Asian Paints

[Rohit Chaudhary]

Asian paints have invested hugely on increasing its fixed asset by putting equity money and on the other hand they are paying off their debts. The top management expect a huge demand in future so they are expanding its capacity hugely. No doubt that paint industry is a high profit margin but its this a correct way to use up the liquidity amount of the company?

[Equity Section]

Rohit,

In my opinion, the Company derives its maximum revenue from consumers rather than B2B. In that case, if the Company is chasing demand by ramping up supply, its right as this Company is really growing at decent rates.

Still, what has been the 3 year CAGR of this Company? What has been the EBIDTA margins of this Company for the past 3 years?

Oct 7, 2015 20:12:09 GMT 5.5 Rohit Chaudhary said:

Asian paints have invested hugely on increasing its fixed asset by putting equity money and on the other hand they are paying off their debts. The top management expect a huge demand in future so they are expanding its capacity hugely. No doubt that paint industry is a high profit margin but its this a correct way to use up the liquidity amount of the company?

[Rohit Chaudhary]

looking at the present scenario it is completely fine but how has predicated the future, if the revenue of the company decreases due to any reason then company has no equity to fund its on going operation and to pay for its day to day activity cost.

EBITDA margin
2015- 12.10
2014- 11.25
2013- 11.02

CAGR of the company is around 14%