Equity Research on Paint Sector

Abstract

The task of Client Acquisition was related to sale of insurance products which can be done through tele callings and by pitching it to your connects/relatives. This was a tedious process and the major reason behind this was the current situation of Covid-19 because of which prospective clients were reluctant to invest their money in insurance as their current income does not allow them to invest in a long term plan. So were not able to bring any client for the company. The Project on ‘Equity Research on Paint Sector’ is based on the Economic analysis of the country i.e. India. Then the sector analysis of the paint sector based on Porter’s five forces model, government initiatives for the sector. Lastly, the company analysis which focuses on its vision, top management team and it’s financial analysis. It also includes valuation of the share prices of the selected companies being Asian Paints and Kansai Nerolac Paints. The valuation is based on the expected growth in the sector and adjusting the shortcoming of the sector. Historical PE’s has been used to value and estimate the company’s future market share price. The main idea behind conducting equity research is to find out the overall condition and trend of Paint sector and to find out promising scripts and paint sector companies to invest .It involves predicting the future prices. The financial analysis includes comparing data in terms of ratio analysis. Various types of valuation ratios have been calculated. On the basis of financial analysis and valuation the findings of the study is that ASIAN PAINTS as well as KANSAI NEROLAC both seems to be a good option for investment. Both are in a positive trend with almost all macro factors and political factors in their favor. On the valuation analysis part Kansai Nerolac seem to be a better avenue to invest.