Asian Paints falls 5% on analysts downgrade post Q2 nos

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26 Aug, 2025 12:21

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Shares of Asian Paints fell 5 percent intraday on Monday reacting to a weak September quarter results. Brokerages have also downgraded the stock and lowered target price.

Jefferies has downgraded the stock to hold from buy with a reduced target price of Rs 823 from Rs 843 per share. It says that Asian Paints reported weak Q2FY16 mainly due to poor pricing/mix and sees deterioration in mix a risk to margins. Jefferies has also cut FY16-18 earnings per share (EPS0 by 5-8 percent.

Citi has slashed traget price to Rs 870 from Rs 930 and downgraded it to neutral from outperform. Disappointed at the earnings, it says that valuations seem stretched of Asian Paints.

However, Religare has a buy rating but lowered target price to Rs 935 from Rs 950 per share. It recommends buying the stock on dips at Rs 800-825. "While topline growth should recover to 10 percent in second half off a low base and festive sales, we pare our FY16-FY18 EPS to build in lower revenue growth this quarter," Religare states.

Asian Paint's net profit climbed 14.9 percent to Rs 399 crore in the quarter ended September 2015 from Rs 347.3 crore in corresponding quarter last fiscal. During the period, revenue was up 4 percent at Rs 3779 crore from Rs 3633 crore on an annual basis.

Deficient monsoons hit rural demand while Q2 was further led down by delayed fesitve season hence higher base. It saw weak growth in decorative coatings.

At 12:10 hrs Asian Paints was quoting at Rs 818.00, down Rs 38.75, or 4.52 percent on the BSE.

Posted by Nasrin SultanaFollow @NasrinzStory