Share price of India’s leading paint and decor company moved up by nearly 1.81% to Rs. 2,878.6 in the morning trading session of March 7th, compared to its previous close of Rs. 2,8827.3 on NSE, after the company announced signing an agreement to set up a new manufacturing facility.
With a market capitalisation of Rs. 2.75 lakh crores, in the last one year, the Asian Paints shares has delivered positive returns of about 0.51 percent. However, it has given nearly 11.5 percent of negative returns in the last six months, and more than 15.3 percent, so far in 2024.
According to recent regulatory filings with the stock exchanges, Asian Paints (Polymers) Private Limited (APPPL), a wholly-owned subsidiary of Asian Paints Ltd., entered into requisite agreements with Gujarat Chemical Port Limited (GCPL).
The agreement is to set up an Ethylene storage and handling facility, as Ethylene is a key raw material for the manufacture of VAM/VAE.
Located in Dahej, Gujarat, the facility will manufacture Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM), and the estimated cost is Rs. 2,100 crore for setting up the facility.
APPPL will give a security deposit of Rs. 460 crore to GCPL, which will be refunded over the course of 17-18 years, as a part of the agreement with GCPL.
GCPL, a joint venture promoted by the Gujarat Government, is a strategic commercial port located in Dahej. It owns and operates a network of shore-based tank farm installations used for the receipt, storage, and handling of bulk chemicals.
In terms of financials, the revenue from operations of the company grew by nearly 7.35% QoQ from Rs. 8,479 crore in Q2 FY23-24 to Rs. 9,103 crore in Q3 FY23-24, accompanied by a 19.72% increase in the net profit from Rs. 1,232 crore in Q2 FY23-24 to Rs. 1,475 crore in Q3 FY23-24.
Asian Paints Limited, founded in 1942, is the leading paint and decor company in India and is one of the top ten decorative coatings companies in the world. It is ranked 2nd in Asia and 8th among the top coating companies worldwide.
Since 1967, the firm has been the industry leader in paints, manufacturing a wide range of paints for both decorative and industrial uses.
Written by Shivani Singh
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