Angel Broking has maintained neutral rating on Asian Paints
, in its January 22, 2013 research report.
“For 3QFY2013, Asian Paints (APL) posted a 30.6% yoy growth in its bottom-line which was ahead of our estimates. Volume growth for the domestic business is estimated to be at a healthy ~12-13% yoy for the quarter aided by the occurrence of festivals during the quarter.”
“For 3QFY2013, APL registered an 18.6% yoy growth in its consolidated top-line to `3,037cr. On a standalone basis, the revenue rose by ~20.4%, indicating an ~12-13% growth in the domestic volumes considering the price hikes taken by the company over the last one year. The performance on the volume front is much better than the ~1-2% yoy de-growth reported in 1QFY2013 and ~6-7% yoy growth reported in 2QFY2013. The consolidated OPM rose by 77bp yoy to 16.3%. Material Price Index for decorative products stood at 102.56 (2011-12 prices considered as base of 100), down from 106.67in 1QFY2013 and 107.71 in 2QFY2013. For 9MFY2013 the Material Price Index stood at 105.56.”
“APL’s sales volume growth which was subdued in the last two quarters picked up in 3QFY2013 with the decorative products business registering a robust performance. Over FY2012-14E, we expect the company to post a CAGR of 17.6% and 19.6% in its top-line and bottom-line respectively. At the current market price, the stock is trading at 29.9x FY2014E earnings. We maintain our Neutral view on the stock,” says Angel Broking research report.
Non-Institutions holding more than 90% in Indian cos
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