The Best Penny Stocks in India
Investing and trading on the stock market has the potential to generate profits.
Transform from Learner to Earner.
Open FREE* Demat Account21 May, 2021
8 min read
25891 Views
Asian Paints has emerged as one such stock investment opportunity. If the numbers are to be believed, there is still potential for the stock to continue its uptrend. Let’s take a closer look at the Asian Paints stock story.
There are several factors that have contributed to a ton of conversations and interest around Asian Paints. Brokerages in India and abroad and even certain newspapers in India are contributing to the increased popularity of this stock in recent times. Indian and foreign brokerages alike are putting up high target prices for Asian Paints stock.
The stock price has witnessed a steady rise over nearly two decades – this is typically seen as a green signal for long-term stock-market investors. For example, in 2008, the stock price was under Rs 100 and today the same stock is selling at a little over Rs 2500. The price even hit a little over Rs 2,700 towards the end of 2020 before hitting a series of price corrections in January 2021, after which it has continued on its prior upward trajectory.
There are several other factors that position Asian Paints as a potentially high earnings investment option and all of these factors are rooted in hard numbers. In the December quarter of 2020 – or the third quarter of the 2020-2021 fiscal – Asian Paints posted its highest ever margins and quarterly profit. Quarterly and annual reports are one of the popular lenses through which investors judge the long-term potential of stocks. The highlights of its performance in this quarter are as follows:
With a consistent upward trajectory and a correction that happened only a little over three months ago, it is logical that investors worry about whether the stock is overvalued. In fact, one might actually spot such questions on open forums if you look online. The expert take on this stand is that with companies that constantly demonstrate high innovativeness and constant growth, investors might not have to worry about a decline – especially if they plan to stay invested in the long term.
In fact, the best indicator of Asian Paints’ potential is how it fares against other paint companies in the country. We’re not going to try and convince you without the numbers – let’s take a few key stock market numbers into consideration
As you can see, Asian Paints scores ahead of its comp set in 6 of the 8 parameters that one might typically look at when buying stocks.
There is definitely a segment of investors who consider ethics and want to track who and what their capital supports. Asian Paints recently went the extra mile to sort out a dispute with the Karnataka government and local land-sellers, offering employment and business opportunities to the parties involved in the dispute. This went over and above the initial terms of the agreement. Stock prices fell marginally after announcements linked to the agreement emerged but picked up immediately after.
In conclusion, there does seem to be some justification in all the noise around Asian Paints. However, investors must put serious efforts into personally studying the stocks that they intend to buy. If you look at the Asian Paints stock graph, you will notice that the stock price has increased steadily and gradually over time – in other words, this does seem to be a better proposition for long-term investors. While things look admittedly inviting, do consider your risk appetite before investing and always divide up your capital across a few different asset classes (or investment types), and within those asset classes too, avoid putting all your eggs in a single basket. Always diversify your investment to minimize stock market risk.
Remember that anyone can invest – age group, gender, job profile, salary and location are no longer restrictions to your investing journey. You can kickstart your exciting investment journey with Angel Broking and get your trading and Demat account off the ground within just a few hours. You can get useful education on the Angel Broking website and via its convenient (and free of cost) mobile. When it comes to Asian Paints, for example, you can get not only a stock price graph (with up to 5 years’ worth of historical data) but also P&L, balance sheet, shareholding pattern, and quarterly reports. You can even benefit from a returns calculator.
How would you rate this blog?
Related Blogs
Translate the power of knowledge into action. Open Free* Demat Account
15 May, 2021
8 min read
The Best Penny Stocks in India
Investing and trading on the stock market has the potential to generate profits.
08 Jul, 2021
10 min read
The Success Story of Pharmeasy
Today, PharmEasy is a reputable and well-known firm whose aim is to become the best health care delivery platform in India.
29 Oct, 2021
7 min read
Sugar Stocks Down as Sensex Falls
Sugar stocks are indicative of important trends in the market. They are also an important cog in the industries sector of the economy. Read on to kno…
01 Apr, 2021
7 min read
Vodafone-Idea: What went wrong?
Mergers and acquisitions can turn the eyes of stock market investors towards the possible action that such large-scale actions can bring to the futur…
07 Jul, 2021
10 min read
Ixigo IPO: Ixigo Plans a 750 Crore IPO
Ixigo is a travel portal and it plans to host an IPO of between Rs 1500 crore to Rs 1800 crore later this year.
24 Feb, 2021
7 min read
Shree Cements: A lesson in Prudence
This article will help you take a deeper look into the rise of Shree Cements, through the lens of it’s stock performance over the past few years.
11 Jun, 2021
7 min read
Stock Picks Based on Q4 Results
As FY21 drew to a close, it was a déjà vu moment as lockdowns (although state-level), and a second wave of the COVID-19 pandemic defined investor beh…
06 Oct, 2021
5 min read
Byju’s IPO Plans
Currently, India's most valuable unicorn, online education provider Byju's, is in talks to raise $400 million to $600 million and then expedite plans…
13 Oct, 2021
6 min read
LIC Seeks to Appoint CFO
According to a notice on its website, the state-owned Life Insurance Corporation of India (LIC) is looking for a Chief Financial Officer ahead of an …
28 Dec, 2020
6 min read
The Rise of Reliance: as told through its stocks
Reliance Industries Limited (RIL) is India’s largest publicly traded company. Read on to know more about history of Reliance stocks and it’s rise in …
10 Mar, 2021
7 min read
PVR - a comeback on the cards?
Who doesn’t like to watch movies. But when the COVID pandemic first hit the Indian subcontinent, investors began to withdraw from their investments -…
08 May, 2021
8 min read
Adani Ports and its recent rise. Here's why
If you have been following the rise of Adani Ports’ stock price in recent weeks, you are probably curious as to what is driving this growth.
27 Jan, 2021
9 min read
HDFC Bank Ltd’s Journey to becoming the...
As of November 25, 2020, HDFC Bank had hit a market cap of ₹8 Lakh Crore and had become the third company to do so after Reliance and TCS.
07 Apr, 2021
7 min read
The Tata Motors Upheaval Story
The automotive industry has been famously tied to the performance of the extended economy for most countries.
06 May, 2021
9 min read
Should you place your bets on ITC?
Investors trading on the stock market are advised to focus on maximising their wealth by making shrewd decisions based on the performance and fundame…
06 Jan, 2021
6 min read
Tata Consultancy Services: A story...
Tata Consultancy Services (TCS) is the world’s most valuable IT company. Read this success story of how TCS expanded globally, acquired new verticals…
11 Jul, 2021
11 min read
Go Air IPO: Go Air looks to enter the IPO market
GoAir, one of India’s most popular airlines, is preparing for an initial public offering (IPO). Rebranding itself as “Go First”, the airline filed a …
09 Jul, 2021
9 min read
IPO Alert! Devyani International files...
Against all odds, the Indian market, despite a minor tailspin due to the nationwide lockdowns last year, has seemed to recover relatively well.
05 Mar, 2021
7 min read
The LIC IPO Game Plan
IPOs have attracted overt attention of retail and institutional investors alike in the recent Indian stock market scene.
23 Aug, 2021
6 min read
Clean Science, GR Infraprojects IPO...
This article seeks to shed light on initial public offerings (or IPOs) that have recently been up for grabs in the market. Included among them are Cl…
15 Jun, 2021
10 min read
A sneak peek at Zomato's IPO plans
Covid-19 came and turned the world upside down – tourism, airlines, fashion, F&B have suffered tremendously but online financial gateways, video conf…
30 Aug, 2021
7 min read
Should you Invest in the Latest Sovereign...
For the uninitiated, sovereign gold bonds can be understood to be certificates issued and mandated by the Reserve Bank of India.
24 Sep, 2021
7 min read
Indian Railways Share Quarterly Results -...
The Indian Railway Catering and Tourism Corporation (IRCTC) is a subsidiary of the Indian Railways.
04 Apr, 2021
7 min read
Dr. Reddy's Laboratories Ltd - Is this...
2020 was a peculiar year, especially in terms of the industries that managed to flourish despite the challenges that the lockdowns and isolation meas…
31 May, 2021
7 min read
The Rise of Metal Stocks Amid the 2nd Wave
The past few months have brought with them several changes.
13 Jun, 2021
7 min read
Soaring commodity prices. Here's why
Prices of commodities in the energy, metal and agriculture sectors have seen a sustained rise in the first few months of this year.
03 Jun, 2021
6 min read
Hotel Stocks on the Rise Despite Lockdown
The hospitality industry suffered a major setback when the prime minister announced a nationwide lockdown for 3 weeks at the end of March 2020.
23 Jul, 2021
8 min read
Laurus Labs Share: More than 50% Return...
Shares of pharmaceutical and biotech company Laurus Labs have continued to surge upwards and have hit a new high amounting to INR 599 per share on th…
24 Aug, 2021
5 min read
Stocks to Watch: NMDC, Tata Motors,...
This article seeks to shed light on stocks that have recently been made available in the market. Included among them is the government’s stake in NMD…
01 Jun, 2021
8 min read
Muted Tata Communications stock in wake...
There is a meme going around that says: Sneezes went from “Bless you” to “To hell with you” real soon.
05 Oct, 2021
7 min read
LIC IPO: All we Know So Far
While investors await the Life Insurance Corporation's mammoth public offering mostly happening this financial year, why do experts think the IPO has…
16 Mar, 2021
8 min read
Indiamart’s QIP: behind the scenes
Last year, when the pandemic had hit businesses hard across the globe, most people resorted to the internet to keep their businesses afloat.
Subscribe to #SmartSauda Newsletter
The hindi feature is coming soon!
The hindi feature is coming soon!
Contact Support
You will not be able to access your Smart Money Account
Report Issue
Share this page
×Hey, I have discovered this amazing financial learning platform called Smart Money and am reading this blog on . You can explore too.
Link Copied