The stocks of Asian Paints Limited, a market leader in the paint industry, have shown slight gains of 0.50 percent today trading at Rs 3,314 as compared to the previous closing levels of Rs 3,297.70. The shares, year-to-date, have gained around 9 percent ranging from Rs 3,047.25 in January 2023 to the current price levels.
In the month of April 2022, the company had acquired a 49% stake in a private company named ‘Obgenix Software’ and also informed that the remaining 51 percent would be acquired in a timely manner complying with the definitive documents. The selling party was the company’s promoters.
Providing an update on the same, the company, through a regulatory filing with the exchange dated 23rd June 2023, informed that it has acquired an additional stake of 11 percent for a consideration of approximately Rs 54 crores. Now, with the additional stake, Asian Paints holds a 60 percent stake thereby becoming a subsidiary company.
The latest consolidated financials of the company represents an operating revenue of Rs 34,488 crores as compared to Rs 29,101 crores of revenues in the previous financial year. Likewise, the net profits went up from Rs 3,053 crores during FY21-22 to Rs 4,101 crores in FY22-23.
The profitability metrics, in addition to the above, have shown favourable movements with the return on equity (ROE) moving from 21.94 percent during FY21-22 to 25.67 percent in FY22-23 and the return on capital employed (ROCE), in the same time period, moving from 28.33 percent to 32.33 percent.
The shareholding pattern data exhibit the promoters holding a 52.63 percent stake, and Foreign Institutional Investors (FIIs) holding a 17.02 percent stake in the company.
Founded in 1942, Asian Paints Limited, along with its subsidiaries, is engaged in the process of manufacturing and distributing paints, home-decoration products, coatings, etc in Asia, South-pacific, and the Middle-East regions. The company rules the paint industry in India with around 60 percent market share.
Written by Amit Madnani
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