KEY DATA Revenue robust; cost inflationary
Transcript of KEY DATA Revenue robust; cost inflationary
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KEY DATA
Rating BUY Sector relative Outperformer Price (INR) 2,556 12 month price target (INR) 3,185 Market cap (INR bn/USD bn) 2,452/33.4 Free float/Foreign ownership (%) 47.2/19.8
What’s Changed Target Price
Rating/Risk Rating ⚊
QUICK TAKE
Revenue robust; cost inflationary
Asian Paints’ (APL) Q4FY21 consolidated revenue (up 43.5% YoY) beat our expectations, whereas EBITDA (up 53.4% YoY) and PAT (up 81.1% YoY) came below our estimates. The Decorative business clocked multi-quarter high volume growth (48% YoY on soft base of ~1% YoY) led by a strong performance in the premium and luxury portfolios. Inflation in raw material prices led to gross margin compression of
266bps YoY, however on a softer base. Meanwhile, cost optimisation and improvements in sourcing lifted EBITDA margin by 128bps YoY.
Overall, we believe APL’s operational prowess and market leadership will help it continue to drive volume growth. Maintain ‘BUY’ with a revised TP of INR3,185.
FINANCIALS (INR mn)
Year to March FY20A FY21E FY22E FY23E
Revenue 2,02,113 2,17,128 2,55,841 2,86,578
EBITDA 41,618 48,556 57,691 65,530
Adjusted profit 27,791 32,068 39,254 45,202
Diluted EPS (INR) 29.0 33.4 40.9 47.1
EPS growth (%) 25.6 15.4 22.4 15.2
RoAE (%) 28.3 28.0 28.3 27.9
P/E (x) 88.2 76.5 62.5 54.2
EV/EBITDA (x) 58.7 49.8 41.5 36.1
Dividend yield (%) 0.5 0.7 0.7 0.8
PRICE PERFORMANCE
Premium and luxury portfolios drive volumes
Standalone sales grew 46.2% YoY, continuing its impressive run. The domestic
decorative business delivered a stellar performance, registering 48% YoY volume
growth led by robust growth in the premium and luxury product range. The home
improvement business also clocked record sales aided by the home décor business
(EssEss’s revenue up 83.9% YoY and Sleek’s 78.1% YoY). The Industrial coatings
business delivered a solid performance in protective coatings and re-finish segments
supported by the uptick in industrial activity. The international business continued
to record exceptional double-digit volume growth, led by good growth in Asia and
the Middle East. All in all, with the demand momentum sustaining, we expect APL’s
strong double-digit volume growth in decorative business to sustain.
Q4FY21 conference call: Key takeaways
The company has taken a price hike of 2.8% effective May 1st. Tier 1 and 2 cities saw
a pick-up in demand from Q3-end onwards. Tier 3 and other areas continued their
strong momentum. The company is focusing on improving volumes and developing
the kitchen and bath business to complement its home décor business in the short
run and to gradually improve profitability over medium term.
Explore:
Outlook and valuation: Shining bright; maintain ‘BUY’
We expect double-digit growth in decorative volumes to sustain, riding the potential
demand shift from unorganised segment (~30%). This coupled with APL’s ability to
raise prices should help it maintain margin. Considering top-line outperformance, we
are raising the TP to INR3,185 (from INR3,140); retain ‘BUY/SO’ (54.2x FY23E EPS).
Financials Year to March Q4FY21 Q4FY20 % Change Q3FY21 % Change
Net Revenue 66,514 46,356 43.5 67,885 (2.0)
EBITDA 13,183 8,596 53.4 17,879 (26.3)
Adjusted Profit 8,699 4,803 81.1 12,654 (31.3)
Diluted EPS (INR) 9.1 5.0 81.1 13.2 (31.3)
Above In line Below
Profit
Margins
Revenue Growth
Overall
30,000
34,600
39,200
43,800
48,400
53,000
1,500
1,770
2,040
2,310
2,580
2,850
May-20 Aug-20 Nov-20 Feb-21 May-21
APNT IN Equity Sensex
India Equity Research Consumer discretionary May 12, 2021
ASIAN PAINTS RESULT UPDATE
Abneesh Roy Tushar Sundrani +91 (22) 6620 3141 +91 (22) 6620 3004 [email protected] [email protected]
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Financial Statements
Income Statement (INR mn) Year to March FY20A FY21E FY22E FY23E
Total operating income 2,02,113 2,17,128 2,55,841 2,86,578
Gross profit 88,278 96,156 1,13,666 1,28,984
Employee costs 13,661 15,408 17,262 19,385
Other expenses 23,824 24,361 28,367 32,017
EBITDA 41,618 48,556 57,691 65,530
Depreciation 7,805 7,913 8,660 9,160
Less: Interest expense 1,023 916 991 931
Add: Other income 3,043 3,031 4,011 4,498
Profit before tax 35,833 42,758 52,051 59,938
Prov for tax 8,549 10,976 13,377 15,404
Less: Other adj 0 0 0 0
Reported profit 27,791 32,068 39,254 45,202
Less: Excp.item (net) 0 0 0 0
Adjusted profit 27,791 32,068 39,254 45,202
Diluted shares o/s 959 959 959 959
Adjusted diluted EPS 29.0 33.4 40.9 47.1
DPS (INR) 12.0 17.9 18.4 21.2
Tax rate (%) 23.9 25.7 25.7 25.7
Important Ratios (%) Year to March FY20A FY21E FY22E FY23E
Other exp (% of rev) 11.8 11.2 11.1 11.2
Con A&P (% of rev) 4.5 3.6 4.0 4.2
Gross margin (%) 43.7 44.3 44.4 45.0
EBITDA margin (%) 20.6 22.4 22.5 22.9
Net profit margin (%) 13.8 14.8 15.3 15.8
Revenue growth (% YoY) 4.5 7.4 17.8 12.0
EBITDA growth (% YoY) 18.1 16.7 18.8 13.6
Adj. profit growth (%) 25.6 15.4 22.4 15.2
Assumptions (%) Year to March FY20A FY21E FY22E FY23E
GDP (YoY %) 4.8 (6.0) 7.0 6.0
Repo rate (%) 4.4 3.5 3.5 4.0
USD/INR (average) 70.7 75.0 73.0 72.0
Sales growth std 5.1 2.0 22.0 12.0
Volume growth - std 10.5 6.0 22.0 13.0
COGS % of sales (con) 56.3 55.7 55.6 55.0
COGS % of sales (std) 55.3 54.5 54.7 54.2
Staff cost (% of rev) 6.8 7.1 6.7 6.8
Std A&P (% of rev) 4.6 3.5 4.3 4.5
Valuation Metrics Year to March FY20A FY21E FY22E FY23E
Diluted P/E (x) 88.2 76.5 62.5 54.2
Price/BV (x) 24.2 19.1 16.4 14.0
EV/EBITDA (x) 58.7 49.8 41.5 36.1
Dividend yield (%) 0.5 0.7 0.7 0.8
Source: Company and Edelweiss estimates
Balance Sheet (INR mn) Year to March FY20A FY21E FY22E FY23E
Share capital 959 959 959 959
Reserves 1,00,342 1,27,104 1,48,693 1,73,554
Shareholders funds 1,01,302 1,28,063 1,49,653 1,74,513
Minority interest 4,035 4,229 4,809 5,477
Borrowings 3,511 3,402 3,202 3,002
Trade payables 21,366 33,787 27,267 30,224
Other liabs & prov 23,383 26,228 26,228 26,228
Total liabilities 1,61,380 2,03,553 2,19,003 2,47,288
Net block 56,849 53,219 50,611 46,451
Intangible assets 5,875 5,366 5,366 5,366
Capital WIP 1,402 1,830 3,000 3,000
Total fixed assets 64,126 60,415 58,977 54,818
Non current inv 15,064 14,697 14,697 14,697
Cash/cash equivalent 12,953 38,779 60,268 86,005
Sundry debtors 17,994 26,051 22,430 25,125
Loans & advances 869 795 795 795
Other assets 50,374 62,818 61,836 65,849
Total assets 1,61,380 2,03,553 2,19,003 2,47,288
Free Cash Flow (INR mn) Year to March FY20A FY21E FY22E FY23E
Reported profit 27,791 32,068 39,254 45,202
Add: Depreciation 7,805 7,913 8,660 9,160
Interest (net of tax) 1,023 916 991 931
Others (507) (286) (580) (668)
Less: Changes in WC (3,837) 277 (1,919) (3,751)
Operating cash flow 32,275 40,888 46,406 50,873
Less: Capex (2,707) (5,427) (5,000) (5,000)
Free cash flow 29,568 35,460 41,406 45,873
Key Ratios Year to March FY20A FY21E FY22E FY23E
RoE (%) 28.3 28.0 28.3 27.9
RoCE (%) 34.5 35.7 36.2 35.7
Inventory days 105 108 96 90
Receivable days 34 37 35 30
Payable days 73 83 78 67
Working cap (% sales) 14.2 15.5 13.9 13.7
Gross debt/equity (x) 0 0 0 0
Net debt/equity (x) (0.1) (0.3) (0.4) (0.5)
Interest coverage (x) 33.0 44.4 49.5 60.6
Valuation Drivers Year to March FY20A FY21E FY22E FY23E
EPS growth (%) 25.6 15.4 22.4 15.2
RoE (%) 28.3 28.0 28.3 27.9
EBITDA growth (%) 18.1 16.7 18.8 13.6
Payout ratio (%) 41.4 53.4 45.0 45.0
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Trends at a glance
Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
Domestic decorative volume growth (% YoY) ~10.5 ~16.0 14.0 11.0 ~1.0 (38.0) 11.0 33.0 48.0
Consolidated sales growth (% YoY) 11.9 16.9 9.4 2.4 (7.6) (42.7) 5.9 25.2 43.5
Consolidated gross margin (%) 41.6 43.5 42.4 43.0 45.8 44.7 44.4 45.1 43.2
Consolidated staff costs (% of revenue) 6.7 6.7 6.9 6.3 7.2 12.4 7.1 5.7 6.2
Consolidated other expenses (% of revenue) 18.5 14.3 16.7 14.7 20.1 15.8 13.7 13.0 17.2
Consolidated EBITDA growth (% YoY) (2.0) 24.4 13.0 14.0 (2.7) (58.2) 32.5 50.3 53.4
Consolidated EBITDA margin (%) 17.6 22.5 18.9 21.9 18.5 16.6 23.6 26.3 19.8
Standalone sales growth (% YoY) 12.2 18.2 9.3 2.7 (8.4) (44.1) 5.8 26.1 46.2
Standalone gross margin (%) 43.0 44.8 43.4 44.0 47.0 46.3 45.4 46.1 44.7
Standalone EBITDA growth (% YoY) (2.0) 25.2 12.4 13.4 (5.4) (57.2) 31.6 48.0 57.6
Standalone EBITDA margin (%) 18.2 24.9 20.4 24.0 20.0 19.1 25.4 28.2 21.6
Ess Ess revenue (INR mn) 589 512 585 590 508 257 555 726 934
Ess Ess revenue growth (%) 24.6 11.4 18.7 23.0 (13.9) (49.8) (5.1) 23.1 83.9
Ess Ess EBIT (INR mn) (34) (68) (81) (72) (73) (75) 1 10 (2)
Sleek revenue (INR mn) 602 566 625 672 520 264 619 808 925
Sleek revenue growth (%) 19.6 25.9 18.6 18.9 (13.7) (53.4) (1.0) 20.3 78.1
Sleek EBIT (INR mn) (104) (90) (75) (96) (149) (137) (43) (17) (150)
Source: Company
Segmental performance (consolidated)
Segment revenue (INR mn) Q4FY21 Q4FY20 YoY growth (%) Q3FY21 QoQ growth (%)
Paints 64,672 45,329 42.7 66,351 (2.5)
Home Improvement (both Sleek and Ess Ess) 1,859 1,027 81.0 1,534 21.2
Total 66,531 46,356 43.5 67,885 (2.0)
Segment PBIT (INR mn)
Paints 12,297 8,070 52.4 17,226 (28.6)
Home Improvement (both Sleek and Ess Ess) (151) (222) NM (8) NM
Total 12,146 7,848 54.8 17,218 (29.5)
PBIT margins (%)
Paints 19.0 17.8 121.1 26.0 -695
Home Improvement (8.1) (21.6) NM (0.5) NM
Total 18.3 16.9 132.6 25.4 -711
Source: Company
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Segmental performance (standalone)
Segment revenue (INR mn) Q4FY21 Q4FY20 YoY growth (%) Q3FY21 QoQ growth (%)
Paints 55,774 38,283 45.7 58,002 (3.8)
Home Improvement (only Ess Ess) 934 508 83.9 726 28.6
Total 56,708 38,790 46.2 58,728 (3.4)
Segment PBIT (INR mn)
Paints 11,756 7,418 58.5 16,139 (27.2)
Home Improvement (only Ess Ess) -2 (73) NM 10 NM
Total 11,754 7,346 60.0 16,148 (27.2)
PBIT margins (%)
Paints 21.1 19.4 169.9 27.8 -675
Home Improvement -0.2 (14.3) NM 1.3 NM
Total 20.7 18.9 179.0 27.5 -677
Source: Company
Q4FY21 conference call key takeaways
Overall
Total consolidated revenue increased by 43% YoY and EBITDA by 52% YoY with
an EBITDA margin expansion of 120bps YoY in Q4FY21.
Consolidated PAT surged by 81% YoY in Q4FY21.
Management mentioned that the repair cycles in their view have reduced from
6–7 years three years back to 4–5 years today.
Management saw sticky demand in the repair and renovation space, and a lot of
the demand was deferred to later part of Q3FY21 and Q4FY21.
Construction demand, which forms a major part of revenue, is dependent on an
uptick in real estate and is being watched closely by management.
Management believes that possible money constraints due to restrictions
coming up to combat the second wave might affect demand and the government
might have to step in to stimulate demand.
Domestic decorative business saw 48% YoY volume growth and 46% YoY value
growth in Q4FY21.
Tier 1 and 2 cities saw a pick-up in demand Q3-end onwards.
Tier 3 and other areas continued their strong momentum from previous quarter.
The quarter saw good volume growth each month and continuous improvement
in luxury product performance.
The company has paid dividends of INR17.85 per share giving a dividend payout
ratio of 56.1%.
Metro cities and tier 1 and 2 cities saw an uptick in performance, and the change
in product mix bought the volume and value growth gap to 2% for Q4FY21.
The company saw a 5% difference in value and volume growth for the whole year
FY21. Going ahead, management predicts the gap to hover within 3–5% in the
near term.
The company has gained most market share from the organised sector, and the
top 4 players during the first 9 months of the year FY21
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The company also gained some share from the unorganised sector, which faced
supply chain issues due to the pandemic during the year.
Management believes future volume growth will be driven by upgrading
consumer to emulsions, improved penetration in tier 3 and lower-tier regions,
gains from increased demand for undercoating and primers due to a general
decrease in construction quality.
International business
Asia, the Middle East and Africa businesses saw a robust performance.
All units posted a double-digit increase in revenue on a YoY basis.
Asia and Africa region saw dip of 51% YoY and 40% YoY, respectively, in PBT in
Q4FY21.
Ethiopia, Bahrain, Indonesia and South Pacific were the only exceptions.
Waterproofing and luxury emulsions did well in these markets.
The company introduced its Safe Painting service across markets, which gained
traction.
Institutional business
The auto sector showed some momentum in Q4FY21.
PPG-AP and AP-PPG saw 39% YoY growth and 63% YoY growth in revenues in
Q4FY21
Growth was led by Industrial liquid paints and powder segments.
Both PPG-AP and AP-PPG businesses took a hit on margins due to adverse
material prices.
Home improvement
Both components and full kitchens showed strong growth in Q4FY21, yielding
revenue growth of 84% YoY in the kitchen business for Q4FY21.
The projects segment uptick continued to Q4FY21.
Bath business saw revenue growth of 84% YoY in Q4FY21 led by a pick-up in
demand across segments.
Both kitchen (INR210mn loss in FY21 vs INR410mn loss in FY20) and bath
business (INR70mn loss in FY21 vs INR290mn loss in FY20) saw lesser PBT loss
levels for the overall year due to cost optimization and improving scale.
The company is focusing on improving volumes and developing the kitchen and
bath business to complement its home décor business in the short run and to
gradually improve profitability over medium term.
Margins
No price increase taken in Q4 so that the demand momentum is not affected,
despite raw material price pressure.
There has been an uptrend in raw material prices since December 2020-end.
The company took a price hike of 2.8% effective May 1st.
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More pricing action will be taken if inflation pressure continues.
Future pricing will be based not only on raw material price pressure, but also
demand situation and competitors.
Management is keen on developing better sourcing efficiencies, leveraging
technology and reducing overheads to protect margins.
Outlook and valuation: Shining bright; maintain ‘BUY’
The domestic paints industry commands strong pricing power, which is evident from
frequent price hikes amid inflationary raw material prices; moreover, price cuts
happen with a lag in a deflationary environment. Industry volume growth has a
strong correlation with GDP growth (1.5–2x). Recovery in GDP in FY22 should give
volumes a boost. Furthermore, innovation and strong repainting demand (90% of
total) are big drivers of growth. Besides, considering the industry’s low penetration
(~50% according to our analysis), growth potential remains huge.
APL has sharpened the focus on other allied segments such as waterproofing. The
entry in adhesives with bigger plans for home décor (Color Ideas, AP Homes) is an
additional growth trigger.
With raw materials being crude-linked and crude being inflationary, we believe, even
if the inflationary pressure returns, APL has pricing power to deal with it.
We expect distribution synergies between the home décor segment and the existing
paint distribution network to spur operating leverage. The GST rate cut has further
triggered a shift from the unorganised towards organised. Capacity expansion of
600,000KL bodes well for revenue growth.
We expect double-digit decorative volumes to sustain riding potential demand shift
from the unorganised segment (~30%). This, coupled with APL’s capability to hike
prices should help maintain margin.
We expect double-digit growth in decorative volumes to sustain, riding the potential
demand shift from unorganised segment (~30%). This coupled with APL’s capability
to hike prices should help maintain margin. Considering the beat on top line, we are
raising the TP to INR3,185 (from INR3,140) and retaining ‘BUY/SO’. The stock is
trading at 54.2x FY23E EPS.
One-year forward P/E
Source: Company
500
1,100
1,700
2,300
2,900
3,500
(IN
R)
65x
40x
45x
55x
70x
50x
60x
75x
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Standalone sales growth
Source: Company
Domestic decorative segment - Volume growth
Source: Company
Standalone EBITDA margin
Source: Company
-50.0
-30.0
-10.0
10.0
30.0
50.0
Q4
FY1
7
Q1
FY1
8
Q2
FY1
8
Q3
FY1
8
Q4
FY1
8
Q1
FY1
9
Q2
FY1
9
Q3
FY1
9
Q4
FY1
9
Q1
FY2
0
Q2
FY2
0
Q3
FY2
0
Q4
FY2
0
Q1
FY2
1
Q2
FY2
1
Q3
FY2
1
Q4
FY2
1
(%)
-50.0
-30.0
-10.0
10.0
30.0
50.0
Q4
FY1
7
Q1
FY1
8
Q2
FY1
8
Q3
FY1
8
Q4
FY1
8
Q1
FY1
9
Q2
FY1
9
Q3
FY1
9
Q4
FY1
9
Q1
FY2
0
Q2
FY2
0
Q3
FY2
0
Q4
FY2
0
Q1
FY2
1
Q2
FY2
1
Q3
FY2
1
Q4
FY2
1
(%)
0.0
6.0
12.0
18.0
24.0
30.0
Q4
FY
17
Q1
FY
18
Q2
FY
18
Q3
FY
18
Q4
FY
18
Q1
FY
19
Q2
FY
19
Q3
FY
19
Q4
FY
19
Q1
FY
20
Q2
FY
20
Q3
FY
20
Q4
FY
20
Q1
FY
21
Q2
FY
21
Q3
FY
21
Q4
FY
21
(%)
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A snapshot of standalone business
Year to March Q4FY21 Q4FY20 % Change Q3FY21 % Change
Net sales 56,708 38,790 46.2 58,728 (3.4)
COGS 31,356 20,560 52.5 31,628 (0.9)
Gross Profit 25,352 18,230 39.1 27,100 (6.5)
Staff costs 2,992 2,372 26.2 2,809 6.5
Other expenditure 10,136 8,100 25.1 7,749 30.8
Total expenditure 13,128 10,472 25.4 10,558 24.3
EBITDA 12,224 7,758 57.6 16,542 (26.1)
Depreciation 1,929 1,722 12.1 1,690 14.1
EBIT 10,295 6,037 70.5 14,852 (30.7)
Interest 246 193 27.2 168 46.7
Other income 986 651 51.4 1,214 (18.8)
PBT 11,035 6,495 69.9 15,898 (30.6)
Exceptional item 0 332 NA 0 NA
Tax expenses 2,839 1,642 72.9 4,019 (29.4)
Net profit 8,196 4,521 81.3 11,879 (31.0)
As % of net revenues
COGS 55.3 53.0 229 53.9 144
Staff expenses 5.3 6.1 (84) 4.8 49
Others 17.9 20.9 (301) 13.2 468
EBITDA 21.6 20.0 156 28.2 (661)
PAT 14.5 11.7 280 20.2 (577)
Tax rate 25.7 25.3 45 25.3 45
Source: Company
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Consolidated financial snapshot (INR mn)
Year to March Q4FY21 Q4FY20 % change Q3FY21 % change FY21 FY22E FY23E
Net sales and operating income 66,514 46,356 43.5 67,885 (2.0) 2,17,128 2,55,841 2,86,578
Cost of goods sold 37,793 25,106 50.5 37,285 1.4 1,20,972 1,42,175 1,57,594
Employees' remuneration 4,121 3,356 22.8 3,883 6.2 15,408 17,262 19,385
Other expenditure 11,417 9,298 22.8 8,839 29.2 32,192 38,713 44,068
Total expenditure 53,332 37,760 41.2 50,006 6.7 1,68,572 1,98,150 2,21,048
EBITDA 13,183 8,596 53.4 17,879 (26.3) 48,556 57,691 65,530
Depreciation 2,134 1,945 9.7 1,932 10.4 7,913 8,660 9,160
EBIT 11,049 6,651 66.1 15,947 (30.7) 40,643 49,031 56,370
Interest Expense 299 257 16.4 211 41.3 916 991 931
Other income 754 558 35.1 979 (23.0) 3,031 4,011 4,498
Profit Before Tax 11,505 6,953 65.5 16,715 (31.2) 42,758 52,051 59,938
Provision for Tax 2,864 2,190 NM 4,314 (33.6) 10,976 13,377 15,404
Minority Interest 59 40 47.7 253 (76.8) -286 -580 -668
Reported Profit 8,699 4,803 81.1 12,654 (31.3) 32,068 39,254 45,202
Adjusted Profit 8,699 4,803 81.1 12,654 (31.3) 32,068 39,254 45,202
No. of Shares outstanding (mn) 959 959 959 959 959 959
Adjusted Diluted EPS 9.1 5.0 81.1 13.2 (31.3) 33.4 40.9 47.1
as % of net revenues 0.1 0.1 0.1 0.1 0.1 1.1 1.1 1.1
COGS 56.8 54.2 266 54.9 190 55.7 55.6 55.0
Staff expenses 6.2 7.2 (104) 5.7 48 7.1 6.7 6.8
Others expenditure 17.2 20.1 (289) 13.0 415 14.8 15.1 15.4
EBITDA 19.8 18.5 128 26.3 (652) 22.4 22.5 22.9
EBIT 16.6 14.3 226 23.5 (688) 18.7 19.2 19.7
Adjusted Profit 13.2 10.4 272 19.0 (585) 14.6 15.1 15.5
Tax rate 24.9 31.5 (660) 25.8 (91) 25.7 25.7 25.7
Source: Company, Edelweiss Research
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Company Description
APL is the largest paints company in India and figures among the top 10 players in
the world. The decorative segment accounts for almost 80% of the overall paints
market. Paints sales in domestic and international markets contributed 81% and
13%, respectively, to the company’s consolidated revenue; chemical sales
accounted for the balance. Among APL's international businesses, Asia contributes
the lion’s share at 49% to revenue, Africa and Middle East contributes 21% and 24%
respectively.
Investment Theme
The paints industry is expected to post robust volume growth led by strong
repainting demand and from construction. Growth in the repainting segment,
accounting for about ~75% of decorative demand, is on account of good demand in
rural and small towns. Further, anticipated growth in construction activity over the
next five years creates opportunity for fresh painting. APL is expected to grow ahead
of the market on account of its pricing strategy at the lower end, higher growth in
premium products, brand equity and distribution strength. However, moderation in
real estate and auto segments can act as barrier.
Key Risks
A slowdown in the economy is the biggest risk for the paints industry, as about 75%
of demand for decorative paints arises from repainting, which, in turn, depends
heavily on the country’s economic condition.
A rise in crude oil price and INR depreciation could hurt APL's margin as crude
derivatives account for majority of APL's input costs
Edelweiss Securities Limited
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Additional Data Management
MD and CEO Mr. Amit Syngle
CFO Mr. R J Jeyamurugan
Non-Exe Director Mr. Abhay Vakil
Non Ex Chairman Mr. Ashwin Dani
Auditor Deloitte Haskin & Sells
Holdings – Top 10* % Holding % Holding
Teesta Retail 4.90 Axis AMC 0.77
LIC 2.92 Icici Pru AMC 0.68
Sbi Funds 1.28 Jpmorgan Chase 0.64
Blackrock 1.27 Motilal Oswal A 0.37
Vanguard 1.12 Uti AMC 0.37
*Latest public data
Recent Company Research Date Title Price Reco
22-Feb-21 Correction overdone; Company Update
2,387 Buy
17-Feb-21 Shining bright; Company Update 2,450 Buy
21-Jan-21 Festive push cheers up volumes; Result Update
2,716 Buy
Recent Sector Research Date Name of Co./Sector Title
26-Apr-21 Consumer discretionary
Regulations: Nipping the butt in the bud; Sector Update
15-Mar-21 United Spirits Gradual recovery underway; Company Update
05-Mar-21 Pidilite Robust recovery; margin pressure ahead; Company Update
Rating Interpretation
Source: Bloomberg, Edelweiss research
Daily Volume
Source: Bloomberg
Rating Distribution: Edelweiss Research Coverage
Buy Hold Reduce Total
Rating Distribution* 166 57 20 244
>50bn >10bn and <50bn <10bn Total
Market Cap (INR) 196 54 3 253
*1 stocks under review
Rating Rationale
Rating Expected absolute returns over 12 months
Buy: >15%
Hold: >15% and <-5%
Reduce: <-5%
TP1,562
TP2,075
TP3,140
1125
1530
1935
2340
2745
3150
May-18 Nov-18 May-19 Nov-19 May-20 Nov-20
(IN
R)
APNT IN Equity Buy Hold Reduce0
4
8
12
16
20
May-18 Nov-18 May-19 Nov-19 May-20 Nov-20
(Mn
)
ASIAN PAINTS
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