Mumbai: Most brokerages have maintained bullish view on Asian Paints following its December quarter earnings. Brokerages estimate double digit volume growth continuing going ahead, helped by shift from unorganised to organised marke The paint maker’s shares ended up 0.6 per cent at Rs 1786.10 on Friday. Centrum, Edelweiss, IIFL, HSBC, and Phillip Capital have maintained buy rating while Prabhudas Lilladher has maintained accumulate rating.
Asian Paints last week reported a 20.2 per cent rise in consolidated profit at Rs 764.4 crore. Consolidated revenue from operations, which included accounts of the subsidiaries and associates, rose 3 per cent to Rs 5,420.28 crore from Rs 5,263.04 crore.
Edelweiss continues to estimate double-digit volume growth in the decorative business and margin expansion led by operating leverage benefit in new plants. The brokerage has maintained buy rating with a target price of Rs 2075.
IIFL said Asian Paints intends to sustain focus on its newlylaunched products in the economy range, and said the resultant pressures on realisation are likely to weigh on near-term sales growth. The brokerage has cut EPS estimates on Asian Paints by 3-4 per cent to factor in such sales pressures.
However, Morgan Stanley has maintained equal-weight rating and Kotak Institutional has maintained reduce rating as the domestic decorative business segment reported low double digit volume growth.
Source: Economic Times
