Pick of the Week Asian paint

1. Asian Paint Ltd.
 Asian Paints Limited is an Indian chemicals company headquartered in Mumbai, India. It manufactures paints
for decorative and industrial use. Asian Paints is India's largest paint company and Asia's third largest paint
company, with a turnover of Rs 140 billion. Besides Asian Paints, the group operates around the world
through its subsidiaries Berger International Limited, Apco Coatings Limited, SCIB Paints and Taubmans.
 Asian Paints was established on 2 February 1942 by Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant
C. Dani and Arvind R. Vakil. They name their company 'The Asian Oil & Paint Company', a name that was
randomly picked from a telephone directory.
 Asian Paints manufactures and markets industrial and decorative coatings. Along with that the company also
provides home painting services and solutions. The company's key products and brands include the following:
Decorative paint: Interior wall paints, Exterior wall paints, Wood surface paints, Metals surface paints
Ancillaries: Wall primer, Acrylic Wall Putty, Exterior Wall Putty, Wood Primer.
 Asian Paints has acquired 30% stake in Dutch Boy Philippines from Berger International Limited (BIL), an
indirect subsidiary of Asian Paints. Asian Paints executed a conditional stock purchase agreement relating to
the sale of 427,000 shares of Dutch Boy Philippines, which ceases to be an associated company of BIL. Asian
Paints, Ltd. (APL) has entered into a 50:50 new joint venture agreement with PPG Industries, Inc. (PPG), a US-
based provider of paints, coatings and specialty products, to accelerate the growth of non-decorative
coatings business in India.
 Technical Outlook
 On daily chart, the stock has completed a “Bullish NEN-STAR Harmonic” pattern at 811.20 levels, the co-ordinates
of which are as follows:
 Technical Parameter: XA of the leg from 780 to 884.30, AB of the leg completed at 846.50 (i.e.127.2% of XA leg.),
BC of the leg from 892.50, and CD of the leg completed at 811.20 levels (i.e. 78.6% of XA and 161.8% of BC leg)
 Besides, stock has also managed to close above 200 DEMA (which placed at 816.60 level), which shows that long
term trend is up and could further accelerate its upside momentum.
 On daily chart, stock has formed “Bullish Harami” candlestick near the multiple support line, which is a sign of
bullish reversal.
 A momentum indicator RSI has moved above 40 levels on daily chart, which support our bullish view on the stock.
 Based on the mentioned technical setup, we believe that the stock could move towards 930 levels in few trading
sessions.
Company ASIANPAINT
Recommendation Buy
Sector : Paints & Varnishes
CMP : 830 & Upto 815
Price Potential : 930
Stop Loss (Closing Basis): 780
Mkt Cap (Rs. Cr.): 79,489
TTM EPS (Rs.) 16.13
TTM Sales (Rs. Cr.) 14,402
BVPS (Rs.) 55.89
Reserves (Rs. Cr.) 5,265
P/BV 14.83
PE 50.85
Bloomberg Code : APNT:IN
Reuters Code : ASPN.NS
TW = Twelve Months
TTM= Trailing 12 months
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: Asian Paint Ltd.
31st Oct, 2015
www.choiceindia.com *Please Refer Disclaimer on Website

2. Pick of the Week: Asian Paint Ltd.
31st Oct, 2015
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual FundsSEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
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Kunal Pamar (Research Associate)
kunal.pamar@choiceindia.com
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Amit Pathania (Research Associate)
amit.pathania@choiceindia.comVikash Chaudhri (Research Associate)
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Kunal Parmar
Digitally signed by Kunal Parmar
DN: cn=Kunal Parmar, o=Choice Equity
Broking Pvt Ltd., ou=Research Dept.,
email=kunal.parmar@choiceindia.com, c=IN
Date: 2015.10.31 16:30:56 +05'30'