Asian Paint Ltd is a large-cap with a market capitalization of Rs 3,04,545.30 crore, On Friday the company shares were trading at Rs 3,175 a share, an increase of 3.3 percent from the previous close price.
Petroleum-based raw materials are used extensively in the production of paint. Paint prices are inversely correlated with margins, and the price of crude oil is directly related to the cost of paint. The cost of manufacturing goes up and margins go down as crude oil prices rise.
Asian Paints emerged as the top gainer in today’s section in the nifty 50 Index after oil prices dropped around 5 percent on Thursday to their lowest in four months. The stock gained nearly six percent since the beginning of this year.
Asian Paint Ltd revenue increased by 0.25 percent from Rs 8,457.57 Crore in Q2FY23 to 8,478.57 Crore in Q2FY24. During the same period, net profits increased by 53 percent from Rs 781.74 crore to Rs 1,203.26 crore.
Leading brands like Asian Paints, Sleek, Berger, Weather Seal, Apco, Taubman, Kadisco, Scib, and others are housed under Asian Paints Group, which leads the market with a 53 percent market share, and non-automotive industry coatings business grew with our focus on the oil and gas sector, road markings, and flooring and crossed the ₹ 1,000 Crores mark.
Asian Paint Ltd’s recent shareholding pattern, The Promoters of the company own 52.63 percent while Retail shareholders own a 19.67 percent stake in the company and Foreign Institutional Investors own a 17.65 percent stake.
The biggest retailer of interior decor in India is called Asian Paints. The business deals in wall paints, wall coverings, waterproofing, texture painting, wall stickers, adhesives, mechanized tools, modular kitchens, sanitaryware, lighting, and soft furnishings.
Written By:- Abhishek Singh
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