Shalimar Paints vs Asian Paints Which Is More Profitable?

Shalimar Paints and Asian Paints are two of the leading paint companies in India. While both companies operate in the same industry, they have distinct differences in terms of market share, product offerings, and financial performance. Shalimar Paints, established in 1902, has a long-standing presence in the market but has struggled to compete with the dominant player, Asian Paints. Asian Paints, on the other hand, has consistently outperformed its competitors and is considered a top choice for investors looking to capitalize on the growth potential of the paint industry.

Shalimar Paints or Asian Paints?

When comparing Shalimar Paints and Asian 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 Shalimar Paints and Asian 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. Shalimar Paints has a dividend yield of -%, while Asian Paints has a dividend yield of 1.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Shalimar Paints reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Asian Paints reports a 5-year dividend growth of 24.29% 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 Shalimar Paints P/E ratio at -10.03 and Asian Paints's P/E ratio at 48.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Shalimar Paints P/B ratio is 2.31 while Asian Paints's P/B ratio is 12.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Shalimar Paints has seen a 5-year revenue growth of 0.29%, while Asian Paints's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shalimar Paints's ROE at -25.50% and Asian Paints's ROE at 28.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹106.59 for Shalimar Paints and ₹2506.00 for Asian Paints. Over the past year, Shalimar Paints's prices ranged from ₹100.99 to ₹221.60, with a yearly change of 119.43%. Asian Paints's prices fluctuated between ₹2506.00 and ₹3422.95, with a yearly change of 36.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.