Asian Paints Limited (ASIANPAINT.NS) stock analysis

In our weekly check, Asian Paints Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2.

About Asian Paints Limited

Asian Paints Limited is a Basic Materials company (Chemicals - Specialty) based in India, listed on NSE as ASIANPAINT.NS.

What our checks show for ASIANPAINT.NS

Red flags

• Operating profit does not cover the interest bill (0.3x): interest is paid from cash or new debt.
• The dividend takes 5328% of profit: little cushion if profit falls.

Warning signs

• Revenue grew only 1% a year over the last 3 years.
• The price is 46 times earnings (P/E): the market already pays for a lot of future growth.
• The stock has fallen as much as 45% from a peak. Would you have held through that?

Strengths

• Net debt is only 0.4x a year of EBITDA: the balance sheet has room.
• The net margin rose by 1.7 points over 5 years, to 12.2%.
• The gross margin is 43.7% and has risen by 7.3 points: pricing power is holding.
• Operating cash flow is 1.64x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 14.8% a year over the next years.
• Free cash flow is 15.8% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2027-01-19

Similar companies

6988.T · SOLARINDS.NS · 4612.T · PIDILITIND.NS · SRF.BO · FLUOROCHEM.NS

Questions

What grade does Asian Paints Limited (ASIANPAINT.NS) have?

In our weekly check, Asian Paints Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ASIANPAINT.NS stock?

This week's biggest flags for Asian Paints Limited: Weak interest cover, Dividend stretched, Weak revenue growth. In total 5 of 25 checks show a warning or a red flag.

What does Asian Paints Limited do?

Asian Paints Limited is a Basic Materials company (Chemicals - Specialty) based in India, listed on NSE as ASIANPAINT.NS.

When does Asian Paints Limited report earnings next?

The next earnings report is expected on 2027-01-19. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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