Do not buy Asian Paints, says Phani Sekhar

Phani Sekhar, Fund Manager-PMS at Angel Broking told CNBC-TV18, "If one looks at the numbers posted by Asian Paints one would see distinct slowdown. The company has also guided investors that it cannot both grow its margins and volumes at the same rate as it was growing maybe two years back. But somehow I think maybe for lack of better alternatives large number of investors have flocked to this consumption oriented companies and blue chip fund within that such as Asian Paints.”

“But if one looks at volumes or margin expansion over last six quarters, the slowdown is all over the place and these kind of valuations at which the company is trading at clearly unsustainable over even the medium to long term,” he added.
“It is not at all a good idea to think of buying Asian Paints at this point in time. Better time was maybe 3-4 years back when one could have actually doubled your money maybe now it is a bit too late in the day.”