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This study attempts to measure the financial stability and bankruptcy of the Paint industry taking top five companies listed in Bombay Stock Exchange (BSE) for the period of FY16 – FY20. In order to achieve our objective we have used DuPont Analysis and Altman Z-score. DuPont Analysis and Altman Z score helps the investors to identify the company’s financial strengths and the possibility of bankruptcy. An investor can compare the operational efficiency and measure the financial soundness of the companies in same industry. DuPont analysis is based on the analysis of Return on Equity (RoE) and Return on Investment (RoI). It decomposes RoE into three different drivers: Net Profit Margin, Asset Turnover and Equity Multiplier. It decomposes RoI into two different drivers: Asset Turnover and Profit Margin. Based on the findings, Asian Paints and Berger paints have better RoE and RoI indicates the financial reliability of these firms is strong. Altman Z score model is based on five financial ratios: Working Capital to Total Assets, Retained Earnings to Total Assets, Earnings before interest and tax to Total Assets, Net worth to Total Liabilities and Net Sales to Total Assets. Based on the findings, Asian paints, Berger paints and Kansai Nerolac are in safe zone indicates these firms will not get into bankruptcy in near future.