Greatest compounder stock in Indian history🤯 #stocks #asianpaints #money #finance #stockmarket

Video Credit: @exploringminds_podcast
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#asianpaints #compoundinterest #warrenbuffet #invest #business #stockmarket #stocks
#investing #finance #financialfreedom
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Growth History of Asian Paints
Asian Paints Limited is one of India's largest and most respected companies in the paints industry. Founded in 1942 by Champaklal Choksey, Chimanlal Choksi, Suryakant Dani, and Arvind Vakil, the company has grown from a small-scale operation to a multinational powerhouse. Here's an overview of its growth journey:

Early Years and Establishment
1942: Asian Paints was founded in Kolkata (then Calcutta) as a small paint store.
1954: Expanded into the organized retail sector, opening its first modern paint factory in 1964 in Mumbai.
Expansion and Diversification
1970s-1980s: Expanded its product portfolio to include a wide range of decorative and industrial paints. Established a robust distribution network across India.
1983: Went public with its Initial Public Offering (IPO), allowing the public to invest in the company's growth.
National and International Growth
1990s-2000s: Continued to dominate the Indian market while also expanding internationally. Entered markets in the Middle East, Southeast Asia, South Africa, and the Caribbean.

2000s: Diversified into allied sectors such as home décor, waterproofing, and industrial coatings.
Technological Advancements and Sustainability

2010s: Invested heavily in research and development to innovate eco-friendly and technologically advanced products.

2020s: Focused on sustainable practices, reducing carbon footprint, and promoting environmentally responsible products.

Current Standing
2023: Asian Paints remains the market leader in India with a significant global presence. It is known for its strong brand equity, extensive distribution network, and consistent financial performance.
Hypothetical Investment Analysis: Investing ₹10,000 at IPO
To estimate the current value of an investment made during Asian Paints' IPO, we'll need to make several assumptions due to the lack of specific historical data. Here's a step-by-step approach:

1. Determining the IPO Date and Price
IPO Year: Asian Paints went public in 1983.
IPO Price: Historical IPO prices for Asian Paints are not readily available. For estimation purposes, let's assume the IPO price was ₹10 per share.
2. Calculating Number of Shares Purchased
Investment Amount: ₹10,000
Shares Purchased: ₹10,000 / ₹10 = 1,000 shares
3. Considering Stock Splits
Asian Paints has undergone multiple stock splits to date. Here's a simplified version:

1987: 1:1 (No split)
1994: 2:1 (Each share splits into 2)
2001: 3:1
2015: 1:1 (No split)
2020: 4:1
Total Split Factor: 2 (1994) × 3 (2001) × 4 (2020) = 24

Adjusted Shares: 1,000 shares × 24 = 24,000 shares
4. Estimating Current Stock Price
As of October 2023, let's assume Asian Paints is trading at approximately ₹3,000 per share. (Please verify the current price from a reliable financial source as this is an estimate.)

5. Calculating Current Investment Value
Current Value: 24,000 shares × ₹3,000 = ₹72,00,000
6. Considering Currency Conversion (If Needed)
If you initially invested $10,000 at the time of IPO, and assuming an average exchange rate of ₹7 per USD in 1983:

Investment in INR: $10,000 × ₹7 = ₹70,000
Following the same steps:

Shares Purchased: ₹70,000 / ₹10 = 7,000 shares
Adjusted Shares: 7,000 × 24 = 1,68,000 shares
Current Value: 1,68,000 shares × ₹3,000 = ₹5,04,00,000
Converted to USD (2023 Exchange Rate, assume ₹80/USD): ₹5,04,00,000 / ₹80 ≈ $6,30,000
Summary
Initial Investment: ₹10,000 at IPO (assumed ₹10/share in 1983)
Number of Shares Purchased: 1,000 shares
Adjusted for Splits: 24,000 shares
Estimated Current Value (₹): ₹72,00,000
If Initial Investment Was $10,000:
Adjusted Current Value (₹): ₹5,04,00,000
Converted to USD: Approximately $6,30,000
Please Note:

Assumptions Made: IPO price, stock split history, and current stock price are estimated for illustrative purposes. Actual figures may vary.
Dividends: This calculation does not account for dividends received and reinvested, which could significantly increase the total returns.
Currency Fluctuations: Exchange rates have varied over time, impacting the USD equivalent of the investment.
Market Risks: Stock investments are subject to market risks, and past performance is not indicative of future results.

[sanyogpatial]

Old money is always silent. New money is always loud

[bulletdeepgaming]

Indirectly roasted the whole shark tank 😂😂😂

[s.rabbi]

Universal truth, hats off to the speaker..

[pmishra]

Bro indirectly insulted Ashneer Grover 😂

[spg]

Its true -- I worked in Asian Paints -- Simply great company -- Their processes are world class in 1996 itself -- System driven organization .. Amit Sigle was Career executive IIM MBA, joined and grown to MD level -- This is policy of Asian Paints

[SAURABHKUMAR-ukgg]

I had the honour to meet him when he came to my brother’s Asian Paints dealership shop opening ceremony. Back then I didn’t know he was a man of such big stature💯
Gem of a person!!

[mohammadkhajasirajuddin]

100% right the sincere people don't want publicity.

[premaln]

company was started in a garage in Gaiwadi, Girgaon, Mumbai by four Gujarati friends Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil. They all belong to Jain families, and founded the company in February 1942.

[DaysExile]

Absolutely. Asian Paint pays really good salary to its employees. Better than many IT companies for non-tech roles. You just need to be good at marketing and sales cos those positions are open in bulk.

[keepwalking]

There are people who make money but have no name. There are people who have name but no money. That's the beauty of human nature.

[sameerasatija]

Finally some sensible content in a reel

[lapkganncouture]

He is so right on that. A wealthy person would never want his name should come in limelight.

[pankajjaiswal]

This few seconds would increase the price of Asian Paints.

[anshchopra]

Asian paint, Berger Paint, Wipro & Reliance

[AkashBaani]

Disclaimer: His speech is for PMS clients not for retailers..

[subhransusahoo]

Traditional businesses are always growing

[sohailstone]

Bang on 100% true, Ambani & Adani are the greatest businessmen India has ever seen & they will soon be Worlds No1 & No2 🙏🏼 thanks for all Indians donation 😂

[dhrubajyotidas]

At that time there was very few competitors, so now that compounding is not possible, better find a company with same status as that of Asian paints 28 years back

[sanskarsharma]

Agree with sir, even this list includes many more stocks also like MRF which staryed journey from a penny stock now valued at ₹2 lakh even their ceo doesn't come in limelight

[Sharmacasm_only]

I think it depends on the nature of business.
If the business is required to have a face it will require to founder to be at front.
1. Elon musk
2. Mukesh Ambani (goes on tv to launch products/services)

Perhaps paint is sold over the counter so it needs robust distribution and good quality over a famous face.

As you are deliberately in front of a camera to sell your books!

Each scenario is specific to their cases.

Nikhil Kamath is getting famous recently which affects his brand value positively.

Increases trust in whatever business he will invest or start next.

Calling people lallu pallu is not a sensible approach.