Asian Paints DCF Analysis
Paints Industry Overview Indian Paints industry has grown by leaps and bounds over the last decade, largely supported by government's focus on housing and infrastructure development. The industry is mainly organized (~75%) and is expected to grow with double digit CAGR in the years to come. However, paints industry is heavily correlated with the economy's growth and is expected to witness a slowdown in case India's GDP growth rate fizzles out. Broadly speaking, there are two segments within the paints industry - Decorative segments - Paints used to paint our home's interior/exterior walls Industrial segment - Coatings using for cars, heavy machinery etc. Unlike international markets, Indian market is dominated by decorative paint segment, contributing about 75% to the total market size . Major capex news in the industry: Aditya Birla's Grasim to invest Rs.100 bn to enter into the paints segment Asian Paints announced Rs. 87 bn capex for greenfield, brownfield ...