Asian Paints vs Shalimar Paints Which Performs Better?

Asian Paints and Shalimar Paints are two leading companies in the paint industry in India. Asian Paints is a dominant player with a strong market presence and a wide range of products, while Shalimar Paints has been making strides in recent years with new innovation and growth strategies. Investors are constantly comparing the performance of these two stocks to make informed decisions on their investment portfolio. This comparison explores the financial performance, market share, and growth potential of Asian Paints and Shalimar Paints stocks.

Asian Paints or Shalimar Paints?

When comparing Asian Paints and Shalimar 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 Shalimar 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 1.35%, while Shalimar Paints has a dividend yield of -%. 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, Shalimar Paints reports a 5-year dividend growth of 0.00% 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 50.49 and Shalimar Paints's P/E ratio at -11.56. 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 12.80 while Shalimar Paints's P/B ratio is 2.82.

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 Shalimar Paints's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asian Paints's ROE at 24.92% and Shalimar Paints's ROE at -23.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2354.00 for Asian Paints and ₹113.60 for Shalimar Paints. Over the past year, Asian Paints's prices ranged from ₹2354.00 to ₹3422.95, with a yearly change of 45.41%. Shalimar Paints's prices fluctuated between ₹97.00 and ₹221.60, with a yearly change of 128.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.