Buy Asian Paints; target of Rs 3000: Sharekhan
Sharekhan is bullish on Asian Paints has recommended buy rating on the stock with a target price of Rs 3000 in its research report dated January 21, 2021.
February 01, 2021 / 06:36 PM IST
Sharekhan's research report on Asian Paints
Asian Paints Limited (APL) registered healthy performance in Q3FY2021 with revenue growing by 25%; OPM improving by 439 bps to 26.3%; PAT growth stood at 62%. Volume growth in the domestic decorative business stood at 33% in Q3, well ahead of 11% volume growth in Q2. Sustained demand for decorative paints in tier III/IV towns and strong uptick in demand for premium paint products in metros coupled with scale-up in home improvement business would help maintain double-digit growth in the coming years.
We maintain our Buy recommendation on the stock with a revised PT Rs. 3,000. Leadership positioning in the domestic decorative paints business, focus on becoming a complete play in the home decor space, sturdy balance sheet, and expected higher dividend payout will keep valuations at premium levels.
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