 17% y o y to Rs.257 Crore (Rs.215 Crore), in line with
our estimates. Operating profit dipped by 0. 91% y o y to Rs.397 Crore (Rs.345 Crore) due to
high raw-material costs and other expenses (up 0.19% y o y).

The company’s EBITDA margins came in at 15.5% against our estimate of 15.7%.

At the CMP, the stock is trading at 22x FY2013E EPS and is fairly valued. Hence, we maintain
our Neutral view on the stock and wait for better entry opportunities.

Share Review by Angel Broking


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