Asian Paints stock jumps over 4% today, extends post-Q2 results rally; brokerages split on outlook

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26 Aug, 2025 12:21

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Asian Paints shares rose sharply for the second straight session on Thursday, gaining more than 4 percent to as much as Rs 2,897 in the morning session, as investors continued to react to the company’s stronger-than-expected July-September quarter results and fresh brokerage commentary. The stock had surged as much as 6 percent on Wednesday after the Q2 earnings beat.

Asian Paints delivered a clear positive surprise on all key metrics in the fiscal second quarter. Domestic decorative volumes grew 10.9 percent, more than double Street expectations of 4-5 percent. Net profit rose 47 percent year-on-year to Rs 1,018 crore, aided partly by last year’s one-off loss, while revenue increased 6.4 percent to Rs 8,531 crore. EBITDA jumped 21.3 percent to Rs 1,503 crore, with margins expanding over 200 basis points to 17.6 percent.

Asian Paints now commands a market capitalisation of about Rs 2.73 lakh crore, with the stock trading at a steep price-to-earnings ratio of nearly 76. Its valuation reflects its premium positioning in the consumer discretionary space. The counter also offers a dividend yield of 0.87 percent.

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Stock Call: Should you buy or sell Asian Paints shares

• Jefferies retained its ‘Buy’ call on Asian Paints stock, but raised its target price to Rs 3,300 per share, highlighting broad-based double-digit domestic volume growth and market share gains. The brokerage said the momentum was supported by brand investments, innovation and regional activations, adding that despite stiff competition, the paints business tends to reward long-term relationships.
• HSBC also maintained its ‘Buy’ rating, raising its target to Rs 3,050. It said that market share gains, a 10.9 percent volume expansion and a margin surprise in the core retail decorative segment underline the recovery. The brokerage expects the margin strength to continue and sees FY27 earnings per share roughly 10 percent above earlier estimates.
• Goldman Sachs, however, stayed on the opposite side of the trade with a ‘Sell’ call and a Rs 2,500 target. While citing the strong Q2 performance, it flagged challenges in sustaining momentum in the second half. The brokerage firm said that management continues to guide for mid-single-digit revenue growth for FY26, and that EBITDA margins are likely to remain in the 18–20 percent range given ongoing competitive intensity.

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