Question

Follow a public traded stock and analyse the changes in the stock price (possibly from the country of your origin). Make a presentation and write a report on the findings (describe the company, its main products, clients, competition, trends in the industry etc). Discuss the evolution of the stock prices in the last 10 years (if available) having into account the main macro and economic developments and the company related events.

Answer 1

I will choose a stock named Asian Paints over NIFTY50. The stock price have returned over 1500 percent from lows of 2008 recession.

This stock is the major player of the paints sector in india and accounts for almost 40 percent of overall indian paints industry.It caters to the retail home paints sectior and auto mobile sector.It has major clients who are mostly retailers and automobile players .

As far as trends of the industry is concerned, it is expected to show traction in upward trajectory.The Major reason is majority of indians are lower middle class and they donot still use home paints which are durable in nature and the prices of oil has gone down which is part of raw materials for paints sectors and the margins are expected to improve and overall costs are expected to go down.

The Macro factors are consumer demand and current economic uncertainity due to outburst of covid 19.

The Micro Factors are prices of crude and under penetrated paints market .