Accumulate Asian Paints, tgt Rs 1270: Angel

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Angel Broking has recommended an accumulate rating on Asian Paints with a target price of Rs 1270 in its July 23, 2008 research report. "For 1QFY2009, Asian Paints (APL) posted a robust Topline growth of 29.3% yoy to Rs 1,242 crore (Rs 961 crore) on a consolidated basis, which was significantly ahead of our estimates of 17.8% growth to Rs 1,131 crore. Asian Paint's consolidated Earnings for the quarter grew 29.6% yoy to Rs 106.2 crore (Rs 81.9 crore) on a reported basis (after Minority Interest) ahead of our estimates of a 17% growth to Rs 96 crore."

"We have revised our Target Price upwards to Rs 1270 (Rs 1142) as we have marginally upgraded our FY2009 and FY2010 Earnings estimates by 5.3% and 5.9% respectively, to account for buoyancy in domestic demand, price hikes and improvement in product mix. We believe Asian Paints will continue to command premium valuations in line with large cap consumer stories. At Rs 1112, the stock is trading at 17.7x FY2010E Earnings. We recommend an Accumulate on the stock," says Angel's research report.

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