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Asian Paints Ltd Company Details Report

Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai, Maharashtra. It manufactures a wide range of paints for decorative and industrial use. In decorative paints, the company is present in interior wall finishes, exterior wall finishes, adhesives, waterproofing, undercoats, enamels and wood finishes. In the industrial segment it operates through two joint ventures (JV) PPG Asian Paints Pvt. Ltd. (PPG-AP) for automotive, marine and packaging coatings and Asian Paints PPG Pvt. Ltd. (AP-PPG) for industrial protective coatings, powder coatings, floor coatings and road markings. In the home décor segment, it offers solutions that includes paints, adhesives, wall coverings, modular kitchens and wardrobes, textures painting aid, bath fittings and sanitaryware, waterproofing, decorative lightings (through White teak), wall stickers, furniture, furnishings & rugs, UPVC (unplasticized polyvinyl chloride) windows & door systems (through Weatherseal) and mechanized tools. As on 31st March 2025, company’s installed in-house decorative paint manufacturing capacity in India is 22,90,000 kilo litre (KL)/annum (over and above, it has also tied up with outside processing centres for manufacture and purchase of certain products). It has 26 in-house paint manufacturing facilities worldwide. It caters to over ~1,69,000 touch-points across India. It operates in emerging economies through its seven corporate brands, viz. Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints.

Segment wise revenue

Region wise revenue

#SALES #GROWTH

Revenue in FY25 declined by 4.5% YoY at ₹33,906 cr, impacted by weak consumer demand and slowdown in urban market. Decorative & Industrial paints witnessed value de-growth of ~5% YoY, whereas volume growth was ~3%. Industrial segment outpaced the decorative segment, with superior performance in tier-3 and tier-4 cities. The home décor segment reported subdued performance driven by ~20% YoY decrease in White Teak due to the impact of BIS (Bureau of Indian Standards) specifications as majority of the inputs are sourced from China. Weatherseal was impacted by the pricing scenario in the B2B (business-to-business) segment. Further, international business was impacted by currency devaluation in Africa. Middle East posted strong double-digit growth, especially markets of UAE.

#EBITDA #GROWTH

In FY25, EBITDA stood at ₹6,006 cr v/s ₹7,585 cr in FY24, translating to a de-growth of ~21%. This was mainly driven by inferior product mix and ~12% increase in employee cost. Gross profit reduced by ~7% to ₹14,390 cr.

#EBITDA #MARGIN

In FY25, EBITDA margin stood at 17.7%, contracting by 365 bps YoY. Gross margin was down by 96 bps YoY at 42.4%. The company initiated ~1.2% price hike across its portfolio.

#PAT #GROWTH

In FY25, PAT was down by ~33% YoY at ₹3,569 cr v/s ₹5,425 cr in FY24. This included loss of ~₹202 cr towards impairment provision on goodwill on consolidation & tangibles in White Teak. Additional ~₹56 cr was recognised towards forex loss in a subsidiary due to currency devaluation in Ethiopia, impairment loss of ~₹84 cr towards the divestment of Indonesia business and ~₹21 cr towards the acquisition of CauseWay Paints, Sri Lanka. These translated to a total exceptional loss of ₹363 cr during the year. PAT was further impacted by higher finance cost and increased depreciation expense. Tax rate for FY25 was 27.3%, owing to deferred tax adjustment and exceptional loss. 5 Year CAGR: 7.8%

#PAT #MARGIN

In FY25, PAT margin contracted to 10.5% from ~15% in FY24. However, excluding the exceptional items, PAT margin was at ~12%. The reduction is primarily owing to increased employee cost and depreciation & amortisation expense.

#ROCE

In FY25, ROCE declined to 27%. The decline can be attributed to weak operational performance and exceptional item impact. During the year, it added ~9,000 retail touchpoints across the country, taking the total to 1,69,000. It also expanded the Mysuru facility from 3,00,000 KL/per annum to 6,00,000 KL/ per annum.

#SECTOR POTENTIAL

• The domestic paint industry consisting of the decorative and industrial paint segment is estimated at over ~₹80,000 cr in FY25. The decorative paint segment constitutes 75% and industrial paint segment makes up the balance 25% of the domestic paint market. • The Indian coatings market is projected to achieve a revenue CAGR of 7.4% over the period 2025–2027, significantly outpacing the global coatings market, which is expected to grow at a CAGR of 3.9% during the same period. • 75% of the Indian paint industry is dominated by the organized players and rest by the unorganized players. Increased customer awareness has led to a shift in preference from unorganized to organized players, reducing dealer influence and making it imperative to establish a strong brand image. • The Indian paint industry, particularly the decorative segment, continued to face headwinds in FY25 due to heightened competition and subdued demand. The organized decorative paint sector recorded negative growth, impacted by intensified competition from both established and new players. Additionally, the year was marked by a slowdown in new construction activity, reduced renovation intensity, and weaker-than-expected B2B demand. Despite these headwinds, recent trends indicate early signs of recovery. • The Indian paint industry has been witnessing a gradual shift in the preferences of customers from the traditional whitewash to high-quality paints like emulsions and enamel paints, which is providing the basic stability for growth of Indian paint industry. • Crude oil forming an essential component of raw material for paint companies, any volatility in its price will need to be critically monitored to cushion the impact on profitability. Recently, the prices of crude oil saw a substantial decline. • The government has applied anti-dumping duty on Rutile (titanium dioxide) originating in or exported from China. • As per RBI (Reserve Bank of India) bulletin, rural demand is expected to continue the growth momentum and construction activity is poised to increase.

#FUTURE #OUTLOOK

• The company is investing towards VAM (vinyl acetate monomer) and VAE (vinyl acetate ethylene emulsion) in Dahej, Gujarat. Capex towards the same is ₹3,250 cr. This shall be partially operational by March-April 2026 and fully operational by April 2027. • A white cement plant is being set up in Fujairah, Dubai with an annual production capacity of ~2.75 lakh tonnes. The plant is expected to be operational by June 2025. • Towards the greenfield water-based paint manufacturing facility (Madhya Pradesh) with a capacity of 4 lakh kl per annum, the management stated that it has completed land acquisition (~166 acres); the statutory approval process is work in progress and they are targeting completion by CY28. The investment towards this would be ~₹2,000 cr. • The brownfield expansion in Ankleshwar, Gujarat is ongoing and will increase the plant’s capacity from 1,30,000 kilolitres (KL) in FY25 to 2,50,000 KL per annum. • On 14th February 2025, Asian Paints International Private Limited (APIPL), Singapore, a wholly-owned subsidiary, along with PTAPI (PT Asian Paints Indonesia) and PTAPCI (PT Asian Paints Color Indonesia), entered a share purchase agreement with Berger Paints Singapore Pte Limited, Singapore, for the sale of 100% stake in PTAPI and PTAPCI for consideration of SGD 7.5 million (~₹48 cr). The loss arising from the divestment was recorded as exceptional item in Q4 FY25. • The company aims to be in the top 2 player in the international markets, including Bangladesh and Sri Lanka. • Going forward, the B2B segment is expected to increase coupled with uptick in mid-luxury housing.

Asian Paints 2200-2400
Expected level 3000
Support 1900

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Sunteck Realty Ltd Company Details Report

Sunteck Realty Ltd is one of the fastest growing real estate development companies of the country based in Mumbai. SRL has its own in-house project management team and strategic tie-ups with domestic/international contractors, architects, engineers and brand partners. The company focuses on designing, developing, and managing commercial and premium residentials. The company focuses on a city centric development well spread-out across Mumbai Metropolitan Region (MMR). It has acquired more than 50 million sq ft with a Gross Developmental Value (GDV) of ₹39,370 cr. The company has entered into various Joint development agreement (JDA) projects which has helped the company better manage its financials in a disciplined manner and remain asset light. The company has 50:50 JV with Piramal Realty called Piramal Sunteck Realty Pvt Ltd which was formed in 2007. Sunteck offers 6 brands under the name of Signature (Uber Luxury Residencies raging from ₹30 cr - ₹40 cr), Signia (Uber Luxury Residencies raging from ₹5 cr - ₹20 cr), Sunteck City, Sunteck Beach Residences and Sunteck Sky Park (Upper - Mid Income Large mixed-use development between ₹1 cr - ₹3 cr), Sunteck World (Lower Mid Income between ₹25 lac - ₹1.25 cr) & Sunteck (Commercial) which allows them to be present across pricing spectrum.
It is focusing on middle income and aspirational group where they intend to offer well designed and quality apartments the pre-sales mix also reflects. The company follows project completion method of revenue recognition as per IND AS 115 where presales and collections are based on bookings and customer advances. Presales convert to revenue at project completion. The collections for FY25 were ₹1,255 cr of which ₹421 cr came from Uber luxury, ₹294 cr from Premium luxury, ₹435 cr from Aspirational luxury and others at ₹105 cr.

Revenue breakup

Collection Efficiency

Pre sales break up

#SALES #GROWTH

In FY25, the company registered a revenue of ₹853 cr backed by revenue recognition of Sunteck World projects and BKC (Bombay Kurla Complex) projects. They have launched a new phase at their Naigaon project in Sunteck UltraWorld with a potential GDV (gross developmental value) of ₹600 crore. The launch price is ~₹10,000 per sq. ft. The total business development GDV (gross developmental value) for the company stands at ~₹40,000 crore, which has more than doubled in the last 2 years. In FY24, the Uber Luxury project at BKC generated sales of ₹245 cr worth of stock v/s ₹200 cr of stock sold together in last 3 years. Pre-sales for the year was lower than their guidance of ~₹2,000 cr due to delay in launch of new tower at Mira Road. The revenue registered during the year was ₹565 cr. The company recognized revenue to the tune of ₹284 cr from Sunteck Maxxworld at Naigaon with project level margin of 30%.

#EBITDA #GROWTH

In FY25, the EBITDA was ₹185.8 cr. In FY24, the company reported an EBITDA of ₹117.3 cr. Cost of construction and development contributes the highest of the total expense which majorly includes Land and development rights, contracting costs, Liaisoning and approval costs, design and consultancy fees. Whereas in case of other expenses, Advertisement and brokerage, legal and professional fees, rates and taxes and facility management are the major contributors.

#PAT #GROWTH

In FY25, the company reported consolidated PAT of ~₹148.5 cr of which profit of ₹1.84 cr is from shares associate. In FY24, the company reported profit of ₹70.8 cr. Whereas PAT from joint venture associates stands at ₹0.10 cr.