Asian Paints's intrinsic value using Intellectual Capital analysis

Asian Paints

BSE : 500820

|

NSE : ASIANPAINT

Industry : Paints

|

ISIN : INE021A01026

|

FreeFloat : 50.00%

|

FnO : Yes

|

LotSize : 300

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 | BSE Low Volatility | BSE Momentum | BSE Quality | Nifty Low Volatility 50 | Nifty100 Alpha 30 | Nifty100 Low Volatility 30 | Nifty100 Quality 30 | Nifty200 Momentum 30 | Nifty200 Quality 30 | BSE 100 ESG | BSE CARBONEX | Nifty100 Enhanced ESG | Nifty100 ESG | BSE India Manufacturing | Nifty India Consumption

Intellectual Capital (IC)	30,145.14
Net Worth (NW)	13,229.15
Intrinsic Worth (IW)	43,374.29
Market Cap (MC)	243,386.80
Economic Value Added	434.44

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	69.50%
IC Gross Margin (EBITDA/IC)	18.92%
IC Net Margin (NPT/IC)	11.40%
Knowledge Turnover (Sales/IC)	0.77
Market to Intrinsic Value (MC/IW)	5.61

As Of	Intrinsic Value	Market Price
31 Mar 2021	Rs. 452.19	Rs. 2,537.40
12 May 2021	-	Rs. 2,556.20

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 2,565.69	Sell	Avoid
KB > 50% : Yes		50 DMA : Rs. 2,503.60
0 < M2IV < 1 : No		Vol-Price trend : Falling

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-18
C
4398.59
4460.24
849.27
848.37
848.28
571.31
627.86

Sep-18
C
4639.05
4702.37
855.53
760.79
748.67
506.00
465.80

Dec-18
C
5293.99
5339.20
1103.61
988.25
973.46
647.15
612.61

Mar-19
C
5018.21
5075.08
885.71
755.64
740.32
487.45
492.04

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

* C - Consolidated, S - Standalone