Asian Paints vs Kansai Nerolac Paints Which Performs Better?

Asian Paints and Kansai Nerolac Paints are two of the leading players in the Indian paint industry. Both companies have a strong presence in the market and a loyal customer base. Asian Paints has a long-standing reputation for quality and innovation, while Kansai Nerolac Paints is known for its wide range of products and competitive pricing. Investors looking to invest in the paint sector may consider comparing the stocks of these two companies to make an informed decision.

Asian Paints or Kansai Nerolac Paints?

When comparing Asian Paints and Kansai Nerolac Paints, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Asian Paints and Kansai Nerolac Paints.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Asian Paints has a dividend yield of 1.36%, while Kansai Nerolac Paints has a dividend yield of 0.48%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Asian Paints reports a 5-year dividend growth of 24.29% year and a payout ratio of 0.00%. On the other hand, Kansai Nerolac Paints reports a 5-year dividend growth of 0.76% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Asian Paints P/E ratio at 50.11 and Kansai Nerolac Paints's P/E ratio at 34.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Asian Paints P/B ratio is 12.70 while Kansai Nerolac Paints's P/B ratio is 3.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Asian Paints has seen a 5-year revenue growth of 0.85%, while Kansai Nerolac Paints's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asian Paints's ROE at 24.92% and Kansai Nerolac Paints's ROE at 11.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2380.70 for Asian Paints and ₹260.60 for Kansai Nerolac Paints. Over the past year, Asian Paints's prices ranged from ₹2380.70 to ₹3422.95, with a yearly change of 43.78%. Kansai Nerolac Paints's prices fluctuated between ₹251.85 and ₹357.30, with a yearly change of 41.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.