Saturday, December 25, 2010
Top Stock Pick: Asian Paints
Asian Paints (NSE:ASIANPAINT) is the largest paint company in India and is in the business of making and selling decorative and industrial coatings. It has a market cap of Rs. 28,430 crores. Based on recent reported quarterly results(Q3 2010), sales growth (YoY) was 6%, and EPS (YoY) dropped 21%. Asian Paints has a ROE of 49.7% and ROCE of 90.3 %. The ROE and ROCE is very high and indicative of a superior business. The 3-year earnings growth is 41.7%, and 3-year sales growth is 22.2%. The debt-to-marketcap ratio is 0. The P/E is 37.4 (TTM) and the company has to continue to deliver to maintain such a high valuation. The company faces cost pressures, but the demand is there. The relative price performance of Asian Paints measured over the last 2 years puts it in the top 20% of all stocks.
Technically, the daily & weekly charts are stellar. After a recent consolidation phase, the stock moved up in a dull market. A target of 3400-3500 is very likely in the next few months. See latest tweet buzz below the charts. Also, see slide show on stocks in chemicals sector.
Daily Candlestick Charts
Weekly Candlestick Charts
Recent Twitter & News buzz!!
Third party sources for more analysis on this stock.
1. http://www.google.com/finance?q=NSE:ASIANPAINT
2. http://nseindia.com/marketinfo/companyinfo/eod/resHistory.jsp?symbol=ASIANPAINT
3. http://www.capital4.com/stocks/ASIANPAINT/valuation-snapshot#bottom_table_anchor
Labels: Asian Paints, ASIANPAINT, world of colours, www.asianpaints.com
by earlygains at Saturday, December 25, 2010 |
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