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Asian PaintsNSE:ASIANPAINT -0.42%100 Return-on-Tangible-Equity is 22.44% as of Mar. 2026, which is 19% below its 10-year median of 27.77. GuruFocus rates NSE:ASIANPAINT with a GF Score™ of 100/100 and a GF Value™ of ₹2,973.82 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,570 Chemicals companies, Asian Paints ranks better than 91.34% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Asian Paints's annualized net income for the quarter that ended in Mar. 2026 was ₹46,885 Mil. Asian Paints's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹208,963 Mil. Therefore, Asian Paints's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 22.44%.
The historical rank and industry rank for Asian Paints's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ASIANPAINT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 19.99 Med: 27.77 Max: 32.64
Current: 22.1
During the past 13 years, Asian Paints's highest Return-on-Tangible-Equity was 32.64%. The lowest was 19.99%. And the median was 27.77%.
NSE:ASIANPAINT's Return-on-Tangible-Equity is ranked better than 91.34% of 1570
companies
in the Chemicals industry
Industry Median: 5.745
vs NSE:ASIANPAINT: 22.10
Asian Paints (NSE:ASIANPAINT) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Asian Paints Return-on-Tangible-Equity Related Terms
Asian Paints Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Asian Paints's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:ASIANPAINT vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Asian Paints's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Asian Paints Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Asian Paints's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Asian Paints's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 22.44% mean?
Asian Paints (NSE:ASIANPAINT) has a Return-on-Tangible-Equity of 22.44% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Asian Paints and its competitors. This is 19% below median its historical median of 27.77. Over the past decade, Asian Paints' Return-on-Tangible-Equity has ranged from 19.99 to 32.64. According to the industry distribution chart, Asian Paints ranks #136 out of 1570 companies in the Chemicals industry, placing it in the top 8.7%.
Is Asian Paints' Return-on-Tangible-Equity too high?
Asian Paints' current Return-on-Tangible-Equity of 22.44% is 19% below median its 10-year median of 27.77. Over the past 10 years, this metric has ranged from a low of 19.99 to a high of 32.64. The Chemicals industry median Return-on-Tangible-Equity is 5.75. Asian Paints' value of 22.44% is 290.6% above this industry median. Based on the distribution chart, Asian Paints ranks #136 out of 1570 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Asian Paints has a GF Score™ of 100/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Asian Paints' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Asian Paints ranks #136 out of 1570 companies for Return-on-Tangible-Equity. This places Asian Paints in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.75. Asian Paints' value of 22.44% is 290.6% above this benchmark. Historically, Asian Paints' own Return-on-Tangible-Equity has ranged from 19.99 to 32.64 over the past decade. While the company's 10-year median is 27.77 vs. the industry median of 5.75, Asian Paints has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.75, based on 1,570 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Asian Paints's current Return-on-Tangible-Equity of 22.44% is 290.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Asian Paints and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asian Paints's current Return-on-Tangible-Equity is 22.44%, which is 19% below median its own 10-year median of 27.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asian Paints stock overvalued right now?
Based on GuruFocus' analysis, Asian Paints (NSE:ASIANPAINT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,973.82, compared to a current price of ₹2,641.00 — trading 11.2% below its estimated fair value. The current Return-on-Tangible-Equity is 22.44%, which is 19% below median its 10-year median of 27.77 and 290.6% above the Chemicals industry median of 5.75. Asian Paints' overall GF Score™ is 100/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Asian Paints (NSE:ASIANPAINT), the current Return-on-Tangible-Equity is 22.44% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Asian Paints (NSE:ASIANPAINT) Overvalued in 2026?
Based on GuruFocus' analysis, Asian Paints stock appears to be undervalued.
The current stock price of ₹2,641.00 is trading 11.2% below its estimated GF Value™ of ₹2,973.82.
GuruFocus considers Asian Paints to be Modestly Undervalued.
Key valuation signals for NSE:ASIANPAINT:
Return-on-Tangible-Equity: 22.44% (19% below median its 10-year median of 27.77)
GF Value™: ₹2,973.82 vs. price of ₹2,641.00 (11.2% below fair value)
Industry Position: 290.6% above the Chemicals median (#136 of 1570)
No single metric tells the full story. See the NSE:ASIANPAINT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asian Paints Ltd is in the business of colour, decor, design and protection and operates through Decorative, International, Home Decor, and Industrial segments. The Decorative segment offers interior and exterior wall finishes, wood finishes, waterproofing, enamels, adhesives, tools, and undercoats. The Home Decor segment offers modular kitchens and wardrobes, bath fittings and sanitaryware, decorative lightings, uPVC windows and doors, wall coverings, furniture, fabric and furnishings, and rugs. The International segment caters to customers across Asia, the Middle East, Africa and the South Pacific. The Industrial segment provides automotive, general industrial, packaging, marine, industrial protective coatings, and powder coatings. The majority of revenue comes from India.
100GF Score
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