Asian Paints's intrinsic value using Intellectual Capital analysis

Asian Paints

BSE : 500820

|

NSE : ASIANPAINT

Industry : Paints

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ISIN : INE021A01026

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FreeFloat : 48.78%

|

FnO : Yes

|

LotSize : 150

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty Alpha Low Volatility 30 | Nifty Alpha Quality Low Volatility 30 | Nifty Alpha Quality Value Low Voltlty 30 | Nifty Quality Low Volatility 30 | BSE Dividend Stability | Nifty Low Volatility 50 | Nifty100 Low Volatility 30 | Nifty100 Quality 30 | Nifty200 Quality 30 | BSE CARBONEX | NIFTY 100 ESG Sector Leaders | Nifty100 Enhanced ESG | Nifty100 ESG | BSE India Manufacturing | Nifty Housing | Nifty India Consumption | Nifty Non-Cyclical Consumer

Intellectual Capital (IC)	35,194.00
Net Worth (NW)	14,199.09
Intrinsic Worth (IW)	49,393.09
Market Cap (MC)	295,428.10
Economic Value Added	333.54

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	71.25%
IC Gross Margin (EBITDA/IC)	16.56%
IC Net Margin (NPT/IC)	9.23%
Knowledge Turnover (Sales/IC)	0.89
Market to Intrinsic Value (MC/IW)	5.98

As Of	Intrinsic Value	Market Price
31 Mar 2022	Rs. 514.94	Rs. 3,079.95
26 May 2022	----	Rs. 2,840.15
26 May 2022	----	2.10 0.07%

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 3,031.01	Accumulate	Buy
KB > 50% : Yes		50 DMA : Rs. 3,079.96
0 < M2IV < 1 : No		Vol-Price trend : Rising

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Jun-19
C
5130.63
5204.19
1242.00
1049.37
1022.62
672.09
673.01

Sep-19
C
5050.66
5155.82
1075.36
878.19
852.25
842.14
849.52

Dec-19
C
5420.28
5490.11
1278.43
1081.35
1057.28
779.71
812.74

Mar-20
C
4635.59
4691.39
919.38
724.88
699.22
480.25
497.23

Jun-20
C
2922.66
2969.75
517.06
325.89
305.76
219.61
170.31

Sep-20
C
5350.23
5432.86
1359.61
1166.03
1145.52
851.90
831.25

Dec-20
C
6788.47
6886.39
1911.06
1717.89
1696.76
1265.35
1249.87

Mar-21
C
6651.43
6726.84
1399.52
1186.17
1156.31
869.89
836.22

Jun-21
C
5585.36
5674.97
1000.65
800.06
778.58
574.30
576.36

Sep-21
C
7096.01
7234.21
1052.85
850.10
826.24
605.17
589.49

Dec-21
C
8527.24
8599.05
1629.08
1421.17
1393.72
1031.29
1022.36

Mar-22
C
7892.67
7973.06
1532.61
1327.50
1304.88
874.05
740.08

* C - Consolidated, S - Standalone