Buy Asian Paints; target Rs 5000: Emkay
Brokerage house Emkay Global Financial Services is bullish on Asian Paints and has recommended buy rating on the stock with a target price of Rs 5000 in its June 24, 2013 research report.
June 25, 2013 / 19:09 IST
Emkay's research report on Asian Paints
Change in its brand look signifies establishment of a closer rapport with customers, while acquisition of Sleek Group (51 percent) depicts metamorphosis into a home décor company.Product mix, improved distribution, new product launches, international operations and high dividend payout - Key positivesLow volume growth, margin offsets & cautious outlook on business - Key negativesEmkay forecasts for APL with UVG of 7-9 percent and 170 bps yoy expansion in Ebidta margins in consonance with management commentary.Management commentary ad verbatim “cautiously optimistic outlook and hopes for an inclusive growth in the volatile and exciting environment’. Emkay’s forecasts for APL with underlying volume growth of 7-9 percent and Ebidta margin expansion of 170 bps yoy is in consonance to management commentary. Margin expansion to drive earnings performance in FY14E; tailwind is yet to fructify. We retain buy rating," says Emkay Global Financial Services research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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