Asian Paints Ltd.
Consumer Goods · NSE
52-week range
₹2,115 – ₹2,986
From 52w high
-12.9%
RSI (14)
69.6
vs SMA 50 / 200
↑ 50 · ↑ 200
Asian Paints (₹2,599.90) trades above both its 50-DMA (₹2,344) and 200-DMA (₹2,524), with a 12-month price gain of 8.68%, yet the underlying business has delivered a 5-year earnings CAGR of -4.6% on revenue growth of 3.7%. At a trailing PE of 64.93 — second highest among the six Consumer Goods peers tracked — the company carries the lowest quality score (23 of 100) in that peer group.
- ✓Free cash flow has been positive in 4 of the tracked fiscal years, indicating the business has historically converted revenue to cash despite recent profit pressure.
- ✓Dividend yield of 0.96% has been maintained alongside a consistencyScore of 59, reflecting a degree of earnings regularity over the period.
- ✓Price is trading above both the 50-DMA and 200-DMA simultaneously, a configuration last achieved after a recovery from a 52-week drawdown of -12.92%.
- ✓Two rounds of price hikes announced in April 2026 amid rising input costs suggest the company retains some pricing leverage in its product categories.
- ✗5-year earnings CAGR of -4.6% signals that profit generation has contracted in absolute terms even as revenues grew 3.7% annually, pointing to structurally widening cost pressure.
- ✗Quality score of 23 ranks last (6th of 6) among tracked Consumer Goods peers, a combination of earnings erosion, rising debt, and inconsistent ROE.
- ✗Debt-to-equity of 17.6 is on a confirmed rising trend; absence of ROE data limits full assessment of returns being generated on the expanding capital base.
- ✗Trailing PE of 64.93 is the second highest in the peer group despite the lowest quality score — this is the widest quality-to-valuation spread in the cohort.
- ·Q4 FY26 board meeting to discuss results is scheduled for May 29, 2026, making the next earnings event a near-term data point for margin and volume trends.
- ·Investec reportedly turned constructive on the broader paint sector outlook (May 8, 2026), contributing to a single-day rally in Asian Paints and peer Berger Paints, per TradingView.
- ·Two consecutive price hike announcements in April 2026 (NDTV Profit, Whalesbook) indicate management is attempting to pass through surging input costs; whether volumes absorb these hikes will be visible in Q4 results.
- ?Does the 5-year earnings CAGR of -4.6% reflect a cyclical input-cost squeeze or a structural shift in competitive dynamics within the decorative paints market?
- ?How have debt levels risen relative to operating cash flow over the same 5-year period, and what is the company’s stated plan for deleveraging?
- ?Given that quality score ranks last among Consumer Goods peers, what specific operational or financial metrics would need to improve for that ranking to change?
- ?To what extent do consecutive price hikes protect margins versus risk volume loss to value-segment or private-label competitors?
PE
64.9
Forward PE
51.9
ROE
—
Profit margin
+11.1%
D/E
17.61
Dividend yield
+1.0%
Quality score
23/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.